The Federal Executive Council (FEC), on Friday, approved an N58.47 trillion budget proposal for the 2026 fiscal year.
Mr Tanimu Yakubu, the Director-General of the Budget Office of the Federation, made this known while briefing newsmen after the FEC meeting, held at the Presidential Villa, Abuja.
The News Agency of Nigeria (NAN) reports that in the 2026–2028 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) reviewed, the total size of the budget is N54.46 trillion, of which N34.33 trillion is the retained revenue.
Mr Yakubu explained that the aggregate expenditure for the 2026 budget proposal is six per cent higher than the 2025 budget estimate.
“This includes projected spending of government-owned enterprises, amounting to N4.98 trillion, and N1.37 trillion for grants and donor-funded projects.
“The projected aggregate spending includes statutory transfers of N4.1 trillion debt service and N15.52 trillion, including N3.388.54 billion for the sinking fund to retire maturing issues of local contractors and creditors.
“Personnel costs, including pension: N10.75 trillion, which includes N1.02 trillion for government-owned enterprises and is seven per cent higher than the 2025 provision, and overhead costs N2.22 trillion,” he said.
The D-G stated that the 2026 budget reflects a deliberate balance between macroeconomic stabilisation, development imperatives and the medium-term fiscal framework.
He said that the budget assumptions are conservative and realistic, particularly on oil price, exchange rate, and government-owned enterprises’ dividends.
“The revenues decline year on year, but non-oil revenues now account for roughly two-thirds of total receipts, confirming a structural shift away from oil dependence.
“Corporate tax, VAT, customs, and independent revenues remain the main fiscal anchors. Expenditure growth is driven primarily by debt service, wages, and pensions rather than discretionary expansion.
“Capital spending is marginally reduced to prioritise completion of ongoing projects and value for money.
“The larger deficit reflects policy loosening. Financing relies on domestic borrowing, complemented by concessional multilateral loans,” he said.
Earlier, the Minister of Budget and Economic Planning, Sen. Abubakar Bagudu, confirmed that FEC considered the 2026 budget proposal that will be presented before the joint session of the National Assembly.
“As well as an amendment to the medium-term expenditure framework, which we propose, a revision downwards of the exchange rate from N1512 to N1400 and the consequential changes in budget size.
“So the Federal Executive Council approved both the amendment to the medium term as well as the 2026 budget proposal for presentation to the National Assembly,” Bagudu said.
Also, the Minister of Information and National Orientation, Alhaji Mohammed Idris, described the FEC as one item on the FEC meeting to consider and pass the 2026 budget for onwards transmission to the National Assembly by President Bola Tinubu.
“The budget has been looked at and discussed by members of the FEC after its due presentation by the Minister of Budget and Economic Planning and the Director-General of the Budget Office,” he said. (NAN)
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