By Joke Kujenya
THE FEDERAL Executive Council (FEC) has approved the 2026 Appropriation Bill, clearing the way for President Bola Tinubu to present the budget proposal to a joint session of the Senate and the House of Representatives.
President Tinubu convened an emergency Council meeting at the State House, Abuja, to consider a single-item memorandum on the 2026 budget estimates ahead of their formal presentation to the National Assembly (NASS).
“I am here today to fulfil an essential constitutional obligation by presenting the 2026 Appropriation Bill to this esteemed Joint Session of the National Assembly for your consideration,” the president told lawmakers.
He described the budget as a defining moment in the national journey of reform and transformation, noting that over the last two and a half years, his government had methodically confronted long-standing structural weaknesses, stabilised the economy, rebuilt confidence, and laid a durable foundation for a more resilient and dynamic Nigeria.
The president acknowledged that the reforms had not been painless. Families and businesses faced pressure, established systems were disrupted, and budget execution had been tested.
“Yet I am here today to assure Nigerians that their sacrifices are not in vain. The path of reform is seldom smooth, but it is the surest route to lasting stability and shared prosperity,” he said.
President Tinubu presented the 2026 Budget under the theme “Budget of Consolidation, Renewed Resilience and Shared Prosperity”.
He said it reflected the administration’s determination to lock in macroeconomic stability, deepen competitiveness, and ensure growth translated into jobs, rising incomes, and improved quality of life for Nigerians.
While acknowledging the improving global outlook, the president said the budget aimed to strengthen the Nigerian economy for the benefit of all citizens.
He highlighted measurable results from ongoing reforms, including 3.98 percent economic growth in the third quarter of 2025, up from 3.86 percent in the same period in 2024.
Inflation moderated for eight consecutive months, with headline inflation falling to 14.45 percent in November 2025, down from 24.23 percent in March.
Oil production improved through enhanced security, technology deployment, and sector reforms, while non-oil revenues expanded significantly through better tax administration.
Investor confidence returned, reflected in capital inflows, renewed project financing, and stronger private-sector participation. External reserves rose to a seven-year high of approximately US$47 billion, providing over ten months of import cover.
“These outcomes are not accidental or lucky. They are the consequence of our difficult policy choices. Our next objective is to deepen our gains in pursuit of enduring and inclusive prosperity,” he said.
The President reviewed 2025 budget implementation, noting that by the third quarter, revenue reached N18.6 trillion, representing 61 percent of the target, while expenditure was N24.66 trillion, representing 60 per cent of the target.
Following the extension of the 2024 capital budget execution to December 2025, N2.23 trillion had been released for 2024 capital projects by June 2025.
Only N3.10trillion, or about 17.7 percent of the 2025 capital budget, had been released as of Q3, reflecting the priority on completing 2024 capital projects.
President Tinubu emphasised that 2026 would be a year of stronger discipline in budget execution.
He issued directives to the Honourable Minister of Finance and Coordinating Minister of the Economy, the Honourable Minister of Budget and Economic Planning, the Accountant-General of the Federation, and the Director-General of the Budget Office to ensure strict adherence to the appropriated details and timelines.
Improved revenue performance is expected through the new National Tax Acts and ongoing reforms in the oil and gas sector.
Heads of government-owned enterprises have been directed to meet assigned revenue targets, supported by end-to-end digitisation of revenue mobilisation, standardised e-collections, interoperable payment rails, automated reconciliation, data-driven risk profiling, and real-time performance dashboards.
“Nigeria can no longer afford leakages, inefficiencies, or underperformance in strategic agencies. Every institution must play its part,” the president said.
The 2026 Budget is guided by four objectives: consolidating macroeconomic stability, improving the business and investment environment, promoting job-rich growth and reducing poverty, and strengthening human capital development while protecting the vulnerable.
The budget aims to spend with purpose, manage debt with discipline, and pursue broad-based, sustainable growth.
Key aggregates include expected total revenue of N34.33trillion, projected total expenditure of N58.18trillion, including N15.52 trillion for debt servicing.
Recurrent non-debt expenditure is N15.25 trillion, capital expenditure is N26.08trillion, and the budget deficit is projected at N23.85trillion, representing 4.28 per cent of GDP.
The 2026–2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper sets parameters based on a conservative crude oil benchmark of US$64.85 per barrel, crude oil production of 1.84 million barrels per day, and an exchange rate of N1,400 to the US Dollar.
Sectoral allocations reflect national priorities: defence and security N5.41 trillion, infrastructure N3.56 trillion, education N3.52 trillion, and health N2.48 trillion.
National security remains the foundation of development, with investments in Armed Forces modernisation, intelligence-driven policing, joint operations, border security, technology-enabled surveillance, and community-based peacebuilding.
The administration intends to enhance the fighting capability of security agencies with personnel expansion and cutting-edge hardware.
The budget strengthens investments in human capital, including education and healthcare.
Over 788,000 students have benefited from the Nigerian Education Loan Fund in partnership with 229 tertiary institutions nationwide.
Healthcare investment represents six per cent of total budget size, net of liabilities, supplemented by over US$500 million from international partners for health interventions.
Infrastructure and economic productivity priorities include transport and energy infrastructure, port modernisation, agricultural reforms, and strategic investments to unlock private capital.
Agricultural initiatives focus on input financing, mechanisation, irrigation, climate-resilient agriculture, storage, processing, and agro-value chains.
The Bank of Agriculture plans to mechanise through seven regional hubs, provide affordable finance, and support cultivation of one million hectares, creating hundreds of thousands of jobs.
Procurement reforms initiated in November of the previous year aim to enhance efficiency, reduce processing times for government contracts, and enforce accountability against erring contractors.
The Nigeria First Policy encourages use of domestic products and local companies, promoting self-sufficiency, job creation, and reduced import dependency.
President Tinubu outlined three practical commitments for 2026: better revenue mobilisation through efficiency and compliance, better spending by prioritising projects that can be completed and measured, and better accountability through strengthened procurement discipline, monitoring, and reporting.
“We will build trust by matching our words with results, and our allocations with outcomes,” he said.
Following the FEC approval, the Director-General of the Budget Office, Dr Tanimu Yakubu, said the approved 2026 budget has aggregate expenditure of N58.47 trillion, a six per cent increase over the 2025 estimate.
The total expenditure framework includes projected spending by government-owned enterprises of N4.98 trillion and N1.37 trillion for grants and donor-funded projects.
Statutory transfers are estimated at N4.1 trillion, while debt service obligations total N15.52 trillion, including N3.39 trillion for the sinking fund to retire maturing local debts.
Personnel costs, including pensions, amount to N10.75 trillion, with N1.02 trillion allocated to government-owned enterprises. Overhead costs are estimated at N2.22 trillion.
The budget proposes capital expenditure of N25.68 trillion, 1.8 per cent lower than the 2025 provision.
Capital allocations include N11.3 trillion for ministries, departments, and agencies, N2.05 trillion for multilateral and bilateral loan-funded projects, and N1.8 trillion representing the development levy component.
Yakubu said the 2026 budget balances macroeconomic stabilisation with development imperatives, and is based on conservative assumptions for oil price, exchange rate, and dividends from government-owned enterprises.
Projected revenues are expected to decline year-on-year, but non-oil revenues now account for approximately two-thirds of total government receipts, with corporate income tax, value-added tax, customs duties, and independent revenues serving as main fiscal anchors.
Growth in expenditure is driven largely by debt servicing, wages, and pensions, while the projected fiscal deficit reflects structural pressures. Financing will rely on domestic borrowing, complemented by concessional loans from multilateral development institutions.
President Tinubu presented the budget proposal to the National Assembly, pegging capital recurrent expenditure at N15.25 trillion, capital expenditure at N26.08 trillion, and a crude oil benchmark of US$64.85 per barrel.
He described the budget proposal as not merely accounting lines but as a statement of national priorities, asserting commitment to fiscal sustainability, debt transparency, and value-for-money spending as the President’s presentation came amid heightened insecurity in parts of the country.
He reiterated that national security remains central to development, outlining plans for Armed Forces modernisation, intelligence-driven policing, joint operations, border security, technology-enabled surveillance, and community-based peacebuilding.
“We will invest in security with clear accountability for outcomes because security spending must deliver security results,” he concluded, adding that priorities include boosting personnel and procuring cutting-edge platforms.
FULL TEXT OF 2026 BUDGET SPEECH
“BUDGET OF CONSOLIDATION, RENEWED RESILIENCE AND SHARED PROSPERITY”
Presented by:
His Excellency, Asiwaju Bola Ahmed Tinubu, GCFR
President, Federal Republic of Nigeria, At the Joint Session of the National Assembly, Abuja, Friday, 19 December 2025
PROTOCOLS
o Distinguished Senate President,
o Rt. Honourable Speaker and Honourable Members of the House of Representatives,
o Distinguished Senators and Honourable Members of the National Assembly,
o Fellow Nigerians,
1. I am here today to fulfil an essential constitutional obligation by presenting the 2026 Appropriation Bill to this esteemed Joint Session of the National Assembly for your consideration.
2. This 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.
3. 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. I acknowledge these difficulties plainly. Yet, I am here, today, to assure Nigerians that their sacrifices are not in vain. The path of reform is seldom smooth, but it is the surest route to lasting stability and shared prosperity.
4. Today, I present a Budget that consolidates our gains, strengthens our resilience, and takes this country from out of the dark tunnel of hopelessness, from survival to growth.
5. The 2026 Budget is themed: “Budget of Consolidation, Renewed Resilience and Shared Prosperity”. It reflects our determination to lock in macroeconomic stability, deepen competitiveness, and ensure that growth translates into decent jobs, rising incomes, and a better quality of life across for every Nigerian.
6. Mr. Chairman, Leaders of the National Assembly, while the global outlook continues to improve, this Budget aims to further strengthen our Nigerian economy to benefit all our citizens.
7. I am encouraged that our reform efforts are already yielding measurable results:
1) Our economy grew by 3.98 per cent in Q3 2025, up from 3.86 per cent in Q3 2024.
2) 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 improving supply responses, we expect the deflationary trend to persist over the 2026 horizon, barring major supply shocks.
3) Oil production has improved, supported by enhanced security, technology deployment, and sector reforms.
4) Non‑oil revenues have expanded significantly through better tax administration.
5) Investor confidence is returning, reflected in capital inflows, renewed project financing, and stronger private‑sector participation.
6) Our external reserves rose to a 7‑year high of about US47 billion dollars as of last month, providing over 10 months of import cover and a more substantial buffer against shocks.
8. These outcomes are not accidental or lucky. They are the consequence of our difficult policy choices. Our next objective is to deepen our gains in pursuit of enduring and inclusive prosperity.
9. Mr. Chairman, Distinguished Members, our 2025 budget implementation faced the realities of transition and competing execution demands. As of Q3 2025, we recorded:
• 18.6 trillion naira in revenue — representing 61% of our target; and
• 24.66 trillion naira in expenditure — representing 60% of our target.
10. Following the extension of the 2024 capital budget execution to December 2025, a total of 2.23 trillion naira was released for the implementation of 2024 capital projects as of June 2025.
11. While fiscal challenges persisted, the government met its key obligations. However, only 3.10 trillion naira — about 17.7% of the 2025 capital budget — was released as of Q3, reflecting the emphasis on completing priority 2024 capital projects during the transition period.
12. Let me be clear: 2026 will be a year of stronger discipline in budget execution. I have issued directives to the Honourable Minister of Finance and Coordinating Minister of the Economy, the Honourable Minister of Budget and Economic Planning, the Accountant‑General of the Federation, and the Director‑General of the Budget Office of the Federation to ensure that the 2026 Budget is implemented strictly in line with the appropriated details and timelines.
13. 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.
14. I have also provided clear and direct guidance regarding Government‑Owned Enterprises. Heads of all agencies have been directed to meet their assigned revenue targets. To support this, we will deploy end‑to‑end digitisation of revenue mobilisation — standardised e‑collections, interoperable payment rails, automated reconciliation, data‑driven risk profiling, and real‑time performance dashboards — so leakages are sealed, compliance is verifiable, and remittances are prompt. These targets will form core components of performance evaluations and institutional scorecards. Nigeria can no longer afford leakages, inefficiencies, or underperformance in strategic agencies. Every institution must play its part.
15. Mr Chairman and fellow Nigerians, the 2026 Budget is guided by four clear objectives:
1) Consolidate macroeconomic stability;
2) Improve the business and investment environment;
3) Promote job‑rich growth and reduce poverty; and
4) Strengthen human capital development while protecting the vulnerable.
16. In short: we will spend with purpose, manage debt with discipline, and pursue broad-based, sustainable growth.
17. Distinguished Members, the 2026 Federal Budget is anchored on realism, prudence, and growth.
18. The key aggregates are as follows:
1) Expected total revenue is 34.33 trillion naira.
2) Projected total expenditure is 58.18 trillion naira, including 15.52 trillion naira for debt servicing.
3) Recurrent (non‑debt) expenditure is 15.25 trillion naira.
4) Capital expenditure will be 26.08 trillion.
5) The Budget deficit is expected to be 23.85 trillion naira, representing 4.28% of GDP.
19. These numbers are not mere accounting lines. They are a statement of national priorities. We remain firmly committed to fiscal sustainability, debt transparency, and value‑for‑money spending.
20. The 2026–2028 Medium‑Term Expenditure Framework and Fiscal Strategy Paper sets the parameters for this Budget. Our projections are based on:
1) a conservative crude oil benchmark of US64.85 dollars per barrel;
2) crude oil production of 1.84 million barrels per day; and
3) an average exchange rate of 1,400 naira to the US Dollar for the 2026 fiscal year.
21. We will continue to reduce waste, strengthen controls, and ensure that every naira borrowed or spent delivers measurable public value.
22. Our allocations reflect the Renewed Hope Agenda and the practical needs of Nigerians. Key sectoral provisions include:
1) Defence and security: 5.41 trillion naira
2) Infrastructure: 3.56 trillion naira
3) Education: 3.52 trillion naira
4) Health: 2.48 trillion naira
23. These priorities are interlinked. Without security, investment will not thrive. Without educated and healthy citizens, productivity will not rise. Without infrastructure, jobs and enterprises will not scale. This Budget is, therefore, designed to provide a single, coherent programme of national renewal.
A. National Security and Peacebuilding
24. National Security remains the foundation of development. The 2026 Budget strengthens support for:
• modernisation of the Armed Forces;
• intelligence‑driven policing and joint operations;
• border security and technology‑enabled surveillance; and
• community‑based peacebuilding and conflict prevention.
25. We will invest in security with clear accountability for outcomes — because security spending must deliver results. To secure our country, our priority will remain on increasing the fighting capability of our armed forces and other security agencies and boosting the effectiveness of our fighting forces with cutting-edge equipment and other hardware.
26. We will usher in a new era of criminal justice. We will show no mercy to those who commit or support acts of terrorism, banditry, kidnapping for ransom and other violent crimes.
27. Our administration is resetting the national security architecture and establishing a new national counterterrorism doctrine — a holistic redesign anchored on unified command, intelligence gathering, community stability, and counter – insurgency. This new doctrine will fundamentally change how we confront terrorism and other violent crimes.
28. Under this new architecture, any armed group or gun-wielding non-state actors operating outside state authority will be regarded as terrorists.
29. Bandits, militias, armed gangs, armed robbers, violent cults, forest-based armed groups and foreign-linked mercenaries will all be targeted. We will go after all those who perpetrate violence for political or sectarian ends, along with those who finance and facilitate their evil schemes.
B. Human Capital Development: Education and Health
30. No nation can grow beyond the quality of its people. The 2026 Budget strengthens investments in education, skills, healthcare, and social protection.
31. In education, we are expanding access to higher education through the Nigerian Education Loan Fund. Over seven hundred and eighty eight thousand students have been supported, in partnership with two hundred and twenty nine tertiary institutions nationwide.
32. In healthcare, I am pleased to highlight that investment in healthcare is 6 per cent of the total budget size, net of liabilities.
33. We also appreciate the support of international partners. Recent high‑level engagements with the Government of the United States have opened the door to over 500 million United States dollars for health interventions across Nigeria. We welcome this partnership and assure Nigerians that these resources will be deployed transparently and effectively.
C. Infrastructure and Economic Productivity
34. Across the nation, projects of all shapes and sizes are moving from vision to reality. These include transport and energy infrastructure, port modernisation, agricultural reforms, and strategic investments to unlock private capital.
35. We will take decisive steps to strengthen agricultural markets. Food security shall remain a national priority. The 2026 Budget focuses on input financing and mechanisation; irrigation and climate‑resilient agriculture; storage and processing; and agro‑value chains.
36. These measures will reduce post‑harvest losses, improve incomes for small holders, deepen agro‑industrialisation, and build a more resilient, diversified economy.
37. In 2026, the Bank of Agriculture plans to plant confidence back into our soil; mechanising through seven regional hubs, protecting harvests with fair prices and substantial reserves, providing affordable finance to millions of small holders and growing export value. Under the plan, Nigerian farmers will cultivate one million hectares, create hundreds of thousands of jobs, and prove that prosperity can rise through better use of our God given land.
D. Procurement
38. Starting in November last year, the government has embarked upon a comprehensive framework of procurement reforms. These reforms have enhanced efficiency and generated significant cost savings for the government, resulting in resulting in reduced processing times for Government contracts and better enforcement procedures directed against erring contractors and government officials.
39. Our Nigeria First Policy has been established to encourage self-sufficiency and sustainable growth within Nigeria by promoting domestic products and businesses. By mandating that all Ministries, Departments, and Agencies (MDAs) consider Nigerian-made goods and local companies as their primary option, the policy aims to support local industries, create job opportunities, and reduce dependency on imported items. This bold new approach is expected to enhance the competitiveness of Nigerian enterprises, foster innovation, and ultimately contribute to the country’s overall economic development.
40. Distinguished Members and fellow Nigerians, the most significant budget is not the one we announce. It is the one we deliver.
41. Therefore, 2026 will be guided by three practical commitments:
1) Better revenue mobilisation through efficiency, transparency, and compliance.
2) Better spending by prioritising projects that can be completed, measured, and felt by citizens.
3) Better accountability through strengthening of procurement discipline, monitoring, and reporting.
42. We will build trust by matching our words with results, and our allocations with outcomes.
43. Distinguished Members of the National Assembly, fellow Nigerians, the 2026 Budget is not a budget of promises; it is a Budget of consolidation, renewed resilience and shared prosperity. It builds on the reforms of the past two and a half years, addresses emerging challenges, and sets a clear path towards a more secure, more competitive, more equitable, and more hopeful Nigeria.
44. I commend the people of this country for their understanding and resilience. My administration remains committed to easing the burdens of the transition to a more stable and prosperous nation. We promise to make sure that the benefits of reform reach households and communities across the Federation.
45. In united purpose between the Executive and the Legislature; and with the resilience of the Nigerian people, we will deliver the full promise of the Renewed Hope Agenda.
46. It is, therefore, with great pleasure that I lay before this distinguished Joint Session of the National Assembly; the 2026 Appropriation Bill of the Federal Republic of Nigeria, titled: “Budget of Consolidation, Renewed Resilience and Shared Prosperity”. I seek your partnership in charting the nation’s fiscal course for the coming year.
47. May God bless the Federal Republic of Nigeria.
48. Thank you.
Bola Ahmed Tinubu, GCFR
President, Commander-in-Chief of The Armed Forces,
Federal Republic of Nigeria.
