The Federal Executive Council (FEC) has approved N58.47 trillion budget proposal for the 2026 fiscal year.
The approval was granted Friday at a special FEC meeting in Abuja and confirmed by Budget Office Director-General Tanimu Yakubu during a post-meeting briefing.
Naijaonpoint reports that this comes ahead of the president Bola Tinubu’s presentation of the 2026 Appropriation Bill to the National Assembly today.
What Yakubu is saying
Yakubu said the approved proposal aligns with the 2026–2028 MTEF and Fiscal Strategy Paper, reviewed by the Council for the 2026 budget preparations.
He said the 2026 budget proposal has an aggregate expenditure of N58.47 trillion, representing a six per cent increase over the 2025 budget estimate.
Within the framework, he said, the total budget size under the MTEF stands at N54.46 trillion, with retained revenue projected at N34.33 trillion.
The aggregate spending includes N4.98 trillion in projected expenditure by government-owned enterprises and N1.37 trillion for grants and donor-funded projects.
“The projected aggregate spending includes statutory transfers of N4.1 trillion debt service; N15.52 trillion including N3.388.54 billion for the sinking fund to retire maturing issues of local contractors and creditors,” he noted.
He added, “Personnel costs including pension: N10.75 trillion, which includes N1.02 trillion for government-owned Enterprises and seven per cent higher than the 2025 provision and overhead cost N2.22 trillion.”
He said the assumptions are conservative and realistic, especially on oil prices, exchange rates, and expected government dividends.
Although total revenue is projected to fall, non-oil income is expected to make up about two-thirds of receipts, showing reduced oil dependence.
The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies.
Earlier this month, FEC approved the 2026–2028 Medium-Term Expenditure Framework (MTEF).
In December 2024, Tinubu said the 2025 budget assumed inflation would drop from 34.6% to 15% and the exchange rate improve from about N1,700/$ to N1,500/$.
In its latest assessment, the Standard Bank had projected that the Naira would close at N1,458.8/$1 by December 2025.
In its latest assessment, the Standard Bank had projected that the Naira would close at N1,458.8/$1 by December 2025.