Nigerian Senate Defends Borrowing for N25.91 Trillion Deficit in 2026 Budget Amid Power Subsidy Exit Push

The Nigerian Senate has justified the need for borrowing to cover a N25.91 trillion deficit in the 2026 Appropriation Bill, citing revenue constraints and significant development requirements. Concerns were raised by Jumoke Oduwole from the Ministry of Industry, Trade, and Investment regarding the inadequacy of proposed capital allocations for 2026.

Solomon Adeola emphasized that borrowing should be focused on productive uses to benefit citizens. The budget proposal includes a deficit of N25.27 trillion, with debt servicing expected to consume N15.90 trillion.

The Senate advocates for the removal of power subsidies to reduce fiscal burdens and suggests a mix of external financing, asset sales, and public-private partnerships to fund infrastructure projects. The government aims to align the budget with its priorities and ongoing reforms to maximize resource efficiency.

Experts warn that Nigeria's rising deficit must be addressed urgently to ensure fiscal sustainability.