The National Assembly has approved a N9 trillion increase in the 2026 budget, raising the proposed figure from N58.4 trillion to N68.3 trillion, sparking concern among economic experts. The revised budget includes a fresh $6.9 billion loan, which analysts say could deepen Nigeria's debt burden. Critics argue that the additional borrowing, combined with existing fiscal pressures, may trigger further inflation and push living costs higher for ordinary citizens. The budget proposal, still subject to executive approval, reflects rising expenditure expectations amid stagnant revenue growth.
Economic analysts have questioned the sustainability of the new figures, noting that Nigeria's debt service ratio is already consuming a growing share of federal revenue. One expert, speaking on condition of anonymity, stated, "Taking on $6.9 billion more in debt when debt servicing is nearing 90% of revenue is financially reckless." The lawmakers behind the budget adjustment cited increased security needs, infrastructure deficits, and rising personnel costs as justifications for the hike. However, critics highlight that recurrent spending continues to dominate the budget, leaving little room for transformative capital projects. The proposed loan is expected to come from multilateral and bilateral sources, though specific lenders have not been disclosed.
The budget will undergo further review before submission to the President for final approval. If signed into law, spending will reach a new high, even as inflation remains above 30% and the naira continues to face pressure in the foreign exchange market. Civil society groups have called for greater transparency in how the new funds will be allocated, warning that past budget expansions have not translated into measurable improvements in public services. The next few weeks will determine whether the executive accepts the legislature's proposed figures or pushes for a more restrained approach.
When lawmakers approve a N9 trillion budget hike and a $6.9 billion loan while inflation hovers above 30%, they are not planning for growth—they are betting that Nigerians will absorb more pain. Debt servicing already takes up most of federal revenue, so this borrowing means less money for hospitals, roads, and schools. This budget reflects fiscal habit, not strategy, and ordinary citizens will pay the price through a weaker naira and higher prices. There is no evidence this spending will boost productivity—only proof that spending continues unchecked.
