Tinubu Seeks $6bn Loans, N9.09tn Budget Increase as Lawmakers Pass Spending Plan

Bola Ahmed Tinubu has asked the National Assembly to approve a 9.09 trillion naira increase to Nigeria’s 2026 budget while also seeking legislative backing for $6 billion in external loans, moves aimed at financing deficits and supporting key infrastructure projects.

The president’s request was conveyed in a letter read on the Senate floor by Godswill Akpabio on Tuesday, signalling a major adjustment to the fiscal framework. Tinubu said the proposed increase is intended to strengthen fiscal transparency, accommodate existing debt obligations and ensure the effective implementation of priority national programmes.

“The proposed adjustment is aimed at strengthening fiscal transparency and ensuring the effective implementation of priority national programmes,” the letter said.

Lawmakers, however, approved a higher total spending plan than requested. The National Assembly passed a 68.3 trillion naira budget for 2026, up from the 58.18 trillion naira initially proposed by the president in December 2025. The approved figure exceeds the executive’s revised projection by roughly 1 trillion naira.

Presenting the appropriation report, Senate Committee Chairman Solomon Adeola said the increase was necessary to address outstanding obligations, align the budget with current economic conditions and maintain macroeconomic stability.

A key component of the adjustment includes the rollover of 7.71 trillion naira in capital commitments from the 2025 budget, after revenue shortfalls left about 70% of projects underfunded. Lawmakers said the carryover would prevent project abandonment and rising costs.

The expanded budget allocates 32.29 trillion naira to capital projects, 15.81 trillion naira to debt servicing and 15.43 trillion naira to recurrent spending, with additional provisions for infrastructure, healthcare, the judiciary and preparations for the 2027 general elections.

New allocations include funding for rail development across Lagos, Kano, Kaduna and Ogun states, as well as feasibility studies for major transport corridors and urban rail systems. The health sector also received additional funding under bilateral agreements to improve service delivery.

To finance the spending increase, lawmakers proposed raising the oil benchmark by $10 per barrel, expected to generate about 2.59 trillion naira in additional revenue, alongside higher tax contributions from telecommunications firms. Despite these measures, the plan includes an additional 6.16 trillion naira in external borrowing.

Separately, both chambers approved Tinubu’s request to secure $5 billion from First Abu Dhabi Bank and a $1 billion export finance facility from Citibank in London. The loans are expected to support budget implementation, infrastructure development and refinancing of existing debts.

Tinubu said Nigeria’s public debt stood at about $110.3 billion as of the end of 2025.

Lawmakers said the 2026 budget prioritises security, infrastructure, health, education and human capital development, while projecting a deficit of 23.85 trillion naira, or 4.28% of gross domestic product.

The spending plan is based on an oil benchmark of $64.85 per barrel, production of 1.84 million barrels per day and an exchange rate of 1,400 naira to the dollar.

Economists said the effectiveness of the expanded budget will depend on implementation. Development economist Aliyu Ilias urged the government to prioritise security and productivity, warning that growth would remain constrained without stability.

Another economist, Adeola Adenikinju, called for stronger investment in power, infrastructure, agriculture and social protection programmes to cushion the impact of ongoing economic reforms.

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Both the Senate and the House of Representatives have now passed the budget, which is expected to be transmitted to the president for assent in the coming days.