The Federal Government plans to raise N17.89 trillion in fresh loans to finance the 2026 budget as revenue projections collapse by 23 per cent, according to the 2026 Abridged Budget Call Circular released by the Ministry of Budget and Economic Planning.
This marks a steep 72 per cent increase from the N10.42 trillion borrowing target for 2025, pushing the fiscal deficit to N20.12 trillion next year from N14.10 trillion this year.
Of the N17.89 trillion, N14.31 trillion (80 per cent) will be sourced from domestic lenders while N3.58 trillion (20 per cent) will come from external creditors, maintaining the heavy tilt toward local borrowing seen in previous years.
Total federal expenditure for 2026 is pegged at N54.46 trillion, slightly lower than the N54.99 trillion budgeted for 2025, with debt servicing alone set to consume N15.52 trillion or 45 per cent of available revenue.
Capital spending will drop to N22.37 trillion from N26.19 trillion in 2025, largely because agencies are required to roll over 70 per cent of their unspent 2025 capital allocations.
Over the three-year period from 2026 to 2028, the government intends to borrow a cumulative N54.91 trillion, with domestic sources accounting for N43.92 trillion of the total.