The Federal Government plans to borrow N17.89tn in 2026 to fund a widening budget deficit as revenue projections fall sharply below expenditure needs, according to the 2026 budget framework obtained from the Budget Office of the Federation. The borrowing requirement is driven by a larger fiscal deficit and a weaker revenue outlook, even though overall expenditure is projected to fall slightly compared with the current year, puting the 2026 fiscal deficit at N20.12tn, up from N14.10tn approved for 2025.
Official figures in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning show that total new borrowing will jump from N10.42tn in 2025 to N17.89tn in 2026. This is an increase of N7.46tn (72 per cent) in fresh loans over one year, amid concerns over rising debt costs.
However, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said Nigeria must be cautious not to destroy the fragile stability achieved in recent months, warning that high deficits and rising debt levels pose a serious threat, further describing it as the risk of a debt trap, explaining that Nigeria has only recently regained some macroeconomic footing and that any disruption could quickly worsen inflation and exchange rate pressures.
