The Federal Government has increased its planned borrowing for 2026 by N11.31 trillion to N29.20 trillion, up from the initial projection of N17.89 trillion in the 2026 Abridged Budget Call Circular issued in December 2025.
The hike is outlined in the 2026 Appropriation Bill, approved by the National Assembly, and detailed in the House of Representatives Order Paper dated March 31, 2026, along with the budget schedule reviewed by Channels Television. Fiscal deficit is now estimated at N31.46 trillion, reflecting the revised borrowing plan.
Revenues are projected at N36.87 trillion, while total government expenditure is expected to reach N68.32 trillion. Additional financing will come from N189.16 billion in asset sales and privatisation, and N2.05 trillion from multilateral and bilateral project-tied loans.
The earlier borrowing estimate of N17.89 trillion was based on a lower deficit projection of N20.12 trillion. Government revenue for 2026 is expected to comprise N25.92 trillion from federation revenues, N5.85 trillion from government enterprises, and N4.31 trillion from independent sources. Grants and aid are projected at N1.37 trillion, with N300 billion from special funds.
On the expenditure side, debt service remains a major component at N15.81 trillion, while recurrent non-debt spending is estimated at N15.43 trillion. Capital expenditure is projected at N32.29 trillion, with statutory transfers totalling N4.80 trillion. Domestic debt service will account for N10.16 trillion, and foreign debt obligations are expected to reach N5.36 trillion.
In a letter to Senate President Godswill Akpabio, President Bola Tinubu requested approval to increase the 2026 Appropriation Bill by N9 trillion, raising the total budget from N58.4 trillion to N67.4 trillion. The adjustment was partly based on a $10 per barrel increase in the oil benchmark, expected to generate N2.592 trillion in additional revenue.
The lawmakers also cited higher contributions from the telecommunications sector, including N724 billion projected from MTN Nigeria and N150 billion from Airtel Nigeria, bringing total expected additional revenue to N874 billion. Despite these revenue measures, external borrowing was increased by N6.163 trillion to cover the shortfall, with debt levels considered within manageable limits.