THE SENATE has passed the N68.3 trillion Appropriation Bill for the 2026 fiscal year, approving a significant increase from the N58.47 trillion originally proposed by President Bola Ahmed Tinubu in December 2025.
The passage followed the presentation and consideration of the report of the Senate Committee on Appropriations during Tuesday’s plenary session, with the report submitted by the committee’s chairman, Senator Solomon Olamilekan Adeola (APC-Ogun).
The approved budget, titled: “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” comprises N4.8 trillion for statutory transfers, N15.81 trillion for debt servicing, N15.43 trillion for recurrent (non-debt) expenditure, and N32.29 trillion for capital expenditure.
The capital component, which takes the largest share, reflects the government’s intention to prioritise infrastructure development, security, health, education, and the welfare of citizens.
Background and Legislative Process
The journey to the budget’s passage began on December 19, 2025, when the Federal Executive Council (FEC) approved the initial N58.47 trillion budget proposal, representing a six per cent increase from the 2025 budget estimate.
President Tinubu subsequently presented the proposal to a joint session of the National Assembly, with key macroeconomic assumptions including an inflation target of 16.5 per cent, exchange rate stabilisation around N1,400 to the dollar, oil production of 1.84 million barrels per day, and a benchmark oil price of $64.85 per barrel.
The National Assembly conducted an extensive legislative scrutiny process throughout January and February 2026. The Senate Committee on Appropriations released a comprehensive legislative timetable in late January, scheduling budget defence sessions from February 2 to 13, a public hearing on February 9, and an interactive session with the economic team on March 5.
Senator Adeola emphasised the Senate’s commitment to thorough examination, noting that while leadership initially proposed March 12 for passage, an additional week was secured to ensure meticulous oversight.
During the February 9 public hearing, Senator Adeola declared that the National Assembly would “no longer approve budget extensions,” stressing the need to “discipline our budgeting cycle, enforce strict adherence to appropriation timelines, and ensure better coordination between policy design and implementation”.
This declaration came amid ongoing concerns about persistent budget rollovers, with lawmakers noting that approximately 70 per cent of capital projects were rolled over to 2026 due to revenue shortfalls in 2025.
Key Adjustments and Rationale for Increment
The N9.09 trillion increase from the initial proposal was formally requested by President Tinubu to accommodate additional fiscal realities and national priorities. The adjustments were deemed necessary to “regularise outstanding legacy capital commitments” and ensure that the 2026 budget would not be burdened by unresolved obligations from previous fiscal cycles.
A major component of the adjustment is the inclusion of N5.71 trillion to cover outstanding capital obligations carried over from the 2025 fiscal year, alongside an additional N2 trillion earmarked for priority projects across multiple sectors that were not captured in the original proposal.
Lawmakers noted that many 2025 capital projects were unlikely to be completed before the budget expired, necessitating their rollover into the 2026 fiscal framework.
The approved budget also incorporates several strategic interventions across infrastructure, health, and governance sectors. These include N478.6 billion as equity contribution for presidential legacy light rail projects in Lagos, Kano, Kaduna, and Ogun states, as well as feasibility studies for Enugu and Maiduguri urban rail systems.
An additional N8.96 billion was approved for feasibility studies for the Calabar–Maiduguri corridor and the Maiduguri–Sokoto superhighway.
In the health sector, N482.76 billion was provided for priority interventions tied to existing bilateral commitments.
The judiciary received significant allocations, including N98.5 billion for the Court of Appeal, N36.7 billion for the Supreme Court, and N268.54 billion to strengthen judicial capacity and support the anticipated increase in the number of judges ahead of the 2027 general elections.
Funding Framework and Revenue Projections
The funding plan for the expanded budget relies on a combination of revenue enhancements and borrowing. An upward adjustment of the oil benchmark by $10 per barrel is expected to generate an additional N2.59 trillion.
Reforms in the telecommunications sector are projected to boost tax revenues, with major operators such as MTN Nigeria and Airtel Nigeria expected to contribute approximately N874 billion in corporate income tax.
The government also plans to raise an additional N6.16 trillion through external borrowing to bridge the funding gap. During the plenary session, the Senate approved two new loan requests from President Tinubu: USD 5 billion from the First Abu Dhabi Bank in the United Arab Emirates, and USD 1.9 billion from Citibank in London for the upgrade of Apapa and Tin Can ports in Lagos.
Senator Adeola defended the administration’s borrowing strategy, arguing that “if borrowing is used for the purpose it is meant for, there is no problem with it”.
He noted that Nigerians could testify to the utilisation of loans for projects such as the Lagos–Calabar Coastal Highway and other legacy initiatives under the Renewed Hope Agenda.
However, available records indicate that the federal government has sought external facilities exceeding $40 billion since 2023.
Extension of 2025 Budget Implementation
In a related resolution, the Senate approved the extension of the 2025 Appropriation Act implementation period to June 30, 2026, to allow for the completion of ongoing projects. This decision came despite earlier warnings from Senator Adeola that the National Assembly would “never again approve budget extensions”.
The Senate Leader, Opeyemi Bamidele, while moving for the extension, explained that implementation had not met optimal levels despite the provision of about 30 per cent of funds to Ministries, Departments, and Agencies (MDAs). The extension, he argued, would allow the needed time to fully execute capital projects.
Earlier in February, the Senate Committee on Appropriations had engaged the economic team on the poor implementation of capital votes.
The then Minister of State for Finance, Dr. Doris Nkiruka Uzoka-Anite, assured the committee that the implementation of the 30 per cent capital component of the 2025 budget would be completed before March 31, 2026. However, the subsequent extension suggests that these assurances were not fully realised.
Sectoral Allocations and Statutory Transfers
The passed budget provides detailed allocations for various statutory transfers and development commissions. The National Judicial Council (NJC) received N610.17 billion, while the Niger Delta Development Commission (NDDC) was allocated N618.13 billion. The North East Development Commission (NEDC) received N244.07 billion, and the North West Development Commission (NWDC) was allocated N145.61 billion.
Other development commissions received N140 billion each, including the South East Development Commission (SEDC), South West Development Commission (SWDC), South-South Development Commission (SSDC), and North Central Development Commission (NCDC). During budget defence sessions, the Senate had urged the NCDC to prioritise investments in agriculture and security, noting that the north-central region is predominantly agricultural.
For the defence and security sector, the budget allocates N5.41 trillion, while infrastructure received N3.56 trillion, education N3.52 trillion, and health N2.48 trillion. The Accountant General of the Federation, Shamseldeen Olujimi, called for emphasis on impact rather than project size, stating that success should be measured by “classrooms actually functioning, healthcare centres actually operational, power actually delivered, and jobs actually created”.
Legislative Outlook
In his remarks following the passage, Senate President Godswill Akpabio assured that critical sectors would receive adequate funding to drive growth, stability, and national development. He disclosed that the passed budget was a joint effort of both houses, eliminating the need to establish a conference committee.
The passage of the bill provides the executive branch with the necessary legal framework to begin full implementation of the 2026 projects by April 1, ensuring a seamless transition and sustained economic momentum. Lawmakers warned against the bureaucratic bottlenecks that delayed fund releases in the 2025 fiscal year and called for improved coordination between the executive and legislature to ensure effective implementation, emphasising the need for strict oversight by relevant committees to guarantee that budgetary provisions translate into tangible outcomes.
The budget’s passage also coincides with the official termination of the extended 2024 and 2025 capital budget implementations, which were slated to end on March 31, 2026, marking a shift in Nigeria’s fiscal management towards a strict, single-year revenue and expenditure pattern.
