The Federal Executive Council (FEC), chaired by President Bola Ahmed Tinubu, has officially approved a ₦58.47 trillion ($69.6 billion) national budget proposal for the 2026 fiscal year, marking one of the most ambitious spending plans in Nigeria’s history. The approval, announced after a marathon session at the State House in Abuja, reflects an aggressive expansionary fiscal stance aimed at accelerating infrastructure development, boosting industrialization, and stimulating economic growth. This Nigeria 2026 budget FEC approval Tinubu fiscal plan comes with a major structural shift: the proposed transition to a new April-to-March fiscal cycle, starting in April 2026—a move designed to align government planning with global financial calendars and improve budget execution.
Currently, Nigeria operates on a January-to-December fiscal year, which often delays fund releases until March or April due to legislative processes. By shifting to an April start, the administration aims to eliminate this lag, ensure timely project funding, and enhance coordination with international partners and multilateral institutions that operate on similar cycles.
“This change is about efficiency, predictability, and performance,” said Finance Minister Wale Edun during a post-cabinet briefing. “We cannot continue losing four critical months every year. The new cycle will drive faster implementation and greater accountability.”
The ₦58.47 trillion proposal represents a 13.4% increase over the revised 2025 budget of ₦51.5 trillion, with allocations prioritized for:
- Infrastructure: ₦27.1 trillion (46.3%)—including roads, rail, power, and housing
- Debt Service: ₦17.9 trillion (30.6%), reflecting rising domestic borrowing costs
- Social Investment & Human Capital Development: ₦5.2 trillion (8.9%), covering education, health, and poverty alleviation programs
However, the boldness of the Nigeria 2026 budget FEC approval Tinubu fiscal plan is shadowed by growing concerns over revenue sustainability. According to internal reports from the Nigerian National Petroleum Company Limited (NNPCL) and the Federal Inland Revenue Service (FIRS), the 2025 fiscal year is on track to miss its oil revenue target by nearly 62%, due to lower-than-expected crude production, OPEC+ quotas, and delayed full-scale operations at some local refineries.
Non-oil revenues, though improving through tax reforms and digital enforcement tools, have not grown fast enough to close the gap. Analysts warn that without a significant boost in collections, the 2026 budget may rely heavily on debt financing—potentially pushing public debt servicing above 50% of total revenue.
“The ambition is commendable,” said Dr. Yemi Odubiyi, macroeconomist at Cordros Capital. “But ambition must meet realism. If revenue projections are overly optimistic, we risk another year of underspending, inflationary pressure, and FX strain.”
To support the fiscal framework, the government says it will deepen ongoing reforms:
- Expand AI-driven tax assessment systems targeting the informal and digital economy
- Fast-track asset monetization under the National Concession Implementation Committee (NCIC)
- Increase transparency in debt management via the Debt Management Office (DMO)
There is also renewed push to finalize the sale of non-core federal assets and expand public-private partnerships in transport and energy.
Still, stakeholders urge caution. The African Development Bank (AfDB) recently advised Nigeria to “prioritize fiscal consolidation” alongside growth investments, warning that high debt levels could undermine investor confidence.
As debate moves to the National Assembly for legislative review, lawmakers face tough questions:
Can Nigeria afford to spend more—before it earns more?
Because while the Nigeria 2026 budget FEC approval Tinubu fiscal plan sets a bold vision,
its success won’t be measured by size.
It will be measured by delivery.
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