Abuja: The Federal Executive Council (FEC) has approved a N58.47 trillion budget proposal for the 2026 fiscal year. This announcement was made by Mr. Tanimu Yakubu, the Director-General of the Budget Office of the Federation, during a press briefing after the FEC meeting at the Presidential Villa in Abuja.
According to News Agency of Nigeria, the total size of the budget within the 2026-2028 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) reviewed is N54.46 trillion, with retained revenue accounting for N34.33 trillion. Yakubu noted that the aggregate expenditure for the 2026 budget proposal reflects a six percent increase compared to the 2025 budget estimate.
The budget includes projected spending by government-owned enterprises amounting to N4.98 trillion and N1.37 trillion for grants and donor-funded projects. It also encompasses statutory transfers of N4.1 trillion for debt service, including N15.52 trillion, which incorporates N3.388.54 billion for the sinking fund to retire maturing issues of local contractors and creditors.
Personnel costs, including pensions, are estimated at N10.75 trillion, with N1.02 trillion allocated to government-owned enterprises, marking a seven percent increase from the 2025 provision. Overhead costs are projected at N2.22 trillion. Yakubu emphasized that the 2026 budget aims to balance macroeconomic stabilization, development goals, and the medium-term fiscal framework.
The budget assumptions are described as conservative and realistic, particularly regarding oil prices, exchange rates, and dividends from government-owned enterprises. Yakubu highlighted that non-oil revenues now constitute about two-thirds of the total receipt, indicating a structural shift away from oil dependence. Key fiscal anchors include corporate tax, VAT, customs, and independent revenues, with expenditure growth driven mainly by debt service, wages, and pensions.
Capital spending is slightly reduced to focus on completing ongoing projects and ensuring value for money. The larger deficit results from financing needs rather than policy loosening, relying on domestic borrowing and concessional multilateral loans.
Sen. Abubakar Bagudu, the Minister of Budget and Economic Planning, confirmed that FEC considered the 2026 budget proposal, which will be presented to the National Assembly. An amendment to the medium-term expenditure framework was also approved, proposing a downward revision of the exchange rate from N1512 to N1400, affecting the budget size.
Alhaji Mohammed Idris, the Minister of Information and National Orientation, characterized the FEC meeting as focused on approving the 2026 budget for submission to the National Assembly by President Bola Tinubu.