FG Raises 2026 Borrowing Plan to N29.2trn
The Federal Government has raised its borrowing plan for 2026 to ₦29.2 trillion, following an expansion of the budget size approved by the National Assembly.
This represents an increase of ₦11.31 trillion compared to the earlier projection of ₦17.89 trillion contained in the 2026 Budget Call Circular.
The new figure is detailed in the Appropriation Bill and House of Representatives Order Paper dated March 31, 2026.
Total spending is now estimated at ₦68.32 trillion, with projected revenues of ₦36.87 trillion, leaving a deficit of ₦31.46 trillion.
Most of this gap will be financed through borrowing, while asset sales and privatisation are expected to contribute only ₦189bn, and project-tied loans about ₦2.05 trillion.
Debt service alone will cost ₦15.81 trillion, split between ₦10.16 trillion for domestic debt and ₦5.36 trillion for foreign debt, underscoring Nigeria’s rising debt burden. Recurrent non-debt expenditure is put at ₦15.43 trillion, while capital spending is projected at ₦32.29 trillion.
Lawmakers said the upward revision was intended to clear legacy obligations, fund infrastructure, strengthen the judiciary, boost healthcare, and support preparations for the 2027 general elections.
They also raised the oil benchmark by $10 per barrel, expected to generate ₦2.59 trillion, and projected higher telecom tax contributions, including ₦724bn from MTN and ₦150bn from Airtel.
Despite these measures, external borrowing was increased by ₦6.16 trillion, with the Senate already approving Tinubu’s request for a fresh $6bn loan.
Critics, including Atiku Abubakar, warned that “reckless borrowing, enabled by legislative complacency, is dangerous,” adding that Nigeria’s future “cannot be signed away in a matter of hours.”
Economists such as Dr Muda Yusuf and Dr Aliyu Ilias cautioned that rising deficits could trigger inflation, weaken fiscal stability, and push Nigeria into a debt trap. “We need to worry about debt sustainability… high levels of deficits can choke the fiscal space,” Yusuf said.
Civil society groups argued that borrowing has not translated into development. BudgIT’s Joseph Amenaghawon said, “The result is debt without development. A generation borrowed but not invested in.”
He urged strict monitoring to ensure loans fund transformative projects rather than recurrent spending.
SOURCE: The PUNCH
