President Bola Ahmed Tinubu on Friday declared that the 2026 Federal Budget is firmly anchored on “macroeconomic stability, job-rich growth and poverty reduction,” as he presented the N58.18 trillion Appropriation Bill to a joint session of the National Assembly in Abuja.
Presenting the budget titled “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” Tinubu said it represents “a defining moment in our national journey of reform and transformation.”He stated that while the reforms of the last two and a half years “have not been painless,” Nigerians’ sacrifices are not in vain.
“Today, I present a budget that consolidates our gains, strengthens our resilience, and takes this country out of the dark tunnel of hopelessness, from survival to growth,” the President told lawmakers.
He explained that the budget is designed to ensure growth translates into “decent jobs, rising incomes, and a better quality of life for every Nigerian.”According to Tinubu, the 2026 Budget is guided by four clear objectives: “to consolidate macroeconomic stability; improve the business and investment environment; promote job-rich growth and reduce poverty; and strengthen human capital development while protecting the vulnerable.He put the total projected expenditure at N58.18 trillion, with expected revenue of N34.33 trillion, resulting in a deficit of N23.85 trillion, representing 4.28 per cent of GDP.
Capital expenditure is pegged at N26.08 trillion, while recurrent non-debt spending stands at N15.25 trillion, alongside N15.52 trillion for debt servicing.
“These numbers are not mere accounting lines. They are a statement of national priorities,” Tinubu said.
Outlining sectoral priorities, the President said N5.41 trillion was proposed for defence and security, N3.56 trillion for infrastructure, N3.52 trillion for education and N2.48 trillion for health.
Giving reasons for the huge outlay on the above sectors, the president stated that “without security, investment will not thrive; without educated and healthy citizens, productivity will not rise; and without infrastructure, jobs and enterprises will not scale.”
On security, Tinubu announced a reset of Nigeria’s national security architecture and the establishment of “a new national counterterrorism doctrine — a holistic redesign anchored on unified command, intelligence gathering, community stability, and counter-insurgency.
“Under this new architecture, any armed group or gun-wielding non-state actors operating outside state authority will be regarded as terrorists.
“Bandits, militias, armed gangs, armed robbers, violent cults, forest-based armed groups and foreign-linked mercenaries will all be targeted,” he said
Tinubu further warned that the government would also pursue “all those who perpetrate violence for political or sectarian ends, along with those who finance and facilitate their evil schemes,” vowing that his administration would “show no mercy to those who commit or support acts of terrorism, banditry and kidnapping for ransom.”
On implementation, the President assured Nigerians that “2026 will be a year of stronger discipline in budget execution,” disclosing that he had directed key finance and budget officials to ensure strict adherence to appropriated details and timelines.
“The most significant budget is not the one we announce. It is the one we deliver,” he said.
FEC Revises MTEF Exchange Rate to N1,400/$
Earlier on Friday, the Federal Executive Council (FEC) approved a N58.47 trillion federal budget for the 2026 fiscal year and endorsed a downward revision of the exchange rate assumption in the Medium-Term Expenditure Framework (MTEF) to N1,400 per dollar.
The approval was given at a meeting of the Council presided over by Vice President Kashim Shettima, ahead of the transmission of the budget proposal to a joint session of the National Assembly by President Tinubu.
Briefing State House correspondents after the meeting, the Minister of Information and National Orientation, Mohammed Idris, said the Council’s sitting was largely devoted to the consideration and passage of the 2026 Appropriation Bill and the accompanying amendment to the MTEF.
According to him, the budget was presented to the Council by the Minister of Budget and Economic Planning, Atiku Bagudu, alongside the director-general of the Budget Office, Tanimu Yakubu, after which it was deliberated upon and approved.
Providing details of the approved estimates, the director-general of the Budget Office said the aggregate expenditure for 2026 is projected at N58.47 trillion, representing an increase of about six per cent over the 2025 budget estimate.
He explained that the figure includes projected spending by government-owned enterprises (GOEs) amounting to N4.98 trillion, as well as N1.37 trillion earmarked for grants and donor-funded projects.
The approved expenditure framework also makes provision for statutory transfers estimated at N4.1 trillion and debt service obligations of N15.52 trillion.
The debt service component includes N3.39 trillion for the sinking fund to retire maturing obligations to local contractors and creditors.
Personnel costs, including pensions, are projected at N10.75 trillion, a seven per cent increase over the 2025 provision. This figure includes N1.02 trillion for personnel costs of government-owned enterprises. Overhead costs are estimated at N2.22 trillion.
Capital expenditure is put at N25.68 trillion, representing a 1.8 per cent reduction from the 2025 capital allocation. The slight reduction, according to the Budget Office, reflects a more conservative approach to capital planning and a policy focus on completing ongoing projects rather than initiating new ones.
Capital allocation priorities include N11.3 trillion for ministries, departments and agencies (MDAs), N2.05 trillion for multilateral and bilateral loan-funded projects, and N1.8 trillion representing the capital component of the development levy.
Yakubu said the 2026 budget was designed to strike a deliberate balance between macroeconomic stabilisation and development imperatives within the framework of the medium-term fiscal strategy.He noted that the underlying assumptions of the budget were conservative and realistic, particularly with respect to oil price, exchange rate and dividends from government-owned enterprises.
On the revenue outlook, the Budget Office disclosed that although aggregate revenues are projected to decline year-on-year, non-oil revenues now account for roughly two-thirds of total government receipts, signalling a structural shift away from oil dependence.
Corporate income tax, value-added tax, customs duties and independent revenues were identified as the main fiscal anchors of the 2026 budget.
Expenditure growth, according to the briefing, is driven largely by debt service, wages and pensions, rather than discretionary expansion. The larger fiscal deficit projected for 2026 was described as structural rather than a result of policy loosening.
Financing the deficit will rely mainly on domestic borrowing, complemented by concessional loans from multilateral sources.
Earlier, while addressing the briefing, Minister of Budget and Economic Planning Atiku Bagudu confirmed that FEC also approved an amendment to the MTEF, including a revision of the exchange rate assumption from N1,512 to N1,400 to the dollar, with consequential adjustments to the overall budget size.
He said the approved budget proposal and amended fiscal framework would be transmitted to the National Assembly later in the day for legislative consideration.
Tinubu Transmits Fresh 2024, 2025 Appropriation Repeal, Re-enactment Bills To Reps
On the same day, President Tinubu transmitted to the House of Representatives, fresh Appropriation (Repeal and Re-enactment) Bills, 2024 and 2025 for consideration and approval.
The request, contained in a letter dated December 18, 2025 and addressed to Speaker Abbas Tajudeen, who read it at plenary on Friday, superseded the president’s earlier submission dated December 16, 2025 and taken on the floor of the House on Wednesday.
The first bill seeks to repeal the 2024 Appropriation Act of N35.05 trillion and re-enact it by authorising the issuance from the Consolidated Revenue Fund of the Federation to the total sum of N43.56 trillion.
Out of this sum, N1.74 trillion is for statutory transfers, N8.27 trillion is for debt service, N11.26 trillion is for recurrent (Non-debt) expenditure and N22.27 trillion is for capital expenditure/development fund contribution, for the year ending 31 December 2025 (as provided in the bill).
The second bill intends to repeal the 2025 Appropriation Act of N54.99 trillion and re-enact it by authorising the issuance from the Consolidated Revenue Fund of the Federation to the total sum of N48.31 trillion.
Of this amount, N3.64 trillion is for statutory transfers, N14.31trillion is for debt service, N13.58 trillion for recurrent (Non-debt) expenditure, and N16.70 trillion ,for capital expenditure/development fund contribution for the year ending 31 March, 2026 (as provided in the bill).
The president explained that the bills are submitted to cater for all items not previously recognised while also reflecting a revised capital implementation target of 30 per cent.
He added that the adjustment aligned with current fiscal realities and execution capacities, while ensuring that budget performance remains credible and transparent.
Tinubu stated that the move seeks to extend the 2025 budget to March 31, 2026 to allow for full release of the targeted 30 per cent for Ministries, Departments and Agencies (MDAs).
He also said the approach is part of a broader fiscal reform measure aimed at eliminating the overlap of multiple concurrently running budgets, thereby strengthening planning, execution, and accountability across government expenditure cycles.
“It further provides a transparent and constitutionally grounded appropriation mechanism, and prudent public financial management framework.
“The bills also strengthen implementation discipline and accountability by among other provisions: requiring that appropriated funds are released and applied strictly for the purposes specified in the schedules, providing that virement may only be effected with prior approval of the National Assembly.
“The House of Representatives is invited to note that this letter supersedes my earlier submission vide PRES/134/50/S/…dated 16th December, 2025. It is my hope that the House will consider the passage of the bills in its usual expeditious manner,” the letter added.
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