•Tinubu and foreign loans
The federal government has increased its planned borrowing for 2026 by N11.31 trillion to N29.20 trillion, from an earlier projection of N17.89 trillion contained in the 2026 Abridged Budget Call Circular issued in December 2025.
The hike is contained in the 2026 Appropriation Bill, approved by the National Assembly, and detailed in the House of Representatives Order Paper dated Tuesday, March 31, 2026, as well as in the budget schedule attached to the proposal, reports Channels TV.
Fiscal deficit is now estimated at N31.46 trillion, as highlighted by the revised borrowing plan.
While revenues are expected to reach N36.87 trillion, total government expenditure is projected at N68.32 trillion.
Other financing sources include N189.16 billion expected from asset sales and privatisation, and N2.05 trillion from multilateral and bilateral project-tied loans.
Indicating a significant upward revision in both deficit and financing needs, the earlier borrowing estimate of N17.89 trillion was based on a lower deficit projection of N20.12 trillion.
Supported by federation revenues, independent income, and earnings from government-owned enterprises, government revenue for 2026 is projected at N36.87 trillion.
A breakdown shows that N4.31 trillion is expected from independent revenues, N5.85 trillion from government enterprises, and N25.92 trillion from federation revenues.
Additional expected revenue inflows include N1.37 trillion in grants and aid, alongside N300 billion from special funds.
On the spending side, debt service is one of the largest components in the budget, projected at N15.81 trillion, while recurrent non-debt expenditure is estimated at N15.43 trillion.
Capital expenditure is projected at N32.29 trillion, as statutory transfers are expected to total N4.80 trillion.
Domestic debt service will account for N10.16 trillion, while foreign debt obligations are projected at N5.36 trillion, highlighting the rising cost of servicing both local and external borrowings.
In a letter addressed to the Senate President, Godswill Akpabio, and read at plenary last Tuesday, President Bola Tinubu had requested the Senate’s approval to increase the 2026 Appropriation Bill by N9 trillion, raising the total budget from N58.4 trillion to N67.4 trillion.
The request was based on a key component- a $10 per barrel increase in the oil benchmark, expected to generate about N2.592 trillion in additional revenue.
The lawmakers also cited stronger contributions from the telecommunications sector, riding on the back of recent tariff adjustments and broader policy reforms.
According to their projections, MTN Nigeria could generate N724 billion in company income tax in 2026, while Airtel Nigeria is expected to contribute N150 billion, bringing total additional revenue from the sector to N874 billion.
However, despite these revenue-boosting measures, the lawmakers approved an increase in external borrowing by N6.163 trillion to bridge the shortfall.
They noted that the debt level remains within what they described as manageable limits.
