President Bola Tinubu has signed into law the 2026 Appropriation Bill, approving a total expenditure of N68.32 trillion, while also extending the implementation of the 2025 capital budget to June 30, 2026.
The extension, contained in a separate amendment bill assented to by the President, shifts the deadline for the 2025 capital component from March 31 to June 30, 2026. According to a State House statement issued on Friday, the move is designed to ensure the full utilisation of funds allocated to ongoing infrastructure and development projects across the country.
A breakdown of the 2026 budget shows N4.799 trillion allocated to statutory transfers, N15.8 trillion for debt servicing, and N15.4 trillion for recurrent (non-debt) expenditure. Capital spending accounts for N32.2 trillion through the Development Fund—representing about half of the total budget size.
The Presidency said the allocation reflects the administration’s priorities, including economic stability, national security, infrastructure development, and inclusive growth. It added that the fiscal plan aims to strike a balance between statutory obligations, debt commitments, and investments targeted at improving productivity and living standards.
On the extension of the 2025 capital budget, the government explained that it would enable Ministries, Departments and Agencies (MDAs) to consolidate ongoing projects, improve completion rates, and maximise value for public spending, particularly for projects already at advanced stages.
Earlier, in March, President Tinubu had written to the National Assembly of Nigeria seeking approval to increase the 2026 budget by N9 trillion—from an initial proposal of N58.4 trillion to N67.4 trillion—to strengthen the implementation of priority programmes. However, the Presidency did not clarify whether the increase would be supported by new revenue streams or deepen the fiscal deficit.
The 2026 budget, which takes effect from April 1, is aligned with the administration’s Renewed Hope Agenda. The President directed all MDAs to ensure disciplined, transparent, and efficient utilisation of funds, with emphasis on value for money and timely project delivery.
Tinubu commended the leadership of the National Assembly, particularly Senate President Godswill Akpabio, for the expeditious consideration and passage of the budget, stressing the importance of continued executive-legislative collaboration in advancing national development.
He also reaffirmed his administration’s commitment to fiscal reforms, improved revenue generation, and increased investment in sectors capable of driving growth, job creation, and enhanced social protection.
The 2026 fiscal framework projects total revenue at N34.33 trillion against a deficit of N23.85 trillion, indicating a continued reliance on borrowing. Key sectoral allocations include N5.41 trillion for defence, N3.56 trillion for infrastructure, N3.52 trillion for education, and N2.48 trillion for health.
Budget assumptions are benchmarked on an oil price of $64.85 per barrel, daily production of 1.84 million barrels, and an exchange rate of N1,400 to the dollar.
