ABUJA — The Senate Committee on Appropriations has explained the N9 trillion increase in the 2026 federal budget, attributing it to strategic policy decisions, legacy projects, and expanded investments in critical sectors of the economy.
Chairman of the committee, Solomon Olamilekan Adeola, disclosed this while briefing journalists after presenting the panel’s report on the 2026 Appropriation Bill.
He said the total budget now stands at N68 trillion, describing it as a “budget of consolidation” aimed at sustaining the development agenda of President Bola Ahmed Tinubu.
According to Adeola, the increase was carefully worked out based on national priorities, the Medium-Term Expenditure Framework, and projected revenue streams.
“The increase is not arbitrary. It reflects a wider distribution of projects across the country, including initiatives that form part of the administration’s legacy programmes,” he said.
He explained that about N2 trillion of the increase was directly approved for additional projects, while other expenditures, including a superhighway visibility study costing N8.69 billion, contributed to the overall N9 trillion adjustment.
Funding Plan
The lawmaker outlined three key sources for funding the increase — improved revenue projections, independent earnings from government agencies, and borrowing.
He said the revenue benchmark was raised from 65 per cent to 75 per cent, a move expected to generate an additional N2.5 trillion.
Adeola added that independent revenue from agencies such as the Nigerian Communications Commission was also factored into the projections, citing increased investments in the communications sector.
He further disclosed that over N6 trillion of the additional spending would be financed through borrowing, noting that the loans were structured to support productive investments and maintain economic stability.
Debt Concerns
Addressing concerns over rising public debt, the senator said the current administration inherited significant liabilities, stressing that debt servicing remains essential for maintaining Nigeria’s financial credibility.
“One of the major debts we are servicing, about N2.2 trillion in March alone, was not incurred by this administration, but repayment is necessary for continuity and development,” he said.
He argued that consistent debt servicing strengthens Nigeria’s credit rating and ensures access to future funding at manageable costs.
Focus on Infrastructure
Adeola said a large portion of the increased budget would go into infrastructure projects aimed at boosting economic growth, creating jobs, and improving living standards.
He noted that the spending also targets key sectors such as education, healthcare, transportation, and communications.
Call for Collaboration
The senator emphasised the need for strong collaboration between the executive and legislature to ensure effective implementation of the budget.
“For the administration to succeed, there must be maximum cooperation with the National Assembly,” he said.
He assured Nigerians that the additional funds would be judiciously utilised, adding that the increase reflects deliberate planning and a commitment to sustainable national development.
