• Nigeria’s 2026 budget rises to $49.4 billion to fund infrastructure, public services, and carry-over commitments;

•  $7.7 billion of unexecuted 2025 projects rolls into 2026;

• The government expects higher oil prices, telecom revenue, and external borrowing to finance the increase.

The Nigerian Senate approved President Bola Tinubu’s request to increase the 2026 national budget by 9 trillion nairas ($6.5 billion), raising total allocations to 68,323 billion nairas ($49.4 billion).

Local media reported that the revision incorporates financial commitments from previous budgets, funds infrastructure projects, strengthens the judiciary, supports the health sector, and prepares for general elections in 2027.

The budget allocates 4,799 billion nairas for statutory transfers, 15,809 billion for debt servicing, 15,427 billion for recurrent expenditures, and 32,287 billion for investments, signaling a strong focus on infrastructure and economic growth.

A significant portion of the increase reflects the rollover of 7,710 billion nairas in unexecuted 2025 investment projects, which were delayed due to revenue shortfalls that affected nearly 70% of planned investments.

The budget introduces new strategic spending, including financing light rail projects across multiple states, feasibility studies for road and rail corridors, 482.76 billion nairas for the health sector, and enhanced judicial capacity to manage election-related disputes.

The government plans to fund the budget expansion through a $10 per barrel rise in the benchmark oil price, additional tax revenue from the telecommunications sector, and 6,163 billion nairas in external borrowing.

Economic Context and Outlook

The measures follow economic reforms, including fuel subsidy removal and naira exchange rate unification, aimed at restoring macroeconomic stability. Finance Minister Wale Edun said these reforms “have created a foundation for sustainable expansion.”

For 2026, the government projects 4.68% GDP growth, driven by lower inflation, improved naira stability, and continued structural reforms. This forecast exceeds the Central Bank of Nigeria’s 4.49% and the World Bank’s 4.4% projections.

After peaking above 33% in 2024, inflation declined to 15.15% in December 2025 and is expected to average around 16.5% in 2026. Currency volatility has eased, with the naira trading below 1,400 per dollar, and gross external reserves reaching $49 billion as of March 30, 2026.

Charlène N’dimon