Nigeria may resort to additional borrowing to finance its 2026 budget as lawmakers and fiscal experts raise concerns over a widening deficit and weak revenue performance.
At a public hearing on the 2026 Appropriation Bill in Abuja, the Senate disclosed that the proposed budget of N58.47 trillion is set against projected revenue of N33.19 trillion, leaving a deficit of about N25.27 trillion.
Chairman of the Senate Committee on Appropriations, Solomon Adeola, said borrowing remains unavoidable given the country’s development needs and uncertain revenue inflows, but stressed that fiscal discipline and responsible debt management would be prioritised.
He added that debt servicing alone is expected to gulp about N15.90 trillion, underscoring the growing pressure on public finances.
Adeola warned that the National Assembly would intensify scrutiny of government spending, particularly service-wide votes, and insisted that future budgets would no longer be extended beyond December of any fiscal year due to poor implementation and abandoned projects.
He also emphasised the need for ministries, departments and agencies to improve cooperation with oversight bodies to ensure transparency, accountability and efficient use of public funds.
Meanwhile, concerns over poor budget implementation resurfaced as the Minister of Health, Prof. Mohammed Ali Pate, revealed that his ministry received only N36 million out of the N218 billion appropriated for its 2025 capital expenditure.
According to him, the limited release of funds severely affected the execution of capital projects, despite the full utilisation of personnel allocations.
Pate attributed the funding gaps to cash planning constraints and delays in releasing counterpart funds, which prevented access to donor-supported projects.
He explained that the health sector’s planning framework aligns with national development strategies and prioritises Universal Health Coverage, particularly through the strengthening of primary healthcare services.
The minister said the 2026 health budget proposal was prepared in line with the Medium-Term Expenditure Framework and processed through the Government Integrated Financial Management Information System to ensure needs-based allocation.
Lawmakers also highlighted concerns about inefficiencies in public spending, pointing to the electricity sector as a major financial burden that requires urgent structural reforms.
The House Committee on Healthcare Services, led by Amos Magaji, directed the health ministry to provide detailed records of donor funds received and how they were utilised as part of ongoing oversight efforts.
