Nigeria's 2026 Fiscal Deficit Exceeds Legal Limit

According to a report by the civic technology organization Budgit, Nigeria's fiscal deficit for the 2026 Appropriation Act exceeds the legal limit prescribed by the Fiscal Responsibility Act. The report indicates that the federal government's projected revenue is ₦36.87 trillion against total expenditure of ₦68.32 trillion, resulting in a financing gap of ₦31.45 trillion, which is equivalent to 6.41% of the country's Gross Domestic Product (GDP).

This deficit doubles the three percent ceiling stipulated by the Fiscal Responsibility Act, raising fresh concerns about the sustainability of Nigeria's public finances. The report criticizes the ambitious revenue projections, warning that they may worsen the country's debt burden.

It also highlights that the government expects to finance 53.9% of proposed expenditure through borrowing, questioning the credibility of the revenue projections. Furthermore, the report notes that poverty levels have worsened, with 56 million Nigerians living in poverty as of 2023, despite recent macroeconomic reforms.