The Federal Executive Council, chaired by President Bola Tinubu, has approved the 2026 appropriation budget, projecting total expenditure at N58.47 trillion, a six per cent rise from the 2025 estimate.
The Director-General of the budget office, Tanimu Yakubu, made this disclosure while briefing pressmen on Friday.
He said the proposal allocates N4.98 trillion to government-owned enterprises and N1.37 trillion for grants and donor-funded projects.
Statutory transfers were estimated at N4.1 trillion, while debt servicing represents the largest expenditure component at N15.52 trillion.
He noted that the debt service provision includes N3.38 trillion set aside for the sinking fund to redeem maturing obligations to local contractors and creditors.
“Personnel costs including pension: 10.75 trillion naira, which includes 1.02 trillion for government-owned enterprises and [is] seven percent higher than the 2025 provision. Overhead cost stands at 2.22 trillion naira.
“Capital expenditure: 25.68 trillion naira, 1.8 percent lower than the 2025 capital provision, reflecting a more conservative approach to capital planning and the focus on completing ongoing projects.
“Capital allocation priorities include MDAs 11.3 trillion naira, multilateral and bilateral loans 2.052 trillion naira, and the capital component of the development levy: 1.8 trillion naira,” Yakubu said.
The D-G said the 2026 budget strikes a deliberate balance between macroeconomic stabilisation, development priorities and the medium-term fiscal framework.
Yakubu added that the budget assumptions are conservative and realistic, especially with respect to oil prices, the exchange rate and dividends from government-owned enterprises.
“Revenues decline year on year, but non-oil revenues now account for roughly two-thirds of total receipt, confirming a structural shift away from oil dependence. Corporate tax, VAT, customs, and independent revenues remain the main fiscal anchors,” he added.
“Expenditure growth is driven primarily by debt service, wages, and pensions rather than discretionary expansion. Capital spending is marginally reduced to prioritize completion of ongoing projects and value for money.”
