*From N54.5tr to N58.47tr
The Federal Executive Council (FEC) has approved an upward review of the 2026 budget from N54.5 trillion to N58.47 trillion.
The approval was given during the emergency FEC meeting chaired by President Bola Tinubu at the Council Chamber of the State House, Abuja.
Briefing State House Correspondents shortly after the meeting, the Director General of Budget, Tanimu Yakubu, said the 2026 appropriation bill was six per cent higher than the 2025 budget estimate.
He said the expenditure includes projected spending of government owned Enterprises, amounting to N4.98 trillion, and N1.37 trillion for grants and donor-funded projects.
He explained that the projected aggregate spending includes statutory transfers of N4.1 trillion, debt service of N15.52 trillion, including N388.54 billion for the sinking fund to retire maturing bonds issued local contractors and creditors, personnel cost, including pension, N10.75 trillion, which includes N1.02 trillion for government owned enterprises, and seven per cent higher than the 2025 provision.
“Overhead cost N2.22 trillion, capital expenditure N25.68 trillion, 1.8 per cent lower than the 2025 capital provision, reflecting a more conservative approach to capital planning and the focus on completing ongoing projects.
“Capital allocation priorities include MDS ₦11.3 trillion, multilateral and bilateral loans N 2.052 trillion, capital component of the development levy: N1.8 trillion,” he further explained.
According to Yakubu, the 2026 budget reflects a deliberate balance between macroeconomic stabilisation and development imperatives and the medium-term fiscal framework.
He said the budget assumptions are conservative and realistic, particularly on oil price, exchange rate, and government-owned enterprises’ dividends.
“The revenues decline year on year, but non-oil revenues now account for roughly two-thirds of total receipts, confirming a structural shift away from oil dependence. Corporate tax, vat, customs, and independent revenues remain the main fiscal anchors.
“Expenditure growth is driven primarily by debt service, wages, and pensions rather than discretionary expansion.
“Capital spending is marginally reduced to prioritise completion of ongoing projects and value for money.
“The larger deficit reflects rather than policy loosening. Financing relies on domestic borrowing, complemented by concessional multilateral loans,” Yakubu said.
Speaking earlier, the Minister of Budget and Economic Planning, Atiku Bagudu, said FEC also amended the Medium Term Expenditure Framework (MTEF).
He also noted that a downward revision of the exchange rate from N1,512 to N1,400 was considered.