Nigeria Eyes N25.27tn Deficit as 2026 Budget Looms.

ABUJA — The Nigerian Senate officially confirmed yesterday that the nation must embrace fresh borrowings to sustain the 2026 fiscal cycle. Senator Solomon Adeola, Chairman of the Senate Committee on Appropriations, announced this during a public hearing in the capital. The proposed budget estimates total expenditure at N58.47 trillion, significantly outpacing the projected revenue of N33.19 trillion. This massive disparity leaves the federal government with a staggering fiscal deficit of N25.27 trillion to bridge. Consequently, debt servicing alone will consume approximately N15.90 trillion, representing nearly half of the expected total revenue.

Adeola defended the borrowing plan, citing unpredictable revenue inflows and the nation’s enormous infrastructure development requirements. However, he warned that the National Assembly will no longer tolerate the persistent culture of budget rollovers. The Senate vowed to enforce strict timelines, ensuring that no fiscal implementation extends beyond the December 31 deadline. Furthermore, lawmakers intend to scrutinize service-wide vote spending to ensure every kobo translates into tangible public benefit. This aggressive stance aims to restore discipline to a budgeting process long plagued by inefficiency and waste.

Conversely, the practical reality of budget execution remains dire for many critical sectors across the federation. Health Minister Prof. Mohammed Ali Pate revealed a shocking shortfall during his budget defense before the House. The Ministry of Health received only N36 million of its N218 billion appropriated capital budget for 2025. This measly disbursement makes the execution of vital healthcare projects practically impossible for the current fiscal year. Furthermore, the delay in counterpart funding prevented the ministry from accessing several essential donor-supported capital grants.

In a related development, fiscal experts warn that continued borrowing risks crowding out private-sector credit within the domestic market. The federal government intends to balance this by exploring external loans, public-private partnerships, and Eurobond issuances. Lawmakers also highlighted the electricity sector as a persistent drain on the already strained national treasury. They emphasized the urgent need for comprehensive reforms, including the unbundling of the power sector to attract investment. Ultimately, the 2026 budget represents a high-stakes gamble on the nation’s ability to borrow its way toward stability.

Nigeria’s fiscal future now depends on a delicate balance between essential spending and sustainable debt management. The National Assembly must ensure that these borrowed trillions actually build roads, fix hospitals, and secure the nation. Without strict accountability, the country faces a looming debt trap that could paralyze economic growth for a generation. Every Nigerian commuter feels the weight of these decisions as they navigate a landscape of rising costs and fragile services.