Nigeria has approved a spending framework of ₦54.5 trillion for the 2026 fiscal year as part of its medium-term fiscal strategy, setting the baseline for next year’s budget preparation.
The framework outlines the federal government’s expenditure priorities and establishes the parameters that will guide allocations across ministries, departments and agencies.
The approved plan projects total federal revenue at ₦34.33 trillion, creating an anticipated deficit of ₦20.1 trillion for the 2026 fiscal cycle.
The deficit projection reflects the persistent gap between government income and expenditure requirements and highlights the continued dependence on borrowings to fund public obligations.
The expenditure outlook includes substantial debt-related commitments, with debt service costs set at ₦15.9 trillion and non-recurrent debt obligations placed at ₦15.27 trillion.
These items remain among the largest components of the federal spending structure and underscore the scale of repayment pressures shaping fiscal decisions.
Key macroeconomic assumptions underpinning the framework include an oil benchmark price of $64.85 per barrel, an oil production estimate of 1.84 million barrels per day, and an exchange rate of ₦1,512 to the U.S. dollar.
The plan also adopts a GDP growth projection of 4.68% for the year.
Fiscal analysts note that the spending framework provides early clarity for budget planning but also reflects structural constraints within Nigeria’s public finance system.
The combination of high debt servicing needs, moderated oil output expectations and a wide revenue–expenditure gap continues to limit the government’s fiscal flexibility.
The 2026 spending framework is expected to guide the drafting of the Appropriation Bill, which will incorporate these parameters into the detailed budget proposal for legislative consideration.
The approval marks an initial step in the fiscal cycle and sets the foundation for the government’s policy and expenditure direction for the year ahead.