Presidency Reveals Why Tinubu Raised 2026 Budget To ₦58.18 Trillion

The source disclosed that the upward review was primarily to accommodate the financial implications of the large-scale recruitment recently announced by President Bola Tinubu into the military, police, and other security agencies. It was gathered that budget submissions by Ministries, Departments, and Agencies had already been concluded before the recruitment decision was made, making an adjustment unavoidable.

The presidency insider noted that the development compelled the government to revise the overall budget size to reflect the added personnel costs. The president, the source added, proceeded to present the budget to the National Assembly without delay to demonstrate commitment to its swift passage, as the budget calendar was already behind schedule.

According to the source, detailed adjustments and harmonisation of figures would be completed before the budget bill returns to the National Assembly for further legislative scrutiny, including defence by MDAs.

The proposed ₦58.18 trillion aggregate expenditure represents a six per cent increase over the 2025 budget estimate of ₦49.7 trillion. The figure includes ₦4.98 trillion in projected spending by government-owned enterprises and ₦1.37 trillion earmarked for grants and donor-funded projects.

Further breakdown shows statutory transfers of ₦4.1 trillion, while debt servicing stands at ₦15.52 trillion, inclusive of ₦3.388 trillion allocated to a sinking fund for retiring maturing domestic obligations. Personnel costs, including pensions, are estimated at ₦10.75 trillion, reflecting a seven per cent rise over the previous year, while overhead expenses are projected at ₦2.22 trillion.

The report also highlights continued growth in non-oil revenues, now contributing about two-thirds of total government receipts, signalling a sustained shift away from oil dependence. With projected revenues of ₦34.33 trillion against total expenditure of ₦58.18 trillion, the budget deficit is estimated at ₦23.85 trillion, equivalent to 4.28 per cent of GDP.

Recurrent non-debt expenditure is pegged at ₦15.25 trillion, while capital spending is projected at ₦26.08 trillion. Security commands the largest sectoral allocation with ₦5.41 trillion, followed by infrastructure at ₦3.56 trillion, education at ₦3.52 trillion, and health at ₦2.48 trillion.