The Federal Executive Council (FEC) has approved the 2026 Appropriation Bill, paving the way for President Bola Ahmed Tinubu to present the budget proposal to a joint session of the Senate and the House of Representatives.
President Tinubu convened an emergency meeting of the council on Friday at the State House, Abuja, to deliberate on the 2026 budget estimates. The meeting considered a single-item memorandum focused on the proposed fiscal framework ahead of its formal transmission to the National Assembly.
Briefing journalists after the meeting, the Director-General of the Budget Office of the Federation, Dr Tanimu Yakubu, said the approved 2026 budget has a total expenditure of ₦58.47 trillion, representing a six per cent increase over the 2025 budget estimate.
According to Yakubu, the expenditure framework includes ₦4.98 trillion in projected spending by government-owned enterprises (GOEs) and ₦1.37 trillion allocated to grants and donor-funded projects. Statutory transfers are estimated at ₦4.1 trillion, while debt service obligations are projected at ₦15.52 trillion, including ₦3.39 trillion earmarked for the sinking fund to retire maturing local debts owed to contractors and other creditors.
Personnel costs, including pensions, are projected at ₦10.75 trillion, reflecting a seven per cent increase over the 2025 provision. This includes ₦1.02 trillion for personnel expenses of government-owned enterprises. Overhead costs are estimated at ₦2.22 trillion.
The proposed capital expenditure stands at ₦25.68 trillion, representing a 1.8 per cent reduction from the 2025 capital allocation. Yakubu said the marginal decline reflects a more conservative approach to capital planning, with emphasis on completing ongoing projects and ensuring value for money.
Capital spending priorities include ₦11.3 trillion for ministries, departments and agencies (MDAs), ₦2.05 trillion for multilateral and bilateral loan-funded projects, and ₦1.8 trillion as the capital component of the development levy.
Yakubu noted that the 2026 budget was crafted to balance macroeconomic stabilisation with development objectives within the medium-term fiscal framework. He said the underlying assumptions were conservative and realistic, particularly regarding oil price benchmarks, exchange rate projections, and expected dividends from government-owned enterprises.
On revenue projections, Yakubu said total revenues are expected to decline on a year-on-year basis but highlighted that non-oil revenues now account for about two-thirds of government receipts, underscoring a structural shift away from oil dependence. Key revenue sources include corporate income tax, value-added tax, customs duties, and independent revenues.
He added that growth in expenditure is being driven largely by debt servicing, wages, and pensions rather than discretionary spending, while the projected fiscal deficit reflects structural pressures rather than policy loosening. Financing of the deficit, he said, will rely mainly on domestic borrowing, supported by concessional loans from multilateral development institutions.
Further details of the budget are expected when the President formally presents the proposal to the National Assembly.
Post comments (0)