President Bola Tinubu has formally requested the National Assembly approve an increase of ₦9 trillion to the 2026 federal budget, raising the total proposed expenditure from ₦58.4 trillion to ₦67.4 trillion.
The request was formally conveyed through a letter presented to the Senate by President of the Senate Godswill Akpabio during plenary proceedings on Tuesday. Tinubu stated the adjustment aims to enhance fiscal transparency and ensure the effective execution of key national programmes.
Objectives of the Budget Adjustment
The President outlined three primary goals for the proposed increase. First, it seeks to regularize and account for outstanding legal commitments carried over from previous budget cycles, preventing them from hindering the implementation of the 2026 budget. Second, the adjustment aims to consolidate and properly capture existing government indebtedness within the fiscal framework. Third, it provides funding for a limited number of strategic and priority projects, while aligning the overall financing plan to maintain macro-fiscal stability and reduce pressure on the domestic financial market.
Context and Budget Details
This request follows the presentation of the ₦58.18 trillion 2026 budget by Tinubu last December. That budget allocated ₦5.41 trillion to defence and security, representing approximately 9.3 percent of total expenditure. The ₦58.18 trillion budget carried a deficit of ₦23.85 trillion, equivalent to 4.28 percent of GDP, which Tinubu stated aligns with his administration's fiscal framework.
Tinubu emphasized the budget's foundation in "realism, prudence, and growth orientation," highlighting key aggregates: projected total revenue of ₦34.33 trillion, total expenditure of ₦58.18 trillion, recurrent expenditure of ₦15.25 trillion, and capital expenditure of ₦26.08 trillion. He stated, "These numbers are not just accounting lines. They are a statement of national priorities. We remain firmly committed to fiscal sustainability, debt transparency, and value-for-money spending."
The 2026–2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper sets the parameters for this budget. Tinubu's projections are 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 for the 2026 fiscal year.
