Tinubu requests N9.3trn increase to 2026 budget as debt levels raise alarm

President Bola Tinubu has formally requested the National Assembly’s approval for a N9.3 trillion upward revision of the 2026 Appropriation Bill, raising Nigeria’s federal budget from N58.4 trillion to N67.7 trillion — a nearly 16 percent increase to the continent’s largest economy spending plan.

The request was communicated via a letter read on the Senate floor on Tuesday by Senate President Godswill Akpabio, marking lawmakers’ return from the two-week Eid-el-Fitr recess.

In his communication, Tinubu outlined three key objectives driving the proposed adjustment:

Regularizing Outstanding Legal Commitments – covering obligations carried over from previous appropriation cycles.

Consolidating Existing Government Debt – aligning prior borrowings within the fiscal framework to improve transparency.

Financing Strategic Priority Projects – supporting select initiatives while maintaining macro-fiscal stability.

“The proposed adjustment is aimed at strengthening fiscal transparency and ensuring more effective implementation of priority national programmes,” the President wrote.

The 2026 budget, initially presented in December 2025 as the “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” projected total expenditure of N58.18 trillion against expected revenue of N34.33 trillion, leaving a deficit of N23.85 trillion, or roughly 4.28 percent of GDP.

The new figures will push the deficit higher, though the administration has yet to provide updated revenue estimates.

READ ALSO: Tinubu donates entire presidential salaries to Armed Forces Welfare Fund on 74th birthday

Tinubu emphasized that the revision seeks to ease pressure on domestic financial markets and ensure that carryover obligations do not hinder implementation of the 2026 budget.

The proposed increase comes amid rising concerns over Nigeria’s public debt, which has surged past N152 trillion, with debt servicing reportedly consuming 50 to 60 percent of federal revenue. Economists warn that such high debt levels could crowd out investments in infrastructure, health, and social services.

Senate Committee on Appropriations Chairman, Solomon Adeola, acknowledged during hearings that borrowing is inevitable given volatile revenue inflows and pressing development needs. He noted, however, that “the key question is not whether we borrow, but how responsibly we manage these deficits.”

The 2026 budget framework anticipates total borrowing of over N20 trillion, including N17.89 trillion in domestic debt — representing a 72 percent increase from 2025 projections.

Economists have expressed mixed reactions to the proposed budget expansion. Dr. Ifeanyi Okonkwo, a fiscal policy analyst at the Nigerian Economic Summit Group, said, “While it is important to meet existing obligations and fund strategic projects, expanding the budget without corresponding revenue growth could exacerbate debt sustainability risks.”

Similarly, Professor Amina Yusuf, a public finance expert at Ahmadu Bello University, noted, “The administration’s emphasis on macro-fiscal stability is reassuring, but the pace of domestic borrowing and rising debt service could limit fiscal space for critical infrastructure and social interventions if not carefully managed.”

On the other hand, some analysts argue that a higher budget could stimulate growth. Chukwuma Nwosu, CEO of a Lagos-based economic think tank, commented, “If implemented prudently, the additional resources can accelerate development projects and generate employment, but execution efficiency will be critical.”

The upward revision of the 2026 budget underscores the government’s ambition to meet Nigeria’s growing expenditure needs while navigating fiscal constraints.

However, experts caution that careful debt management, prioritization of high-impact projects, and enhanced revenue mobilization will be essential to ensure that the expansion does not destabilize the country’s macroeconomic outlook.

The National Assembly is expected to review and deliberate on the proposed adjustment in the coming weeks, with lawmakers under pressure to balance developmental priorities against long-term fiscal sustainability.