The Federal Government has significantly increased its 2026 borrowing plan to ₦29.20 trillion—an ₦11.31 trillion jump from the earlier ₦17.89 trillion projection contained in the 2026 Abridged Budget Call Circular issued in December 2025.
The revised figure is captured in the 2026 Appropriation Bill approved by the National Assembly and detailed in the House of Representatives’ Order Paper dated March 31, 2026, as well as the accompanying budget schedules reviewed by Channels Television.
Reflecting mounting fiscal pressure, the country’s deficit is now projected at ₦31.46 trillion, up from the earlier estimate of ₦20.12 trillion. Total revenue for 2026 is expected to be ₦36.87 trillion, while aggregate expenditure is projected to be ₦68.32 trillion.
To plug the financing gap, the government plans to supplement borrowing with ₦189.16 billion from asset sales and privatisation, alongside ₦2.05 trillion in multilateral and bilateral project-tied loans.
Revenue projections are anchored on federation earnings, independent income, and returns from government-owned enterprises. A breakdown shows ₦25.92 trillion expected from federation revenues, ₦5.85 trillion from government enterprises, and ₦4.31 trillion from independent revenues. Additional inflows include ₦1.37 trillion in grants and aid, as well as ₦300 billion from special funds.
On the expenditure side, debt servicing remains a major burden, projected at ₦15.81 trillion. Recurrent non-debt spending is estimated at ₦15.43 trillion, while capital expenditure is put at ₦32.29 trillion. Statutory transfers are expected to total ₦4.80 trillion.
Further analysis shows domestic debt servicing will gulp ₦10.16 trillion, compared to ₦5.36 trillion earmarked for foreign debt obligations—underscoring the rising cost of both local and external borrowings.
Earlier, in a letter to Senate President Godswill Akpabio, President Bola Tinubu sought legislative approval to increase the 2026 budget by ₦9 trillion, raising it from ₦58.4 trillion to ₦67.4 trillion. The adjustment was partly driven by a proposed $10 per barrel increase in the oil benchmark, expected to generate an additional ₦2.592 trillion in revenue.
Lawmakers also projected stronger contributions from the telecommunications sector, buoyed by recent tariff adjustments and policy reforms. MTN Nigeria is expected to generate ₦724 billion in company income tax, while Airtel Nigeria is expected to contribute ₦150 billion—bringing the total additional revenue from the sector to ₦874 billion.
Despite these revenue-boosting measures, the National Assembly approved an increase in external borrowing by ₦6.163 trillion to bridge the funding gap, maintaining that Nigeria’s debt profile remains within manageable limits.
