The Federal Government has revised its borrowing plan for 2026, increasing the figure by N11.31 trillion to a total of N29.20 trillion.
This represents a significant jump from the earlier projection of N17.89 trillion outlined in the 2026 Abridged Budget Call Circular issued in December 2025.
The updated borrowing plan is contained in the 2026 Appropriation Bill, which has been approved by the National Assembly. Details of the revision were also reflected in the House of Representatives Order Paper dated March 31, 2026, along with supporting budget documents.
The increase in borrowing is tied to a higher fiscal deficit, now estimated at N31.46 trillion. This comes as total government expenditure is projected at N68.32 trillion, while expected revenue stands at N36.87 trillion.
Beyond borrowing, the government plans to generate additional funds through other sources, including N189.16 billion from asset sales and privatisation, as well as N2.05 trillion from multilateral and bilateral project-linked loans.
Revenue projections for 2026 are anchored on multiple streams. Federation revenues are expected to contribute N25.92 trillion, while government-owned enterprises are projected to generate N5.85 trillion. Independent revenues are estimated at N4.31 trillion. Additional inflows include N1.37 trillion in grants and aid, alongside N300 billion expected from special funds.
On the expenditure side, debt servicing continues to take a large share of the budget, with a projection of N15.81 trillion. Recurrent non-debt spending is estimated at N15.43 trillion, while capital expenditure is expected to reach N32.29 trillion. Statutory transfers are projected at N4.80 trillion.
A closer look at debt obligations shows that domestic debt servicing will account for N10.16 trillion, while foreign debt payments are projected at N5.36 trillion, reflecting the growing cost of both local and external borrowing.
Earlier, President Bola Tinubu had written to the Senate, led by Godswill Akpabio, seeking approval to increase the overall 2026 budget by N9 trillion—from N58.4 trillion to N67.4 trillion.
The request was partly driven by a proposed $10 increase in the oil benchmark price, expected to generate an additional N2.592 trillion in revenue. Lawmakers also pointed to improved earnings from the telecommunications sector following recent tariff adjustments and policy reforms.
According to projections, MTN Nigeria could contribute about N724 billion in company income tax in 2026, while Airtel Nigeria is expected to generate N150 billion, bringing total additional revenue from the sector to approximately N874 billion.
Despite these anticipated revenue gains, lawmakers approved an increase in external borrowing by N6.163 trillion to cover the remaining funding gap. They maintained that the current debt level remains within manageable limits.
