The Senate today revealed that 15.09 trillion naira will be expended to service national debt, with aggregate revenue to fund government’s expenditures projected at 33.19 trillion naira in the 2026 budget.
It also disclosed that aggregate expenditure in the budget is estimated at ₦58.47 trillion, amid a 25.27 trillion naira budget deficit as the federal government continues its “pressing growth, infrastructure, and security needs.”
It also threatened to carry-out a meticulous review of the 2026 budget proposals to prioritise transparency, accountability, and the achievement of measurable value for every expenditure in the 2026 budget, reports Daily Independent.
The upper chamber pointed out that “Budgets must move beyond projections and approvals to tangible outcomes that improve security, infrastructure, livelihoods, and investor confidence. Fiscal discipline, tax reforms and effective implementation are the bridges between policy intent and real impact.
“The 2026 Budget is designed to consolidate macroeconomic stability, improve the business environment, promote job-rich growth and strengthen human capital, while protecting the vulnerable.
“These objectives resonate strongly with the expectations of Nigerians and with the oversight responsibilities of the National Assembly.”
The chairman, Senate committee on Appropriations, Senate Solomon Adeola disclosed this during the public hearing on the 2026 Appropriation Bill which was held at the National Assembly in Abuja.
Senator Adeola in his welcome said expending 15.09 trillion naira is proof of the government’s commitment to honoring its financial obligations and maintaining fiscal credibility.
He further explained that due to ongoing economic reforms of the President Bola Tinubu’s led administration, inflation has eased to about 15%, “foreign reserves exceed US$42 billion, the exchange rate has stabilised, and the downstream petroleum sector is fully market-driven.”
“This engagement comes at a defining moment in Nigeria’s economic journey, as our nation transitions from a period of painful but necessary reforms to one of consolidation, renewed resilience, and shared prosperity,” he added.
The Appropriation committee chairman insisted that, “The 2026 Budget, aptly titled the “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” reflects a deliberate effort to lock in the gains of reform, strengthen economic buffers, and ensure that growth becomes inclusive and sustainable.”
According to him, the government’s reforms have also freed up revenues, resulting in significantly improved FAAC allocations to states and local governments, enabling growth and development at sub-national levels.
While outlining the administration’s reform agenda to cover exchange rate unification, downstream petroleum sector deregulation, tax system overhaul and public finance restructuring, the Chairman of the Senate Appropriation committee the red chamber is poised to ensure that the promises of reform are translated into measurable and lasting impact.
Continuing, he listed what he described as “an unprecedented infrastructure drive, with over 440 road projects, more than 2,700 km of highways under construction, and major rail projects advancing, strengthening investor confidence and Nigeria’s growth outlook,” as part of the government’s achievements so far.
In his speech, Senator Adeola explained attention to areas of “utmost priorities” such as defense, infrastructure delivery and provision of qualitative education and health services to the people.
Accordingly, ₦5.41 trillion has been allocated to Defence and Security to strengthen national security architecture and address persistent security challenges, including banditry and terrorism.
These resources, he stressed, are intended to enhance the operational capacity of the armed forces and security agencies, improve intelligence-led policing, and support coordinated security interventions aimed at safeguarding lives, property, and economic activities across the country.
In the meantime, ₦3.56 trillion has been allocated to the infrastructure to accelerate investments in critical areas such as transportation, energy, and public works.
Senator Adeola said “these investments are aligned with the government’s objective of promoting job-rich growth and strengthening Nigeria’s competitiveness as an attractive investment destination.”
The education sector received ₦3.52 trillion, with the health sector gaining approximately ₦2.48 trillion in a move which the Chairman of the Senate Appropriation committee said, signals a strengthened focus on improving healthcare delivery systems, enhancing access to essential health services, reducing maternal and child mortality, and reinforcing health security and preparedness.
He pointed out that these investments are central to building a healthier and more productive population capable of supporting sustainable economic growth and national development.
According to him, the allocations to sectors will enhance security outcomes, unlock private investment, create new jobs, improve productivity, and raise the quality of life for Nigerians.
“The central theme of this Public Hearing — “From Budget to Impact” —captures the fundamental challenge of public finance management in Nigeria.
“In furtherance of these objectives, it is imperative to highlight that the Executive has predicated the realization of the 2026 budget estimates on the following key macroeconomic assumptions:
“Inflation rate is projected at 16.5% in 2026, reflecting the combined effects of sustained monetary tightening, improved food supply conditions and ongoing structural reforms.
“The exchange rate is expected to stabilize at ₦1,400 to US$1, supported by continued foreign exchange market reforms and improved external inflows.
“Crude oil production is projected at 1.84 million barrels per day (mbpd), based on realistic assessments of production capacity and security conditions in oil-producing areas.
“The benchmark oil price is conservatively set at US$64.85 per barrel, taking into account prevailing global oil market uncertainties.
“Given the importance of these macroeconomic variables to the successful implementation of the 2026 Budget, the Appropriations Committee will engage relevant Ministries, Departments and Agencies (MDAs), as well as other critical stakeholders, to assess the feasibility and robustness of these assumptions.
“Where these assumptions are retained in the 2026 Budget, the Committee will undertake sustained and rigorous oversight throughout the fiscal year to ensure that appropriate policy actions are taken to support their realization and to guarantee effective budget implementation.
“In the 2026 Budget proposal, aggregate revenue available to fund government expenditure is projected at ₦33.19 trillion, while aggregate expenditure is estimated at ₦58.47 trillion. This results in a budget deficit of ₦25.27 trillion, reflecting the Federal Government’s effort to balance fiscal consolidation objectives with pressing growth, infrastructure, and security needs.
“A disaggregation of the proposed aggregate expenditure of ₦58.47 trillion, indicates that debt service obligation is pegged at ₦15.90 trillion, reflecting Government’s commitment to honoring its financial obligations and maintaining fiscal credibility.
“This allocation reflects the federal government’s disciplined approach to servicing legacy multilateral, bilateral and Eurobond obligations, inherited from previous administrations, thereby preserving Nigeria’s zero-default record and strengthening the country’s sovereign credit standing.
“Recurrent (non-debt) expenditure is maintained at ₦15.25 trillion, while capital expenditure is allocated ₦23.21 trillion.
“The substantial capital allocation underscores the Government’s strong commitment to infrastructure development and productivity-enhancing investments.
“At the same time, the overall expenditure profile highlights the importance of deepening tax reforms, broadening the revenue base, plugging leakages, and pursuing short- and medium-term measures to improve spending efficiency.
“Notwithstanding prevailing fiscal pressures, I remain confident that the administration of His Excellency, President Bola Ahmed Tinubu, GCFR, is firmly on course in addressing the revenue, debt, and structural challenges that pre-dated the current administration.
“Recent positive developments in fiscal reforms, gradual improvements in oil sector performance, infrastructure delivery, and security conditions across parts of the country provide renewed optimism that Nigeria is on the path of consolidation of economic gains and shared prosperity for all,” the Senate maintained.
