By Charles Pemu 
The Federal Executive Council has officially cleared the path for the 2026 Appropriation Bill following an emergency meeting at the State House on Friday. President Bola Ahmed Tinubu convened the session to finalize the fiscal estimates, which serve as the cornerstone of his administration’s economic stabilization strategy. The approved budget proposal, which totals ₦58.47 trillion, represents a six percent increase over the 2025 fiscal year and is now set for formal presentation to a joint session of the Senate and the House of Representatives.
The Director-General of the Budget Office of the Federation, Dr. Tanimu Yakubu, briefed journalists after the council meeting, highlighting that the expenditure framework integrates several critical funding streams. This includes ₦4.98 trillion allocated for government-owned enterprises and ₦1.37 trillion earmarked for donor-funded projects and international grants. The comprehensive plan also reserves ₦4.1 trillion for statutory transfers, ensuring that essential constitutional obligations are met as the government transitions into the new fiscal cycle.
A significant portion of the 2026 budget is dedicated to managing the nation’s financial obligations and human capital. Debt service requirements are projected at ₦15.52 trillion, a figure that includes a ₦3.39 trillion sinking fund specifically designed to retire maturing local debts owed to contractors and other creditors. This emphasis on debt management reflects a commitment to maintaining fiscal integrity and restoring confidence among domestic and international lenders.
Personnel costs, which encompass salaries and pensions for the federal workforce, are projected to rise by seven percent to ₦10.75 trillion. This allocation includes ₦1.02 trillion for personnel within government-owned enterprises, while overhead costs for the daily operations of the civil service are estimated at ₦2.22 trillion. These adjustments are intended to account for inflationary pressures and ensure the continued functionality of the government’s administrative machinery.
The 2026 budget introduces a more cautious approach to capital investment, with ₦25.68 trillion allocated to capital expenditure. This figure is marginally lower than the 2025 provision by 1.8 percent, a deliberate move to prioritize the completion of existing projects rather than initiating a high volume of new contracts. Within this framework, ₦11.3 trillion is set aside for ministries, departments, and agencies, while ₦2.05 trillion will fund projects backed by multilateral and bilateral loans.
According to Dr. Yakubu, the budget is anchored on conservative and realistic assumptions regarding oil prices and exchange rates. A notable structural shift has been recorded in the revenue outlook, where non-oil revenues now account for approximately two-thirds of the total government receipts. This trend marks a significant departure from the country’s historical dependence on crude oil exports, with corporate income tax, value-added tax, and customs duties serving as the primary fiscal anchors for the coming year.
The projected fiscal deficit for 2026 is driven largely by structural pressures such as debt servicing, wages, and pensions rather than discretionary spending. To bridge this gap, the federal government intends to rely primarily on domestic borrowing while complementing its needs with concessional loans from international development institutions. This financing strategy aims to balance the need for development with the imperative of maintaining a stable macroeconomic environment.
By focusing on value for money and institutionalizing a “Renewed Hope” ward development plan, the 2026 budget seeks to drive bottom-up economic growth. As the document moves to the National Assembly, the focus will shift to the legislative screening process, where lawmakers will evaluate the alignment of these figures with national priorities. The administration remains confident that the proposed expenditure will provide the necessary stimulus to sustain the momentum of ongoing economic reforms across the federation.