FG Raises 2026 Borrowing Plan By ₦11.31trn To ₦29.20trn

06 April, 2026 | News

Nigeria’s Federal Government has significantly increased its borrowing plan for 2026, raising it by ₦11.31 trillion to ₦29.20 trillion, up from the earlier projection of ₦17.89 trillion outlined in the 2026 Abridged Budget Call Circular.

The revised figures are contained in the 2026 Appropriation Bill approved by the National Assembly, reflecting a sharp rise in the country’s fiscal deficit, now estimated at ₦31.46 trillion. This marks a notable jump from the previous deficit projection of ₦20.12 trillion.

Under the new plan, total government expenditure is projected at ₦68.32 trillion, while expected revenue stands at ₦36.87 trillion. The revenue projections are supported by federation earnings, independent income, and proceeds from government-owned enterprises.

A breakdown shows that ₦25.92 trillion will come from federation revenues, ₦5.85 trillion from government enterprises, and ₦4.31 trillion from independent revenues. Additional inflows include ₦1.37 trillion in grants and aid, as well as ₦300 billion from special funds.

To bridge the funding gap, the government also plans to generate ₦189.16 billion through asset sales and privatisation, alongside ₦2.05 trillion from multilateral and bilateral project-tied loans.

On the expenditure side, debt servicing remains a major burden, estimated at ₦15.81 trillion. Recurrent non-debt spending is projected at ₦15.43 trillion, while capital expenditure is set at ₦32.29 trillion. Statutory transfers are expected to total ₦4.80 trillion.

Domestic debt servicing will account for ₦10.16 trillion, with foreign debt obligations estimated at ₦5.36 trillion, highlighting the growing cost of managing both local and external debts.

In a related development, Bola Ahmed Tinubu had earlier requested the National Assembly to increase the 2026 budget by ₦9 trillion, raising it from ₦58.4 trillion to ₦67.4 trillion. The proposal was partly driven by a $10 increase in the oil benchmark, expected to boost revenue.

Lawmakers also projected increased tax contributions from telecom giants such as MTN Nigeria and Airtel Nigeria.

Despite these expected gains, the government approved additional external borrowing to cover the deficit, maintaining that the overall debt level remains within manageable limits.