Senate Passes ₦68.32 Trillion 2026 Budget After ₦9.09 Trillion Expansion
Senate Approves Expanded ₦68.32trn 2026 Budget
THE Senate has approved a total expenditure of ₦68.32 trillion for the 2026 fiscal year, following the adoption of major adjustments proposed by President Bola Ahmed Tinubu.
The revised budget reflects an increase of about ₦9.09 trillion from the initial fiscal framework, positioning it as one of the largest spending plans in Nigeria’s history.
Breakdown: Capital Spending Takes the Lead
A detailed breakdown of the approved budget shows a strong emphasis on infrastructure and development projects. Capital expenditure accounts for ₦32.29 trillion, representing the largest share of the budget.
Recurrent expenditure stands at ₦15.43 trillion, covering salaries and administrative costs, while ₦15.81 trillion has been earmarked for debt servicing—highlighting the growing burden of loan repayments on public finances.
Statutory transfers, including funding for key government institutions, are projected at ₦4.80 trillion.
Key Adjustments and Legacy Obligations
Central to the expansion is the inclusion of ₦5.71 trillion in legacy capital obligations carried over from the 2025 fiscal year. The government says this measure is necessary to prevent project abandonment and ensure continuity.
An additional ₦2 trillion has been allocated to priority projects across critical sectors, reinforcing the administration’s development agenda.
Infrastructure and Sectoral Investments
Under the Ministry of Finance Incorporated framework, the budget provides ₦478.60 billion in equity contributions for light rail projects in Lagos, Kano, Kaduna, and Ogun States.
Further allocations include ₦8.96 billion for feasibility studies on major road corridors such as the Calabar–Maiduguri route and the Maiduguri–Sokoto Superhighway.
The health sector is also set to benefit, with about $344.83 million (₦482.76 billion) earmarked for priority interventions tied to bilateral commitments.
Boost for Judiciary Ahead of 2027
The judiciary received significant attention, with ₦98.50 billion allocated to the Court of Appeal and ₦36.7 billion to the Supreme Court.
An additional ₦268.54 billion is intended to strengthen the judiciary’s budget and support anticipated expansions ahead of the 2027 general elections.
Funding Strategy and Fiscal Concerns
To finance the expanded budget, the government plans to rely on a combination of increased revenue and borrowing.
An upward review of the oil benchmark price is expected to generate ₦2.592 trillion, while improved tax collections—particularly from telecom giants like MTN Nigeria and Airtel Nigeria—could contribute about ₦874 billion.
However, a funding gap of ₦6.163 trillion is projected to be covered through external borrowing.
While the budget is seen as a tool for driving growth and infrastructure development, analysts continue to raise concerns over Nigeria’s rising debt profile and the sustainability of its fiscal strategy.
