Federal Government Proposes N54.43tn Budget for 2026 Amid Soaring Debt Burden

The Federal Government unveiled a N54.43 trillion budget proposal for 2026 on Wednesday, projecting N50.74 trillion in total revenue and a 4.68 per cent economic growth rate. The plan carries a N20.10 trillion deficit, which surpasses the entire 2022 national budget by N2.78 trillion. Officials presented the details after the Federal Executive Council approved the 2026-2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper.

The minister of budget and economic planning explained that the framework drew from wide consultations with ministries, businesses, civil society, and partners. He highlighted a cautious oil price benchmark of $64.85 per barrel and an exchange rate of N1,512 to the dollar. For the first time, authorities set dual crude production targets: 2.06 million barrels per day as the goal and 1.8 million as the conservative benchmark, creating a 12.6 per cent safety margin.

Revenue sharing for 2026 allocates N22.60 trillion to the Federal Government, N16.30 trillion to states, and N11.85 trillion to local governments. The Federal Government’s overall share reaches N34.33 trillion, including N4.98 trillion from government-owned enterprises, marking a 16 per cent drop from 2025 estimates. Key spending areas include N3 trillion for statutory transfers and N15.27 trillion for non-debt recurrent costs.

Debt servicing demands N15.91 trillion, devouring 29.2 per cent of the total budget. The N20.10 trillion shortfall equals 36.9 per cent of planned spending, forcing heavy borrowing. Compared to 2025’s N54.99 trillion budget with a N9.22 trillion deficit and N14.32 trillion debt service, the new figures show an 118 per cent deficit rise.

The 2022 amended budget totalled N17.32 trillion, with N3.98 trillion for debt—now up 299 per cent in four years. Recurrent spending climbed 115 per cent from N7.11 trillion then to N15.27 trillion proposed. Capital outlay grew more slowly, amid calls for better fiscal-monetary alignment and security investments.

The president secured National Economic Council backing for tighter policy coordination and more funds for security training facilities. The council also endorsed curbs on oil and mineral sector revenue leaks, plus infrastructure boosts via the Renewed Hope fund to spur local production. The National Assembly receives the document on Monday to underpin the full Appropriation Bill.

Experts voiced deep worries over the deficit’s size and late timing, which erodes trust and strains families already squeezed by costs. They urged spending controls and a return to timely budgeting to shield fragile gains.

• Dr Muda Yusuf warned of a debt trap choking fiscal space, risking inflation and exchange woes; he called for leveraging revenue rises to trim borrowing.
• Professor Sheriffdeen Tella decried basing 2026 plans on barely started 2025 implementation, labelling it fiscal chaos without performance data.
• Professor Adeola Adenikinju faulted the delayed cycle for poor scrutiny, breaching the three per cent GDP deficit cap, crowding out private credit, and delaying capital releases that hobble growth.

These numbers cast long shadows over households scraping by, where every borrowed naira buys time but deepens tomorrow’s load. Nigeria yearns for budgets that build, not just bridge, the gaps in lives stretched thin by endless wants.