Nigeria Projects 2026 Budget Deficit of 4.28% of GDP

By Naija Enquirer Staff

Nigeria has projected a budget deficit equivalent to 4.28 per cent of its Gross Domestic Product (GDP) in 2026, as President Bola Ahmed Tinubu presented a ₦58.18 trillion spending plan aimed at consolidating ongoing economic reforms and stimulating growth.

Addressing a joint session of the National Assembly in Abuja on Friday, President Tinubu disclosed that the projected deficit would amount to approximately ₦23.85 trillion.

“The 2026 budget is anchored on realism, prudence and growth orientation,” Tinubu said. “We will spend with purpose, manage debt with discipline, and pursue growth that is broad-based, not narrow, and sustainable, not temporary.”

According to the proposal, ₦15.52 trillion has been earmarked for debt servicing, while ₦26.08 trillion will be allocated to capital expenditure. Key focus areas include security, infrastructure, education, and healthcare.

The budget assumptions are based on a benchmark crude oil price of $64.85 per barrel, with daily oil production projected at 1.84 million barrels. Oil revenues currently account for about two-thirds of Nigeria’s export earnings.

The exchange rate projection for the 2026 fiscal year was set at ₦1,400 to the US dollar.

Tinubu also highlighted recent macroeconomic improvements, noting that inflation declined to 14.45 per cent in November from 24.23 per cent in March, while Nigeria’s foreign reserves rose to a seven-year high of $47 billion.

“These outcomes are not accidental. They reflect difficult but deliberate policy choices,” the President stated.

Although Tinubu did not specify an official growth target, the Minister of Budget and Economic Planning had earlier projected economic growth of 4.68 per cent in 2026, slightly above the World Bank’s forecast of 4.4 per cent.

Source: Reuters (Camillus Eboh)