The Federal Government of Nigeria has increased its planned borrowing for 2026 to N29.20 trillion, following a widening fiscal deficit and expansion of the national budget.
The revised figure marks a sharp rise of N11.31 trillion from the earlier projection of N17.89 trillion outlined in the 2026 Abridged Budget Call Circular issued in December 2025.
According to details in the 2026 Appropriation Bill approved by the National Assembly, the fiscal deficit is now projected at N31.46 trillion, with total expenditure estimated at N68.32 trillion and revenue at N36.87 trillion.
The widening gap between government spending and revenue has significantly increased reliance on borrowing, which will account for the bulk of deficit financing.
Other funding sources remain limited, including N189.16 billion from asset sales and privatisation, and N2.05 trillion from multilateral and bilateral loans tied to specific projects.
Government revenue projections for 2026 show some improvement, driven by federation earnings, independent revenue, and income from government-owned enterprises.
Breakdown of expected revenue includes:
- N25.92 trillion from federation revenues
- N4.31 trillion from independent sources
- N5.85 trillion from government enterprises
- N1.37 trillion in grants and aid
- N300 billion from special funds
Despite these gains, expenditure growth continues to outpace revenue, resulting in a larger deficit.
Debt servicing remains a major burden, projected at N15.81 trillion, one of the largest components of the budget.
Other key spending areas include:
- N15.43 trillion for recurrent (non-debt) expenditure
- N32.29 trillion for capital projects
- N4.80 trillion for statutory transfers
Domestic debt servicing is estimated at N10.16 trillion, while foreign debt obligations stand at N5.36 trillion, reflecting rising costs on both fronts.
Earlier, President Bola Ahmed Tinubu sought approval to increase the 2026 budget, raising it from N58.4 trillion to about N67.4 trillion.
To support the expanded budget, lawmakers proposed several revenue measures, including a $10 increase in the oil benchmark price expected to generate about N2.59 trillion.
The telecommunications sector is also projected to contribute significantly, with MTN Nigeria expected to generate N724 billion in company income tax and Airtel Nigeria contributing N150 billion.
