Experts Warn on Nigeria's N15.8tr Debt Service in 2026 Budget

The 2026 budget of Nigeria, recently signed by President Bola Ahmed Tinubu, totals N68.32 trillion, with a significant allocation of N15.8 trillion for debt servicing. This budget represents a critical fiscal milestone, with nearly 50% of the total expenditure earmarked for capital projects, amounting to N32.2 trillion.

Experts, including economist Prof. Uch Uwalek, have raised concerns regarding the fiscal outlook, emphasizing that the substantial debt service allocation could hinder the deployment of resources for developmental priorities.

The budget also extends the implementation period of the 2025 budget components to June 30, 2026, to avoid disrupting ongoing projects. Dr.

Umar Yakubu, Executive Director at the Center for Fiscal Transparency, noted that overlapping budgets complicate tracking expenditures and weaken investor confidence. The overall budget deficit is projected to exceed N31 trillion, prompting calls for fiscal discipline and a focus on high-impact economic projects to ensure timely fund release and effective implementation.