The Senate on Tuesday formally commenced debate on the 2026 Appropriation Bill, with the Senate Leader, Senator Opeyemi Bamidele (Ekiti Central), leading deliberations on the landmark fiscal proposal that seeks to authorise federal spending of ₦58.472tn for the 2026 financial year.
Presenting the general principles of the Bill during plenary, Bamidele told the chamber that the proposed legislation provides the legal and constitutional framework for implementing the 2026 Budget as presented by President Bola Tinubu to a joint session of the National Assembly on December 19, 2025.
He explained that the Bill was deemed to have passed first reading by virtue of its presentation by the President, in accordance with established parliamentary practice.
“Distinguished Colleagues, I rise to lead the debate on a Bill for an Act to Authorise the Issue from the Consolidated Revenue Fund of the Federation the total sum of ₦58,472,628,944,759 for the services of the Federation for the year ending 31st December, 2026, as presented by Mr President to a Joint Session of the National Assembly,” Bamidele said.
The Senate Leader described the Appropriation Bill as one of the most important legislative instruments of government, stressing that it lies at the heart of governance, economic planning and public finance management.
According to him, the Bill translates the policy direction outlined by the President in his Budget Address into enforceable public expenditure backed by law.
He further explained that the 2026 Budget was framed against the backdrop of ongoing economic reforms aimed at restoring macroeconomic stability, correcting long-standing distortions and strengthening public finance systems.
“The 2026 Budget is therefore not an experimental document. It is a budget of consolidation, consolidating reforms already undertaken, stabilising key economic indicators, and accelerating growth through targeted public investment,” he stated.
Breakdown of ₦58.47tn Spending Plan
Bamidele gave a detailed breakdown of the proposed ₦58.472tn total expenditure, explaining that the budget comprises:
- ₦4.097tn for statutory transfers
- ₦15.909tn for debt service
- ₦15.252tn for recurrent (non-debt) expenditure
- ₦23.214tn for capital expenditure through contributions to the Development Fund
He said the structure of the budget reflected deliberate prioritisation by the Federal Government, with capital expenditure emerging as the largest component of discretionary spending.
“Capital expenditure remains the single largest component of discretionary spending, underscoring the administration’s commitment to growth, productivity, and infrastructure development,” he said.
Describing the ₦23.214tn capital allocation as the backbone of the 2026 Budget, the Senate Leader said it was targeted at addressing Nigeria’s infrastructure deficit and expanding the productive capacity of the economy.
According to him, the allocation prioritises critical sectors such as transport infrastructure, power and energy, agriculture, industrial development, housing and the digital economy.
He said the scale of the capital investment was designed to stimulate private sector participation, create jobs, boost productivity, and strengthen both food and energy security.
“As the President emphasised, sustainable growth cannot be achieved without addressing infrastructure deficits and expanding the productive capacity of the economy,” Bamidele noted.
Recurrent Expenditure, Cost Controls
On recurrent (non-debt) expenditure, Bamidele said the proposed ₦15.252tn provision was meant to ensure the efficient running of government and effective service delivery across ministries, departments and agencies.
He explained that the allocation covers personnel costs and overheads, while assuring senators that strict cost-control mechanisms and efficiency measures would be enforced in the implementation of the budget.
Addressing concerns around public debt, the Senate Leader said the ₦15.909tn allocated for debt service reflected existing obligations rather than new borrowing plans.
He assured the Senate that the administration was committed to improving revenue mobilisation and gradually reducing reliance on borrowing to fund expenditure.
“This Senate will continue to exercise its oversight responsibility to ensure that borrowing remains prudent and that debt is deployed strictly for development purposes,” he said.
Bamidele also highlighted the ₦4.097tn earmarked for statutory transfers, explaining that the funds would meet constitutional obligations to key national institutions.
He stressed that adequate funding of these bodies was essential for democratic stability, institutional independence and effective governance.
2025 Budget Challenges, 2026 Fiscal Discipline
Naijaonpoint reports that the Senate Leader acknowledged challenges encountered in the implementation of the 2025 Budget, including revenue shortfalls and pressures on budget execution.
However, he said the Executive had committed to stronger fiscal discipline in 2026, with reforms focused on digitised revenue mobilisation, zero tolerance for leakages, and performance-based accountability for government-owned enterprises.
Bamidele disclosed that projected revenues for 2026 stood at ₦34.33tn, while total expenditure was estimated at ₦58.18tn, including ₦15.52tn earmarked for debt servicing.
He added that the resulting budget deficit of 4.28 per cent of GDP remained within the Medium-Term Fiscal Framework earlier approved by the Senate.
According to the Senate Leader, sectoral priorities in the 2026 Budget include security, education, healthcare, infrastructure and agriculture, reflecting Nigeria’s most pressing national needs.
He emphasised that peace and safety were fundamental prerequisites for sustainable economic growth.
Urging senators to approach the Bill with a strong sense of legislative responsibility, Bamidele called for transparency, fiscal discipline and alignment with national priorities during the review process.
“The true test of a budget is not in its presentation, but in its delivery,” he said.
He therefore appealed to his colleagues to give the Bill a favourable second reading and commit it to the Senate Committee on Appropriations for detailed consideration, urging lawmakers to ensure equity, realism and value for money during legislative scrutiny and subsequent oversight.