FEC okays N58.47tn 2026 budget
The Federal Executive Council, led by President Bola Tinubu, has approved the appropriation budget for 2026, which forecasts total spending to reach N58.47 trillion, marking a six percent increase from the 2025 projection.
Tanimu Yakubu, the Director-General of the budget office, shared this information with reporters on Friday.
He indicated that the proposal designates N4.98 trillion for government-owned enterprises and N1.37 trillion for projects funded by grants and donor assistance.
Estimated statutory transfers were pegged at N4.1 trillion, while the most substantial portion of the budget goes to debt servicing, which accounts for N15.52 trillion.
He mentioned that the debt service allocation includes N3.38 trillion earmarked for the sinking fund aimed at settling maturing debts to local contractors and creditors.
“Personnel expenses, including pensions, total 10.75 trillion naira, incorporating 1.02 trillion for government-owned enterprises, and this figure is seven percent higher than the provision for 2025. The overhead cost is projected at 2.22 trillion naira.
“Capital expenditure is set at 25.68 trillion naira, reflecting a 1.8 percent decrease from the 2025 capital allocation, signifying a more cautious approach to capital management and a focus on completing existing projects.
“Prioritized capital allocations consist of 11.3 trillion naira for MDAs, 2.052 trillion naira for multilateral and bilateral loans, and 1.8 trillion naira for the capital component of the development levy,” Yakubu said.
The Director-General noted that the 2026 budget aims to strike a careful balance between macroeconomic stability, development objectives, and the medium-term fiscal strategy.
Yakubu further remarked that the budget assumptions are both conservative and realistic, particularly concerning oil prices, the exchange rate, and dividends from government-owned enterprises.
“Revenue has decreased year-on-year, yet non-oil revenues now represent approximately two-thirds of total receipts, indicating a significant shift away from reliance on oil. Key sources of fiscal stability include corporate tax, VAT, customs duties, and independent revenue streams,” he added.
“Growth in expenditure is primarily influenced by debt servicing, salaries, and pensions, rather than discretionary increases. Capital spending is slightly reduced to prioritize the completion of ongoing projects and to ensure value for taxpayers' money.”
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