Nigeria manages record N68.32 trillion federal budget and state-level fiscal adjustments

Nigeria is managing significant fiscal adjustments at both the federal and state levels. President Bola Tinubu signed the 2026 Appropriation Act, the largest in the nation's history, totaling N68.32 trillion ($48.80 billion). The budget allocates N32.2 trillion to capital expenditure, N15.8 trillion to debt service, N15.4 trillion to recurrent spending, and N4.799 trillion in statutory transfers.

Analysis of the federal budget reveals a significant deficit. While the official announcement omitted a specific deficit figure, subtracting the projected revenue of N36.87 trillion from the total expenditure suggests a deficit of N31.45 trillion, or approximately 6.41% of GDP. This exceeds the 3% GDP ceiling established by the Fiscal Responsibility Act 2007. Various estimates of the deficit currently circulate, ranging from N23.85 trillion to N31.45 trillion.

At the state level, the Taraba State House of Assembly has received a N148 billion supplementary budget proposal from Governor Agbu Kefas. The proposal is undergoing a line-by-line review by the Committee of the Whole to determine how funds will be distributed across ministries, departments, and agencies to address emerging fiscal needs, security exigencies, or infrastructure projects.