President Bola Tinubu on Friday laid the proposed ₦58.18 trillion 2026 budget before a joint sitting of the National Assembly, while also announcing a hardline stance on security, declaring that any armed group operating outside the authority of the state would now be classified as a terrorist organisation.
The President said the administration would pursue firmer security measures, tighter fiscal discipline and far-reaching economic reforms in the coming year. Branded the “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” the spending plan is designed to consolidate recent macroeconomic improvements, rebuild investor confidence and convert economic recovery into employment opportunities and better living conditions for Nigerians.
Tinubu began his address at 3:31 p.m. and was still delivering it by 4:02 p.m., telling lawmakers that he was fulfilling his constitutional responsibility by presenting the 2026 Appropriation Bill. He described the moment as a critical phase in Nigeria’s reform journey, acknowledging the hardship experienced by citizens over the past two and a half years but assuring them that their sacrifices would ultimately yield positive results.
Economy showing stability
According to the President, the Nigerian economy is gradually stabilising. He pointed to a GDP growth rate of 3.98 per cent in the third quarter of 2025, alongside a steady decline in inflation over eight consecutive months to 14.45 per cent in November 2025. He also highlighted gains in oil output, stronger non-oil revenue performance and renewed investor interest.
Tinubu revealed that external reserves had risen to about $47 billion by mid-November 2025, the highest level in seven years, enough to cover more than 10 months of imports. He stressed that these improvements were the outcome of deliberate and sometimes difficult policy decisions, adding that the next challenge was to ensure economic stability translates into broad-based and inclusive prosperity.
2026 budget framework
Under the proposal, total revenue for 2026 is estimated at ₦34.33 trillion, while aggregate expenditure is put at ₦58.18 trillion, including ₦15.52 trillion earmarked for debt servicing. Recurrent spending, excluding debt, is projected at ₦15.25 trillion, with capital expenditure set at ₦26.08 trillion. The resulting deficit of ₦23.85 trillion represents 4.28 per cent of GDP.
The budget is anchored on key assumptions, including an oil price benchmark of $64.85 per barrel, daily crude production of 1.84 million barrels, and an exchange rate of ₦1,400 to the dollar. Tinubu said the figures reflect the government’s priorities, underlining commitments to fiscal responsibility, transparency in debt management and prudent use of public funds.
Security tops allocations
Security received the largest sectoral allocation at ₦5.41 trillion, followed by infrastructure with ₦3.56 trillion, education at ₦3.52 trillion and health at ₦2.48 trillion.
Unveiling a new security doctrine, the President said Nigeria was overhauling its national security framework with a unified counter-terrorism strategy. He stated that bandits, militias, armed gangs, kidnappers, violent cult groups, forest-based armed groups and foreign-backed mercenaries would all be treated as terrorists. He warned that anyone who finances, supplies arms to, facilitates ransom payments for, or offers political, community or religious cover to such groups would also face terrorist designation.
Fiscal discipline and revenue reforms
Tinubu admitted that the 2025 budget implementation had faced transitional difficulties. As of the third quarter of 2025, he said ₦18.6 trillion in revenue—about 61 per cent of the target—had been realised, while expenditure stood at ₦24.66 trillion, representing 60 per cent of projections. Only ₦3.10 trillion, or 17.7 per cent of the capital budget, had been released by that period.
He promised stricter adherence to budgetary provisions in 2026, instructing finance and budget officials to ensure implementation aligns fully with approved details and timelines. Heads of government-owned enterprises were directed to meet their revenue obligations, supported by comprehensive digitisation to curb leakages and inefficiencies. Tinubu warned that underperformance in key agencies would no longer be tolerated.
Education, health and agriculture
The President said the government would continue to strengthen investments in human capital. He disclosed that more than 418,000 students had benefited from the Nigerian Education Loan Fund through partnerships with 229 tertiary institutions. Health spending, he noted, accounts for six per cent of the total budget excluding liabilities, with prospects of over $500 million in U.S. grant support for targeted health programmes.
On food security, Tinubu said agriculture would remain a priority, with increased focus on mechanisation, irrigation, climate-smart practices, storage facilities and agro-value chains to reduce post-harvest losses and improve smallholder farmers’ incomes.
Commitment to delivery
Emphasising accountability, Tinubu said the true value of a budget lies not in its announcement but in its effective execution. He pledged improved revenue mobilisation, more efficient spending and stronger oversight mechanisms.
As he formally presented the bill to lawmakers, the President said the 2026 budget belongs to all Nigerians and expressed confidence that collaboration between the executive and legislature would ensure the successful delivery of the Renewed Hope Agenda. He concluded by formally laying the 2026 Appropriation Bill before the National Assembly and invoking blessings on the Federal Republic of Nigeria.