The Federal Government has raised its projected borrowing requirement for 2026 to N29.20 trillion, reflecting a significant expansion in the proposed budget size and a wider fiscal deficit, according to official documents.
The new borrowing estimate represents an increase of N11.31 trillion from the earlier projection of N17.89 trillion outlined in the 2026 Abridged Budget Call Circular issued in December 2025. The updated figure is contained in the 2026 Appropriation Bill approved by the National Assembly and detailed in the House of Representatives’ Order Paper dated March 31, 2026.
Total government expenditure for 2026 is now projected at N68.32 trillion, while expected revenues stand at N36.87 trillion, resulting in a fiscal deficit of N31.46 trillion. This gap has necessitated greater reliance on debt financing to bridge the shortfall.
Other sources of financing include N189.16 billion from asset sales and privatisation proceeds, and N2.05 trillion from multilateral and bilateral project-tied loans.
Revenue projections have improved to N36.87 trillion, comprising N25.92 trillion from federation revenues, N4.31 trillion from independent revenues, and N5.85 trillion from government-owned enterprises. Additional inflows include N1.37 trillion in grants and aid, and N300 billion from special funds.
On the expenditure side, debt service is estimated at N15.81 trillion — one of the largest single components — with domestic debt service accounting for N10.16 trillion and foreign obligations at N5.36 trillion. Recurrent non-debt expenditure is projected at N15.43 trillion, capital expenditure at N32.29 trillion, and statutory transfers at N4.80 trillion.
The upward revision in borrowing needs follows President Bola Tinubu’s request to the Senate for an increase of N9 trillion in the 2026 Appropriation Bill, raising the total budget size from N58.4 trillion to N67.4 trillion.
To help close the financing gap, lawmakers have proposed several revenue-enhancing measures, including a $10 per barrel increase in the oil price benchmark, which is expected to generate an additional N2.592 trillion. Stronger contributions from the telecommunications sector, driven by recent tariff adjustments, are also anticipated, with MTN Nigeria projected to contribute N724 billion in company income tax and Airtel Nigeria N150 billion, bringing the sector’s total additional revenue to N874 billion.
The increased borrowing plan underscores the government’s continued dependence on debt to fund its ambitious expenditure priorities, particularly infrastructure and development projects, while navigating revenue constraints and rising debt service obligations in 2026.
