Nigeria budget deficit projected to double to N31 trillion in 2026

Nigeria’s projected budget deficit is expected to more than double from N13.08 trillion in 2025 to over N31 trillion in 2026, according to analysis by the civic technology organization BudgIT.

The record N68.32 trillion budget is projected to be funded primarily through borrowing, as anticipated revenue of N36.87 trillion covers only 53.9 percent of the total budget. Debt servicing is expected to consume N15.81 trillion.

BudgIT warned that this deficit, equivalent to 6.4 percent of GDP, violates the Fiscal Responsibility Act, which recommends a three percent threshold. The organization characterized the 2026 budget as “ambitious but unrealistic” and unviable due to stagnant revenues and rising fiscal risks.