The Federal Government is looking to rising crude oil prices to plug a widening ₦9tn gap in the 2026 budget, as President Bola Tinubu seeks legislative approval for a ₦9.09tn increase in the fiscal plan.
The request, read on the Senate floor, signals a major adjustment aimed at capturing new revenue opportunities and strengthening budget execution.
According to the proposal, the government plans to fund the expansion through oil windfalls linked to global market tensions, alongside fresh borrowing.
Lawmakers have already raised the total budget to ₦68.32tn from the initial ₦58.18tn, with the increase targeted at clearing legacy obligations, funding infrastructure, boosting healthcare, and preparing for the 2027 general elections.
A significant portion of the adjustment includes the rollover of ₦7.71tn in outstanding capital projects from 2025, many of which were affected by revenue shortfalls.
Additional allocations cover rail development, healthcare interventions worth about ₦482.76bn, and increased funding for the judiciary to strengthen its capacity ahead of election-related cases.
To support the expanded spending, the government is banking on a higher oil benchmark and improved non-oil revenue, including projected tax contributions of ₦724bn from MTN Nigeria and ₦150bn from Airtel Nigeria. However, a funding gap remains, prompting approval for additional external borrowing estimated at ₦6.16tn, alongside separate loan requests totalling $6bn for infrastructure and fiscal support.
Reacting to the development, a development economist, Aliyu Ilias, stressed the need for disciplined spending. “The first sector these funds should be channelled into is security. Once we stabilise the country, economic activities can truly grow,” he said, while calling for targeted support measures to cushion the impact of rising fuel costs on Nigerians.