The Presidency has increased the 2026 Federal Government budget from the N54.46 trillion initially outlined in the Medium-Term Expenditure Framework (MTEF) to N58.18 trillion.
The adjustment is aimed at funding the massive recruitment into the military, police, and other security agencies, as recently announced by President Bola Tinubu.
The Director-General of the Budget Office of the Federation, Mr Tanimu Yakubu, announced the revised 2026 budget figure following a meeting of the Federal Executive Council (FEC) held on Friday, just hours before President Bola Tinubu presented the budget proposal to the National Assembly.
A Presidency source disclosed that submissions of budget proposals by Ministries, Departments and Agencies (MDAs) to the Budget Office—normally done after the issuance of the Budget Call Circular—had already been concluded before the recent decision to expand recruitment into the military and other security agencies.
According to the source, the late announcement of massive personnel intake into the armed forces and security agencies made it necessary to upwardly review the budget to accommodate the financial implications of the new recruitments.
It was further learnt that the FEC meeting held last Friday, which preceded Mr Yakubu’s announcement, lasted less than two hours and did not allow for detailed deliberations on the budget by council members.
Mr Yakubu was subsequently directed to brief journalists at the State House to formally announce the revised figure.
The source explained that the President had to hurriedly present the budget to the National Assembly to demonstrate commitment to early passage, as the budget process was already behind schedule and could not wait for all the details to be fully worked out before presentation.
They will work on the details and clean it up before the budget bill returns to the National Assembly, where the process will continue with MDAs’ budget defence and other legislative procedures,” the source said.
The proposed 2026 budget has an aggregate expenditure of N58.18 trillion, representing a six per cent increase over the 2025 budget estimate of N49.7 trillion.
The revised proposal factors in N4.98 trillion in projected spending by government-owned enterprises, alongside N1.37 trillion allocated to grants and donor-funded projects.
The projected aggregate expenditure comprises statutory transfers estimated at N4.1 trillion and debt service of N15.52 trillion, including N3.388 trillion earmarked for the sinking fund to retire maturing obligations to local contractors and creditors.
Personnel costs, including pensions, are projected at N10.75 trillion, representing a seven per cent increase over the 2025 provision.
This figure includes N1.02 trillion allocated to government-owned enterprises, while overhead costs are estimated at N2.22 trillion.
On the revenue side, non-oil revenues have continued to rise in recent years and now account for about two-thirds of total receipts, underscoring a gradual structural shift away from oil dependence.
With projected revenues of N34.33 trillion against total expenditure of N58.18 trillion, the budget deficit is estimated at N23.85 trillion, equivalent to 4.28 per cent of Gross Domestic Product (GDP).
Recurrent (non-debt) expenditure has been estimated at N15.25 trillion, while capital spending is projected at N26.08 trillion, underscoring the government’s continued emphasis on infrastructure and development projects.
In terms of sectoral priorities, security commands the largest allocation at N5.41 trillion, reflecting ongoing efforts to tackle national security challenges.
This is followed by infrastructure with N3.56 trillion, education at N3.52 trillion, and health receiving N2.48 trillion, highlighting sustained investment in human capital and critical public services.