The Federal Executive Council has approved a N58.47tn budget proposal for the 2026 fiscal year, alongside amendments to the Medium-Term Expenditure Framework covering 2026 to 2028.
The approval was announced on Friday by the Director-General of the Budget Office of the Federation, Mr Tanimu Yakubu, after the council’s meeting presided over by President Bola Tinubu at the Presidential Villa, Abuja.
Yakubu said the proposed aggregate expenditure for 2026 represents about a six per cent increase over the 2025 budget estimate, reflecting adjustments in line with current fiscal realities.
He explained that the total spending envelope includes projected expenditure of N4.98tn by Government-Owned Enterprises, as well as N1.37tn set aside for grants and donor-funded projects.
According to him, the framework also provides for statutory transfers estimated at N4.1tn and debt service obligations amounting to N15.52tn, including N3.39tn earmarked for the sinking fund to retire maturing local contractors’ and creditors’ obligations.
Personnel costs, including pensions, are projected at N10.75tn, representing a seven per cent increase over the 2025 provision, with N1.02tn allocated to personnel expenses of Government-Owned Enterprises. Overhead costs are estimated at N2.22tn.
Yakubu disclosed that capital expenditure for 2026 is pegged at N25.68tn, a 1.8 per cent reduction from the 2025 capital allocation, noting that the cut reflects a cautious approach aimed at prioritising the completion of ongoing projects.
He added that capital spending priorities include N11.3tn for Ministries, Departments and Agencies, N2.05tn for multilateral and bilateral loans, and N1.8tn as the capital component of the development levy, stressing that the budget assumptions are conservative and aligned with the medium-term fiscal strategy.