The National Assembly has officially raised the 2026 budget to a staggering N68.3 trillion, a move sparked by an unexpected oil windfall and the need to fund massive infrastructure projects. This follows President Bola Tinubu’s request to upwardly review the initial N58.2 trillion proposal.

The “Budget of Consolidation, Renewed Resilience, and Shared Prosperity” has been significantly expanded to address legacy debts and jumpstart new projects

Transport Infrastructure: Funding for the Presidential Legacy Light Rail Projects in Lagos, Kano, Kaduna, and Ogun.

Health Interventions: Over N482 billion allocated for priority health sectors.

2027 Election Prep: Significant funds (approx. N135 billion) cleared for the Court of Appeal and Supreme Court to bolster the judiciary ahead of the next election cycle.

Despite the Middle East conflict pushing crude oil prices to $115 per barrel—well above the budget’s $75 benchmark—the government is still moving forward with fresh external borrowing.

• $6 Billion New Loan: The Senate approved the President’s request for a $5 billion loan from the First Abu Dhabi Bank (UAE) and an additional $1 billion backed by the UK Export Finance (UKEF) for port rehabilitations in Apapa and Tin Can.
• The Debt Dilemma: While the oil windfall provides a temporary cushion, the decision to borrow more has raised eyebrows. Critics and some lawmakers are concerned about the rising public debt stock, which is now estimated to be around $115 billion.

The N9 trillion jump from the original proposal isn’t just “extra spending.” Lawmakers explained that the increase was necessary to:

1. Regularize Legacy Projects: Clearing out N5.7 trillion in unfunded capital obligations from 2025.
2. Inflationary Pressure: Adjusting for the current exchange rate and the rising cost of materials for major construction.
3. Economic Stimulus: Pushing more cash into capital projects to create jobs and stabilize the economy.

Note: The National Assembly also extended the implementation of the 2025 Capital Budget until June 30, 2026, to ensure that no projects are left abandoned due to funding delays.