The National Assembly has raised Nigeria's proposed 2026 budget to N68.323 trillion, up from President Bola Tinubu's initial N58.18 trillion, citing the need to cover legacy capital obligations and boost infrastructure spending. The revised plan allocates N32.287 trillion to capital projects, including N478.6 billion for presidential rail initiatives across Lagos, Kano, Kaduna and Ogun States, with feasibility studies for new urban rail systems in Enugu and Maiduguri. The oil price benchmark was set at $64.85 per barrel, though Brent crude now trades at $115 due to the Middle East conflict, significantly increasing revenue. Instead of saving the windfall, lawmakers approved $6 billion in fresh external loans, including a $5 billion request from First Abu Dhabi Bank and a $1 billion UKEF-backed loan for Apapa and TinCan ports. Debt servicing was allocated N15.809 trillion, while recurrent (non-debt) expenditure received N15.427 trillion. The 2025 budget cycle has been extended to June 2026 to allow for better implementation, as 70% of capital projects from that year were reportedly stalled. Former Vice President Atiku Abubakar criticised the Senate's swift approval of the new loans, questioning fiscal prudence.
Lawmakers are treating windfall oil revenue not as a rare opportunity to stabilise Nigeria's finances, but as an excuse to expand spending and borrowing. The N32.29 trillion capital allocation looks impressive on paper, but past execution rates suggest most of it will not translate into completed roads, rails or hospitals. With the National Assembly fast-tracking $6 billion in new debt just hours after Tinubu's request, accountability takes a back seat to political expediency. This budget revision signals more faith in spending than in saving — a familiar pattern that leaves Nigerians exposed when prices fall.
