Abuja, Nigeria – The Federal Government has increased its planned borrowing for 2026 to N29.20 trillion (approximately $18.7 billion) following an expansion in the proposed budget size and fiscal deficit, according to official documents.
Okay News reports that the new borrowing figure represents an increase of N11.31 trillion compared to the earlier projection of N17.89 trillion contained in the 2026 Abridged Budget Call Circular issued in December 2025. The updated estimate is captured in the 2026 Appropriation Bill approved by the National Assembly.
The revised borrowing plan reflects a sharp increase in the fiscal deficit, now estimated at N31.46 trillion. Total government expenditure is projected at N68.32 trillion, while revenues are expected to reach N36.87 trillion. This gap between spending and revenue has driven a higher reliance on debt financing, with borrowing accounting for the bulk of deficit funding.
Debt service is projected at N15.81 trillion, making it one of the largest components of the budget. Domestic debt service will account for N10.16 trillion, while foreign debt obligations are projected at N5.36 trillion. Capital expenditure is projected at N32.29 trillion, reflecting a strong allocation to infrastructure and development projects.
President Bola Tinubu earlier requested the Senate’s approval to increase the 2026 Appropriation Bill by N9 trillion, raising the total budget from N58.4 trillion to N67.4 trillion. Lawmakers approved an increase in external borrowing by N6.163 trillion to bridge the shortfall, noting that the debt level remains within what they described as manageable limits.
This borrowing plan revision highlights the government’s widening fiscal gap and increasing reliance on debt to fund infrastructure and development spending.
 following an expansion in the proposed budget size and fiscal deficit, according to official documents.){kind=link}