President Approves 2026 Budget and Extension for Capital Expenditure
President Bola Tinubu has officially signed the 2026 Appropriation Bill, which outlines a total expenditure of 68.32 trillion naira. This decision follows recommendations from analysts urging the federal government to prioritize capital budgeting. Furthermore, the President has endorsed a measure that extends the implementation period for the capital segment of the 2025 budget from March 31, 2026, to June 30, 2026.
In a statement released by Presidential Spokesperson Bayo Onanuga, the approved budget allocates 4.799 trillion naira for statutory provisions and 15.8 trillion naira for debt servicing. Notably, 15.4 trillion naira has been designated for recurrent expenditure, while 32.2 trillion naira is earmarked for capital projects. With capital expenditures constituting approximately 50% of the budget, this allocation underscores the administration’s commitment to fostering economic stability, enhancing national security, and promoting infrastructure development.
As the 2026 Appropriations Act takes effect on April 1, the federal government aims to implement its initiatives aligned with the New Hope Agenda. The President has instructed all Ministries, Departments, and Agencies (MDAs) to adopt a disciplined, transparent, and efficient approach to resource allocation, with a strong emphasis on achieving value for money and timely execution of projects. He acknowledged the swift passage of the budget by Congress, highlighting the importance of ongoing collaboration between the executive and legislative branches in advancing national development objectives.
Tinubu has also sanctioned the Appropriations (Repeal and Enactment) (Amendment) Bill 2026, which extends the capital expenditure timeline of the 2025 Appropriations Act. This extension aims to ensure effective utilization of allocated funds, particularly for critical infrastructure and development initiatives that are already underway across the country. It looks to enable MDAs to consolidate ongoing projects, improve completion rates, and maximize the effectiveness of public spending.
Comment on the Appropriation Act came from Professor Uche Uwaleke, Chairman of the Capital Markets Association of Nigeria (CMAN). He described the Act as a significant fiscal milestone and a strategic effort to align public expenditure with Nigeria’s long-term development goals. However, he stressed the necessity for the government to ensure that ambitious capital allocations yield tangible results and called for a focus on high-impact projects, alongside timely fund releases to avoid project delays.
The 2026 budget marks a notable shift with an allocation of 32.2 trillion naira for capital expenditures, which accounts for nearly half of the total budget. Uwaleke pointed out that this focus on capital spending represents a departure from previous budgets that prioritized recurrent expenditures at the expense of growth-enhancing investments. He believes that, if executed properly, a capital-centric budget has the potential to invigorate economic activity, attract private investment, and lay the foundations for sustainable development.
Idakolo Gbolade, Managing Director and CEO of SD&D Capital Management Limited, posited that this budget could significantly enhance the economy if effectively implemented, especially in a pre-election year where the government seeks to demonstrate economic progress to gain voter confidence. The extended deadline for the 2025 budget aims primarily to complete ongoing projects, addressing urgent security needs and infrastructure development.
Gbolade further emphasized the necessity for the public to recognize the budget’s potential positive impacts, particularly in light of the current inflation and purchasing power challenges facing Nigerians. With increased oil revenues and financial reforms, he expressed hope for substantial improvements in the economy that could alleviate the financial strain on citizens.
