Nigeria Approves ₦68.3 Trillion Budget for 2026

The National Assembly of Nigeria approved a ₦68.3 trillion budget for the year 2026, which includes a ₦9.3 trillion increase from the previous budget of ₦58.47 trillion submitted in December 2025. This increase aims to address emerging national priorities and fund critical sectors.

The budget allocates ₦5.71 trillion for legacy capital obligations carried over from the 2025 budget. The federal government plans to spend ₦478.6 billion on equity contributions for light rail projects in Lagos, Kano, Kaduna, and Ogun states.

The breakdown shows ₦32.29 trillion for capital projects, ₦15.43 trillion for recurrent expenditure, ₦15.8 trillion for debt servicing, and ₦4.8 trillion for statutory transfers. Despite the high debt servicing allocation, Nigeria's debt-to-GDP ratio remains at 36%, which is relatively sustainable compared to other countries.

The budget's implementation is expected to begin immediately after President Tinubu signs the appropriations bill, with a shift in the budget cycle from January-December to April-March. However, challenges remain due to election-year pressures and historical revenue target misses.