Nigeria Increases 2026 Borrowing Plan to N29 Trillion

The Nigerian government has revised its borrowing plan for 2026, increasing it to N29 trillion from the previously projected N17.89 trillion. This significant adjustment is attributed to rising fiscal pressures and a higher spending target, as outlined in the 2026 appropriation bill approved by the National Assembly.

The total estimated expenditure for Nigeria is now N68.32 trillion, with projected revenue at N36.87 trillion, resulting in a budget deficit of N31.46 trillion. The government plans to finance this deficit primarily through debt, with asset sales and privatization expected to contribute only N189.16 billion.

Multilateral and bilateral loans for specific projects are anticipated to bring in N2.05 trillion. Despite expected revenue inflows from various sources, including N25.92 trillion from federal revenue, the government faces challenges as expenditures continue to exceed revenues.

Debt servicing alone is projected at N15.81 trillion. Former Vice President Atiku Abubakar has criticized the government's borrowing strategy, warning that excessive borrowing could jeopardize the country's future.