Nigeria Federal Government budgets 54.43 trillion Naira (38 billion dollars) for 2026 with deficit of 20%

Nigeria's Federal Executive Council has approved a 54.43 trillion Naira budget for 2026, representing a significant increase from previous years. The budget, which is equivalent to $37.7 billion, projects a deficit of 20.1 trillion Naira, or 3.61% of GDP. 

The budget is based on an oil benchmark price of $64.85 per barrel and an exchange rate of 1,512 Naira per dollar. The government expects to generate 34.33 trillion Naira in revenue, with debt service costs estimated at 15.9 trillion Naira. 

The budget prioritizes capital expenditure, with a focus on infrastructure development and economic growth. However, economists have expressed concerns about the high deficit and debt servicing costs, warning that it could put pressure on the economy. 

The budget will now be presented to the National Assembly for approval. If passed, it will be a significant step towards implementing the government's economic plans and achieving sustainable growth.