By Ayomide Otitoju
The approval came during an emergency FEC meeting chaired by Vice President Kashim Shettima at the State House, Abuja—the first time he presided over a council session under the current administration.
Briefing State House correspondents after the meeting, Director-General of Budget, Tanimu Yakubu, said the revised 2026 appropriation represents a six per cent increase over the 2025 budget estimate.
He noted that the expenditure includes ₦4.98 trillion for government-owned enterprises and ₦1.37 trillion for grants and donor-funded projects. Aggregate spending also covers statutory transfers of ₦4.1 trillion, debt service of ₦15.52 trillion—including ₦388.54 billion for a sinking fund to retire maturing bonds—personnel costs and pensions of ₦10.75 trillion (including ₦1.02 trillion for government-owned enterprises), overhead costs of ₦2.22 trillion, and capital expenditure of ₦25.68 trillion.
“Capital expenditure is 1.8 per cent lower than the 2025 provision, reflecting a conservative approach focused on completing ongoing projects,” Yakubu explained, adding that capital allocation priorities include MDS at ₦11.3 trillion, multilateral and bilateral loans at ₦2.05 trillion, and the capital component of the development levy at ₦1.8 trillion.
Yakubu said the 2026 budget strikes a deliberate balance between macroeconomic stability and development imperatives within the medium-term fiscal framework, with conservative assumptions on oil prices, exchange rates, and dividends from government-owned enterprises.
He added that non-oil revenues now account for roughly two-thirds of total receipts, marking a structural shift away from oil dependence, while expenditure growth is primarily driven by debt servicing, wages, and pensions. “Capital spending is marginally reduced to prioritise completion of ongoing projects and value for money,” he said, noting that the larger deficit reflects structural financing needs rather than policy loosening.
Financing of the budget will rely on domestic borrowing, complemented by concessional multilateral loans.
Earlier, Minister of Budget and Economic Planning, Atiku Bagudu, said FEC also amended the Medium-Term Expenditure Framework (MTEF) and approved a downward revision of the exchange rate from ₦1,512 to ₦1,400.
