The Senate on Tuesday passed the 2026 Appropriation Bill of N68.32 trillion, marking a significant increase from the N58.47 trillion initially presented by Bola Ahmed Tinubu in December 2025.
The upper chamber approved the revised figure following a formal request by President Tinubu, who had earlier written to the Senate to notify it of an upward review of the 2026 budget to accommodate additional fiscal realities and national priorities.
Themed “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” it is designed to consolidate macroeconomic stability, improve the business environment, promote job creation, and reduce poverty while strengthening human capital and protecting vulnerable Nigerians.
The approved sum of N68,323,309,818,667 comprises N4.8 trillion for statutory transfers, N15.81 trillion for debt servicing, N15.43 trillion for recurrent expenditure, and N32.29 trillion for capital expenditure, with the capital component taking the largest share in line with the government’s infrastructure and development agenda.
The increase in the budget size followed the inclusion of N7.71 trillion to cover outstanding capital obligations carried over from the 2025 fiscal year, as well as an additional N2 trillion for priority projects across multiple sectors that were not captured in the original proposal.
Lawmakers noted that many of the 2025 capital projects were unlikely to be completed before the expiration of that budget, necessitating their rollover into the 2026 fiscal framework.
The Senate also approved several strategic interventions contained in the President’s request, including 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. It further approved N8.96 billion 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, while 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.
The funding plan for the expanded budget includes an upward adjustment of the oil benchmark, expected to generate an additional N2.59 trillion, as well as increased non-oil revenue projections from the telecommunications sector.
The Senate noted that improved operating conditions in the sector are expected to yield about N724 billion in company income tax from MTN Nigeria and N150 billion from Airtel Nigeria. The government also proposed additional external borrowings of N6.16 trillion to finance the deficit.
The bill underwent legislative scrutiny after its presentation, including debates, committee engagements with the President’s economic team, and a public hearing involving Ministries, Departments and Agencies, civil society organisations, and other stakeholders.
The Appropriations Committee explained that the adjustments were necessary to “regularise outstanding legacy capital commitments” and ensure that the 2026 budget is not burdened by unresolved obligations from previous fiscal cycles.
The committee also observed that about 70 per cent of capital projects were rolled over to 2026 due to revenue shortfalls in 2025 and stressed that the revised budget would enable the full implementation of those obligations. It further noted that the capital expenditure component in the 2026 budget is higher than in previous appropriation acts, reflecting the Federal Government’s determination to prioritise security, health, education, infrastructure, and the welfare of citizens.
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. They emphasised the need for strict oversight by relevant committees to guarantee that budgetary provisions translate into tangible outcomes.
The Senate, in its resolution, also approved the extension of the 2025 Appropriation Act implementation period to June 30, 2026, to allow for the completion of ongoing projects.
In his remarks, Senate President Godswill Akpabio assured that with the passage of the revised budget, critical sectors will receive adequate funding to drive growth, stability and national development.
He also disclosed that the passed budget was a joint effort of both houses so there will be no need to set up a conference committee, while expressing optimism that there be more revenue for the execution of projects with the passage of the Tax Reform Act.
Daily Sun
