2026 budget: Can it bridge Nigeria’s wealth gap?
By Naomi Sharang, News Agency of Nigeria (NAN)
President Bola Tinubu recently presented the 2026 Appropriation Bill of N58.18 trillion, christened: ‘Budget of Consolidation, Renewed Resilience and Shared Prosperity’, to the joint session of the National Assembly.
Analysts say that the budget appears to have stood out as a defining statement of the Tinubu administration’s economic direction and political priorities.
Coming after years of tough reforms and global economic uncertainty, the budget, the analysts say, was framed as a bridge between stabilisation and sustainable growth.
To them, the budget, at its core, seeks to consolidate earlier policy choices, particularly in fiscal discipline, revenue mobilisation and structural reforms.
“The Federal Government doubled down on efforts to strengthen public finances, reduce waste and ensure that scarce resources were directed towards the sectors with the greatest impacts,” one of the analysts said.
Officials also described the budget as one focused less on bold experimentation and more on deepening reforms already underway.
“In a year marked by lingering inflationary pressures, climate-related challenges and global economic headwinds, the budget prioritised economic buffers and social stability.
“Increased attention was given to infrastructure, food security, healthcare and education, with the aim of helping households and businesses better withstand imminent shocks,” they stated.
Key highlights of the 2026 appropriation bill, according to Tinubu, include a projected revenue of N34.33 trillion and expenditure of N58.18 trillion as well as N15.52 trillion for debt servicing.
While the recurrent non‑debt expenditure was pegged at N15.25 trillion, capital expenditure was put at N26.08 trillion and deficit, N23.85 trillion, at 4.28 per cent of GDP rate.
According to the president, sectoral allocations have Defence and Security at N5.41 trillion; Infrastructure, N3.56 trillion; Education, N3.52 trillion and Health, N2.48 trillion.
While emphasising security as the bedrock of development, he said that the N5.41 trillion allocation to the sector was key to modernising the armed forces, enhancing intelligence‑driven policing and securing the nation’s borders.
Tinubu also said that the Nigerian Education Loan Fund had supported more than 418,000 students in 229 tertiary institutions, while health spending accounts for six per cent of the total budget net of liabilities.
“The budget represents a defining moment in our national journey of reform and transformation.
“Over the last two-and-a-half years, my government has methodically confronted long‑standing structural weaknesses, stabilised our economy, rebuilt confidence and laid a durable foundation for the construction of a more resilient, inclusive and dynamic Nigeria.
“Though necessary, the reforms have not been painless. Families and businesses have faced pressure; established systems have been disrupted; and budget execution has been tested,” he had told the national assembly members.
The president noted that the reforms were already yielding measurable results, with the economy having grown by 3.98 per cent in the third quarter of the year, up from 3.86 per cent in the third quarter of 2024.
“Inflation has moderated for eight consecutive months, with headline inflation declining to 14.45 per cent in November 2025, from 24.23 per cent in March 2025.
“With stabilising food and energy prices, tighter monetary conditions and improved supply responses, we expect the deflationary trend to persist over the 2026 horizon, barring major supply shocks”.
“All multiple budget implementations would end in March 2026 and from April, Nigeria would operate on a single budget, backed by a single revenue cycle.
“Avoiding abandoned projects, unpaid contractual obligations and running a multiple budget, both inherited and of fulfilled mandates, is a problem staring the nation.
“So we are terminating the habit of running through a budget on one inflow.
“By March 31, 2026, all capital liabilities from previous years will be fully funded and closed. From April, Nigeria will operate on a single budget, backed by a single revenue cycle.
“No overlaps, no excuses and no rollover cultures,” he said, adding: “We expect improved revenue performance through the new National Tax Acts and the ongoing reforms in the oil and gas sector.
“Reforms designed not merely to raise revenue, but to drive transparency, efficiency, fairness and long‑term value in our fiscal architecture”.
The Senate President, Godswill Akpabio, acknowledged the economic and social pressures Nigerians had faced over the past years.
Akpabio listed the economic pressures to include rising living costs, insecurity and concerns among young people about opportunities and fairness.
Nigeria, he said, had historically confronted adversity with resilience rather than retreat.
Akpabio stated that the 10th Senate had recorded one of the highest levels of legislative outputs in the country’s history over the past years.
He said that the upper chamber had passed landmark bills on security, economic reforms, governance, judicial administration, electoral integrity, infrastructure development and social protection.
The Speaker of House of Representatives, Abbas Tajudeen, while also reflecting on the outgoing fiscal year, said it marked a period of regained stability and renewed confidence, but that it also offered some important lessons.
He noted that volatility in global oil markets had exposed the risks of overly optimistic assumptions on crude oil prices and exchange rates, reinforcing the need for realism, discipline and revenue diversification in budgeting.
These lessons, he said, had shaped the 2026 budget, which he described as more deliberate, realistic and results-oriented.
Citing data from the National Bureau of Statistics (NBS), Tajudeen said that Nigeria recorded positive growth throughout 2025.
“This is with real GDP growth approaching four per cent, placing the country among the stronger-performing large economies in Sub-Saharan Africa,” he said.
To the Minister of Information and National Orientation, Mohammed Idris, the 2026 budget is designed to move beyond promises to practical implementation.
He said that unlike previous budgets that often remained aspirational, the 2026 document directly addressed the major concerns of Nigerians, particularly insecurity, welfare and economic stability.
Idris noted that security had remained government’s foremost priority, reflecting in what he described as a “significant allocation” to the sector.
Leader of the Senate, Opeyemi Bamidele, while presenting the Appropriation Bill for second reading, said the structure of the budget reflected deliberate prioritisation, with capital spending emerging as the largest component of discretionary expenditure.
He said that the N23.214 trillion capital allocation targeted critical growth-driving sectors, including transport infrastructure, power and energy, agriculture, industrial development, housing and digital economy.
“As the president emphasised, sustainable growth cannot be achieved without addressing infrastructure deficits and expanding the productive capacity of the economy,” Bamidele said.
He added that the spending plan was designed to stimulate private investment, create jobs and strengthen food and energy security.
Deputy Senate Leader, Sen. Lola Ashiru, pointed to the N5.4 trillion earmarked for security as well as substantial allocations to infrastructure, education and health as evidence of a coordinated strategy to strengthen the economy and improved living standards.
According to him, these sectors are inter-connected and essential for building a robust Nigeria.
Contributing to the debate, Sen. Adamu Aliero (APC-Kebbi) described the N23 trillion for capital projects as impressive and unprecedented since the inception of the 10th national assembly.
“The over N5 trillion on security is also commendable. Education allocation is also good and my prayer is that the funds be released for proper implementation,” the lawmaker said.
The Chairman, Senate Committee on Finance, Sen. Sani Musa, said that the debt service provision, though large, was critical for restoring investor confidence, especially as the country approaches an election cycle.
“Now that we are going into a political period, the allocation of N15.9 trillion is for servicing our debts, which will further restore confidence between Nigeria and its development partners,” he said.
Musa expressed optimism that 2026 would be better with a single budget.
How far can the fiscal document, tagged: ‘Budget of Consolidation, Renewed Resilience and Shared Prosperity’, go in serving as the turning point that Nigeria needs? Experts say the next few months will tell.(NANFeatures)
***If used, credit the News Agency of Nigeria and the writer.