Nigerian Senate Approves Historic N68.3 Trillion Budget for 2026
On Tuesday, the Nigerian Senate passed the 2026 Appropriation Bill, raising the proposed budget to N68.323 trillion, an increase of over N9 trillion from the original proposal submitted by President Bola Tinubu.
This significant upward revision aims to address outstanding legacy obligations, enhance critical infrastructure, fortify the judiciary, improve health interventions, and facilitate preparations for the upcoming 2027 general elections.
Senator Solomon Adeola, Chairman of the Senate Committee on Appropriations, stated that these adjustments were essential to regularize prior commitments, align the budget with current economic realities, and uphold macroeconomic stability.
Initially, President Tinubu presented a budget bill of N58.18 trillion to the National Assembly on December 19, 2025. Dubbed the “Integration, Resilience and Shared Prosperity Budget,” the proposal prioritized economic growth with substantial allocations for security and capital projects.
The revised budget approved by both legislative houses now reflects a notable increase in total expenditures, underscoring the government’s commitment to addressing pressing fiscal issues.
The proposed amendments outline allocations of N4.799 trillion for statutory transfers, N15.809 trillion for debt repayments, and N15.427 trillion for recurrent (non-debt) expenditures. A substantial N32.287 trillion is earmarked for capital expenditures, highlighting a robust dedication to infrastructure development and economic expansion.
The committee explained that the N9.09 trillion adjustment was necessary to incorporate previously omitted essential expenditures and to ensure that outstanding obligations from past budgets do not impede the 2026 fiscal framework.
Funding Sources for the Expanded Fiscal Framework
A significant component of the budget adjustment involves the inclusion of N7.71 trillion in capital debt balance under the 2025 Appropriation Act. The Commission indicated that these obligations are unlikely to be resolved before the 2025 capital budget expires and thus need to be carried into the 2026 fiscal framework.
Lawmakers highlighted that around 70% of capital projects in the 2025 budget face revenue shortfalls, stressing the critical need for continued funding to prevent project abandonment and avoid escalating costs.
In addition to clearing legacy debts, the Commission introduced new provisions aimed at executing strategic state interventions in key sectors. Notably, the federal government will allocate N478.6 billion through the Ministry of Finance (MOFI) to support President Tinubu’s legacy light rail projects in Lagos, Kano, Kaduna, and Ogun states.
Additional provisions will fund feasibility studies for proposed urban rail systems in Enugu and Maiduguri, along with enhancements to the narrow gauge rail network. The committee also approved N8.96 billion for a feasibility study along the Calabar-Maiduguri Corridor and Maiduguri-Sokoto Expressway as part of the Tinubu National Ring Road Initiative, which aims to bolster regional integration and facilitate trade across the nation.
Additional Investment in Health and Judiciary Sectors
The health sector will also see a boost, with an additional $344.83 million, approximately N482.76 billion, earmarked for priority interventions linked to existing bilateral agreements and implementation commitments. This funding is designed to strengthen health infrastructure and improve service delivery nationwide.
As part of preparations for the 2027 elections, significant investments have been made to enhance the judiciary. The Commission allocates NOK 98.5 billion for the Court of Appeal, NOK 36.7 billion for the Supreme Court, and NOK 268.54 billion to reinstate the judicial budget cap, accommodating anticipated new judicial appointments.
Lawmakers emphasized that fortifying the judiciary is vital for maintaining democratic governance, especially in managing election-related disputes and ensuring prompt justice enforcement.
New Revenue Generation Measures Announced
To finance the expanded budget, the committee proposed a blend of revenue-raising strategies and borrowing. A key strategy includes increasing the oil benchmark by $10 per barrel, which is expected to generate an additional N2,592 billion in revenues.
The rising telecommunications sector also promises to enhance government revenue. Recent rate adjustments and policy reforms have reinvigorated the sector, attracting over $2 billion in new investments. Consequently, MTN Nigeria anticipates paying NOK 724 billion in corporate taxes in 2026, while Airtel Nigeria is projected to contribute NOK 150 billion, with total expected sector revenue reaching NOK 874 billion.
Despite these revenue measures, the committee sanctioned an increase in external borrowing by N6,163 billion to cover the remaining funding gap while keeping the overall borrowing plan within manageable limits.
Commitment to Fiscal Responsibility and Effective Implementation
The report asserts that the 2026 budget is designed to strengthen macroeconomic stability, enhance the business and investment environment, spur job creation, and alleviate poverty in line with the administration’s policy objectives. The budget prioritizes critical sectors such as security, infrastructure, health, and education, aiming to deliver inclusive growth and improve living standards for all Nigerians.
The committee recalled that detailed discussions on the bill’s principles took place in December 2025 before it underwent further scrutiny. The legislative process included direct engagement with the President’s economic team, comprising the Ministers of Finance, Budget, and Economic Planning, along with other key officials.
To encourage transparency, the Commission held a public hearing on February 9, 2026, themed “From Budget to Effectiveness,” allowing feedback from various stakeholders, including ministries, civil society organizations, and the private sector. This consultation process ensured the budget is robust and reflective of the diverse aspirations of the Nigerian populace.
Lawmakers raised concerns about bureaucratic hurdles obstructing the 2025 budget’s implementation, particularly delays in fund disbursement. They underscored the need for urgent reforms to overcome these challenges, warning that failure to do so could compromise the efficacy of the 2026 budget.
To achieve these objectives, the committee recommended enhanced coordination between the executive and legislative branches, along with strengthened oversight to ensure disciplined and timely execution of projects. They also emphasized the importance of translating budget provisions into measurable outcomes, aligned with the overarching theme of “From Budget to Effectiveness.”
To maintain project continuity, the Committee suggested extending the 2025 Appropriations Act until June 30, 2026, to allow for the completion of ongoing initiatives. The Senate Appropriations Committee Chair acknowledged that collaboration with the House of Representatives resulted in a harmonious and balanced report, commending all stakeholders for their contributions.
The ultimate approval of the amended appropriations bill marks a pivotal moment for Nigeria, establishing the 2026 budget as the largest in the nation’s history. This highlights not only the magnitude of the fiscal challenges faced but also the government’s unwavering determination to foster economic recovery, stability, and sustainable growth.
