LAGOS, Dec 22 – Nigeria expects its budget deficit to reach 4.28% of gross domestic product in 2026, President Bola Tinubu said on Friday, as he presented a 58.18 trillion naira ($40 Billion) spending plan aimed at consolidating economic reforms and accelerating growth.
The deficit is projected at about 23.85 trillion naira ($16.35 Billion), Tinubu told lawmakers during the budget presentation to the National Assembly.
“The 2026 budget is anchored on realism, prudence and growth orientation,” Tinubu said. “We will spend with purpose, manage debt with discipline, and pursue growth that is broad-based and sustainable.”
Under the proposal, 15.52 trillion naira has been allocated to debt servicing, while 26.08 trillion naira is earmarked for capital expenditure. Priority sectors include security, infrastructure, education and healthcare.
The budget assumptions include a benchmark crude oil price of $64.85 per barrel and oil production of 1.84 million barrels per day. Oil continues to account for roughly two-thirds of Nigeria’s export earnings.
The government also based the budget on an exchange rate assumption of 1,400 naira to the dollar.
Tinubu said recent macroeconomic indicators showed signs of improvement, noting that inflation fell to 14.45% in November from 24.23% in March, while foreign exchange reserves climbed to a seven-year high of $47 billion.
“These outcomes are not accidental,” he said, attributing the progress to difficult but deliberate policy decisions.
Although Tinubu did not provide a formal growth target, Nigeria’s budget chief earlier this month projected economic growth of 4.68% in 2026, slightly above the World Bank’s 4.4% forecast.
