The Federal Government has revised its 2026 borrowing plan, raising the projected figure by ₦11.31 trillion to a new total of ₦29.20 trillion.
This represents a substantial increase from the ₦17.89 trillion initially projected in the Abridged Budget Call Circular issued in December 2025.
The updated figures, contained in the 2026 Appropriation Bill recently approved by the National Assembly, indicate that the fiscal deficit is now estimated at ₦31.46 trillion, necessitating an expanded borrowing strategy to bridge the gap.
On the revenue side, the government expects total inflows for the 2026 fiscal year to reach ₦36.87 trillion.
This total is supported by ₦25.92 trillion in federation revenues, ₦5.85 trillion from government enterprises, and ₦4.31 trillion from independent revenues, alongside ₦1.37 trillion in grants and aid.
Despite these projected earnings, total government expenditure is set at ₦68.32 trillion. Capital expenditure accounts for ₦32.29 trillion of this total, while debt servicing remains a major burden at ₦15.81 trillion.
Recurrent non-debt expenditure is estimated at ₦15.43 trillion, with statutory transfers totaling ₦4.80 trillion.
The revision follows a request from President Bola Tinubu to the Senate to increase the 2026 Appropriation Bill by ₦9 trillion, moving the total budget from ₦58.4 trillion to ₦67.4 trillion.
This request was partly justified by a $10 per barrel increase in the oil benchmark, which is expected to generate an additional ₦2.592 trillion.
Lawmakers also highlighted increased contributions from the telecommunications sector following recent tariff adjustments, with projections suggesting that MTN Nigeria and Airtel Nigeria could contribute a combined ₦874 billion in company income tax during the 2026 period.
To finance the remaining fiscal gap, the National Assembly approved an increase in external borrowing by ₦6.163 trillion.
Other financing streams include ₦2.05 trillion from multilateral and bilateral project-tied loans and ₦189.16 billion anticipated from asset sales and privatization.
The rising cost of debt is increasingly evident, as domestic debt obligations are projected at ₦10.16 trillion and foreign debt service is estimated at ₦5.36 trillion. While the deficit has widened significantly, lawmakers maintained that the nation’s debt levels remain within manageable limits.