ABUJA, April 7 – Nigeria’s Federal Government has increased its planned borrowing for 2026 to N29.20 trillion, following a widening fiscal deficit driven by higher expenditure projections.
The revised figure, contained in the 2026 Appropriation Bill approved by the National Assembly, marks an N11.31 trillion increase from the earlier estimate of N17.89 trillion outlined in the 2026 Budget Call Circular.
The adjustment comes as the fiscal deficit is now projected at N31.46 trillion, with total expenditure set at N68.32 trillion against expected revenue of N36.87 trillion. As a result, borrowing is expected to account for the largest share of deficit financing.
Revenue projections are anchored on federation earnings estimated at N25.92 trillion, alongside N4.31 trillion from independent sources and N5.85 trillion from government-owned enterprises. Additional inflows include N1.37 trillion in grants and N300 billion from special funds.
Despite these projections, spending pressures remain elevated. Debt service alone is estimated at N15.81 trillion, while recurrent non-debt expenditure stands at N15.43 trillion. Capital expenditure is projected at N32.29 trillion, with statutory transfers put at N4.80 trillion.
A breakdown of debt obligations shows domestic debt service at N10.16 trillion and foreign debt service at N5.36 trillion.
To support revenue, lawmakers proposed adjustments to the oil benchmark, including a $10 per barrel increase expected to generate about N2.59 trillion.
Telecommunications firms are also projected to contribute significantly, with MTN Nigeria and Airtel Nigeria expected to generate a combined N874 billion in company income tax.
In addition, external borrowing was increased by N6.16 trillion to bridge the financing gap created by the expanded budget framework.
