Nigerian lawmakers approve increased $49.4 billion 2026 budget

By Camillus Eboh

ABUJA, March 31 (Reuters) - Nigeria's parliament on Tuesday approved a 68.30 trillion naira ($49.4 billion) budget for 2026, after President Bola Tinubu asked lawmakers to back adjustments to increase a plan put forward in December.

Tinubu, now in his third year in office, has rolled out Nigeria's most ambitious economic overhaul in decades by ending costly fuel and energy subsidies, devaluing the currency, and changing the tax system to boost the public finances.

Tinubu presented a 58.47 trillion naira budget to the National Assembly on December 19, saying it was aimed at consolidating economic reforms and accelerating growth.

Lawmakers passed a higher figure after the president requested adjustments, the chairs of the Senate and House of Representatives Appropriation Committees said in a joint statement.

The statement said the increase was meant to accommodate outstanding capital projects carried over from previous budget cycles and prevent unresolved obligations from weighing on the 2026 fiscal programme.

Lawmakers also approved a $6 billion loan request sought by Tinubu to bolster the higher budget, covering outstanding capital spending from previous years, infrastructure projects, and debt servicing, with at least 40% earmarked for capital projects in the 2025 and 2026 budgets. Of the loan, Tinubu hopes to borrow $5 billion from First Abu Dhabi Bank and $1 billion from Citi.

Nigeria's budget chief in December set a 4.68% growth target for 2026, slightly above the World Bank's 4.4% forecast. The deficit is seen widening to more than 6% of gross domestic product, or 31.46 trillion naira, from an initial estimate of 4.28% after the budget increase.

The budget will be sent to Tinubu to be signed into law.

($1 = 1,383.1200 naira)