Nigeria Braces For More Loans As 2026 Budget Deficit Widens To ₦25.27 Trillion
NIGERIA is set to continue borrowing to finance its expanding budget deficit as the 2026 Appropriation Bill reveals a funding gap of ₦25.27 trillion, raising renewed concerns over debt sustainability, weak revenue mobilisation, and poor budget implementation.
This position was disclosed by the Chairman of the Senate Committee on Appropriations, Senator Solomon Adeola, during the public hearing on the 2026 budget held at the National Assembly in Abuja. The session attracted senior government officials, fiscal experts, economists, and top finance authorities.
₦58.47 trillion Spending Plan, ₦33.19 trillion Revenue
According to Adeola, the 2026 budget proposes a total expenditure of ₦58.47 trillion against projected revenue of ₦33.19 trillion, leaving a deficit of ₦25.27 trillion. He revealed that debt servicing alone would gulp ₦15.90 trillion, underscoring the pressure public finances continue to face.
“Nigeria cannot avoid borrowing because revenue inflows are unpredictable while development needs remain enormous,” Adeola said. “The key issue is not whether we borrow, but how responsibly these deficits are managed.”
He noted that borrowing would be structured to avoid crowding out private-sector credit, with emphasis on external loans, public-private partnerships, asset optimisation, privatisation, and Eurobond issuances.
No More Budget Rollovers
In a major policy shift, the Senate vowed to end the practice of extending budget implementation beyond the fiscal year. Adeola warned that abandoned projects, weak execution, and poor accountability had become entrenched partly because of repeated rollovers.
“Never again will budget extensions be granted beyond 31st December of any fiscal year,” he declared, adding that strict timelines would now be enforced to improve fiscal discipline and credibility.
The Senate also pledged tighter scrutiny of service-wide votes, insisting that no agency would access such funds without clear justification and accountability.
Electricity Sector Under Scrutiny
Adeola identified the electricity sector as a major drain on public resources, calling for urgent and comprehensive reforms, including the unbundling of the power sector to reduce fiscal leakages and improve efficiency.
He stressed that every expenditure line in the 2026 budget would be closely examined to ensure value for money and alignment with national development priorities.
Health Ministry Gets ₦36 million from ₦218 billion Capital Budget
Meanwhile, concerns over poor budget implementation were reinforced by revelations from the Minister of Health, Prof. Mohammed Ali Pate, who disclosed that the Federal Ministry of Health received only ₦36 million out of the ₦218 billion appropriated for its 2025 capital expenditure.
Pate made the disclosure during the ministry’s 2026 budget defence before the House of Representatives Committee on Healthcare Services, explaining that the meagre release made it impossible to execute planned capital projects.
He attributed the situation to the bottom-up cash planning system operated by the Office of the Accountant-General of the Federation, as well as delays in Nigeria’s counterpart funding obligations, which stalled access to donor-supported projects.
Lawmakers Demand Transparency
While noting that personnel costs were fully released and utilised, Pate said capital implementation was stalled by factors beyond the ministry’s control. He reaffirmed the government’s commitment to Universal Health Coverage through strengthened primary healthcare delivery.
The Chairman of the House Committee on Healthcare Services, Amos Magaji, directed the ministry to submit detailed documentation on donor funds received and how they were utilised, signalling intensified legislative oversight as Nigeria navigates its mounting fiscal challenges.
