By Seun Ibiyemi
The Federal Government (FG) has revised its 2026 borrowing plan, raising the projected figure by ₦11.31 trillion to a new total of ₦29.20 trillion, according to the recently approved 2026 Appropriation Bill.
The adjustment marks a significant increase from the ₦17.89 trillion initially projected in the Abridged Budget Call Circular released in December 2025.
The fiscal deficit for the year is now estimated at ₦31.46 trillion, necessitating an expanded borrowing strategy to bridge the funding gap.
Government revenue for 2026 is projected at ₦36.87 trillion, driven by ₦25.92 trillion in federation revenues, ₦5.85 trillion from government enterprises, ₦4.31 trillion from independent revenues, and ₦1.37 trillion in grants and aid.
Despite these inflows, total expenditure is set at ₦68.32 trillion, with capital expenditure accounting for ₦32.29 trillion, debt servicing at ₦15.81 trillion, recurrent non-debt expenditure at ₦15.43 trillion, and statutory transfers totaling ₦4.80 trillion.
The revision followed a request from President Bola Ahmed Tinubu to increase the 2026 Appropriation Bill by ₦9 trillion, moving the total budget from ₦58.4 trillion to ₦67.4 trillion.
The president cited a $10 per barrel increase in the oil benchmark, which is expected to generate an additional ₦2.592 trillion.
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Lawmakers also pointed to increased contributions from the telecommunications sector following recent tariff adjustments, with MTN Nigeria and Airtel Nigeria projected to contribute a combined ₦874 billion in company income tax during 2026.
To finance the remaining fiscal gap, the National Assembly approved an increase in external borrowing by ₦6.163 trillion.
Other financing sources include ₦2.05 trillion from multilateral and bilateral project-tied loans and ₦189.16 billion expected from asset sales and privatization.
The rising cost of debt is evident, with domestic debt obligations projected at ₦10.16 trillion and foreign debt service at ₦5.36 trillion.
Lawmakers maintained, however, that despite the widened deficit, Nigeria’s debt levels remain within manageable limits.
The revision underscores the government’s reliance on borrowing to fund both development priorities and recurrent obligations amid ongoing fiscal pressures.
