A presidency source has explained why the Federal Government increased the proposed 2026 budget from ₦54.46 trillion, as outlined in the Medium-Term Expenditure Framework (MTEF), to ₦58.18 trillion.
According to the source, who spoke to Vanguard, the upward revision was necessitated by the recent approval by President Bola Tinubu for the large-scale recruitment of personnel into the military, police, and other security agencies.
The source disclosed that budget submissions from Ministries, Departments, and Agencies (MDAs) to the Budget Office of the Federation had already been concluded in line with the Budget Call Circulars before the announcement of the new security recruitments.
As a result, the budget estimate had to be adjusted to accommodate the financial implications of the additional personnel.
The source further explained that the President presented the budget to the National Assembly ahead of detailed breakdowns to demonstrate commitment to its early passage, noting that the budget process was already behind schedule.
“They had to present the budget quickly. The details will be worked on and cleaned up before the Bill returns to the National Assembly for MDA budget defence and subsequent processes,” the source said.
The proposed aggregate expenditure of ₦58.18 trillion represents a 6 per cent increase over the ₦49.7 trillion budget estimate for 2025.
The figure includes projected spending of government-owned enterprises (GOEs) amounting to ₦4.98 trillion, as well as ₦1.37 trillion earmarked for grants and donor-funded projects.
Other key components of the proposed budget include statutory transfers of ₦4.1 trillion and debt servicing of ₦15.52 trillion, which includes ₦3.388 trillion allocated to the sinking fund for the retirement of maturing obligations to local contractors and creditors.
Personnel costs, including pensions, are estimated at ₦10.75 trillion, representing a 7 per cent increase over the 2025 provision. This figure includes ₦1.02 trillion for government-owned enterprises. Overhead costs are projected at ₦2.22 trillion.
The source noted that non-oil revenue continues to rise, now accounting for about two-thirds of total government receipts, signaling a structural shift away from reliance on oil income.
With projected revenue of ₦34.33 trillion and total expenditure of ₦58.18 trillion, the budget deficit is estimated at ₦23.85 trillion, equivalent to 4.28 per cent of Gross Domestic Product (GDP).
Recurrent (non-debt) expenditure is projected at ₦15.25 trillion, while capital expenditure is estimated at ₦26.08 trillion.
In terms of sectoral allocation, security received the highest allocation at ₦5.41 trillion, followed by infrastructure (₦3.56 trillion), education (₦3.52 trillion), and health (₦2.48 trillion).
