Both chambers of the National Assembly passed the N68.3 trillion budget profile for the 2026 fiscal year at third reading on Tuesday. The figure is N9 trillion higher than the N58.472 trillion initially proposed by President Bola Ahmed Tinubu in December 2025. The adjustment followed agreement between federal lawmakers and the executive on revised fiscal parameters. The budget includes N5.71 trillion for unfunded capital obligations from the 2025 Appropriation Act and an additional N2 trillion for priority projects omitted during the rollover to the 2026 bill.
Senator Olamilekan Adeola, Chairman of the Senate Committee on Appropriations, detailed key allocations, including N478.60 billion for the Presidential Legacy Light Rail Projects in Lagos, Kano, Kaduna, and Ogun, with feasibility studies for Enugu and Maiduguri. N8.96 billion is set aside for feasibility studies on the Calabar–Maiduguri Corridor and Maiduguri–Sokoto Superhighway. The health sector will receive an additional US$344.83 million (about N482.76 billion), while N98.50 billion and N36.7 billion are allocated to the Court of Appeal and Supreme Court respectively. N268.54 billion reinstates the Judiciary's budget ceiling.
The budget comprises N4.79 trillion for statutory transfers, N15.4 trillion for recurrent expenditure, N32.2 trillion for capital spending, and N15.8 trillion for debt servicing. Oil price benchmark was revised from $65 to $75 per barrel. Committees urged strict implementation to avoid delays experienced in 2025.
The Senate also approved $6 billion in foreign loans: $5 billion from First Abu Dhabi Bank to cover budget deficits and $1 billion from UK Export Finance for Lagos port rehabilitation. President Tinubu noted the $5 billion will increase Nigeria's public debt to $110.3 billion as of December 31, 2025, with projected debt service of N20.5 trillion in 2026. Senate President Godswill Akpabio confirmed the $1 billion will fund the Lagos Port Complex, with $373.2 million for contracts and $56.5 million for UKEF premium.
Nigeria is committing to another massive debt load before the 2026 budget is even implemented, with President Tinubu securing $6 billion in fresh loans even as debt servicing is projected to consume N20.5 trillion. The budget's N32.2 trillion capital allocation looks impressive on paper, but past delays in fund releases suggest execution remains the real bottleneck. If the government fails to fix implementation, all the planning and borrowing will deliver little beyond higher debt.
