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The House of Representatives has passed the second reading of a proposed ₦58.47 trillion budget for 2026 fiscal year, designed to consolidate macroeconomic stability, strengthen national security and expand capital investment.
The approval followed the presentation of the bill’s framework by the Leader of the House, Julius Ihonvbere (APC, Edo), during Thursday’s plenary.
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President Bola Tinubu had formally presented the 2026 budget to a joint session of the National Assembly on 19 December 2025. The proposal, which covers the fiscal year ending 31 December 2026, was laid against the backdrop of ongoing economic reforms and fiscal tightening by the administration.
Of the total expenditure envelope, ₦4.09 trillion is allocated to statutory transfers, ₦15.91 trillion to debt servicing, and ₦15.25 trillion to recurrent (non-debt) expenditure.
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Capital expenditure accounts for ₦23.21 trillion, largely to be channelled through the Development Fund.
While leading the debate, Mr Ihonvbere described the proposal as the “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” saying it marked a defining moment in Nigeria’s pursuit of peace, economic growth, stability and sustainable development.
He told lawmakers that the Tinubu administration inherited “distorted and disarticulated institutions,” cautioning against expectations of painless reforms. According to him, the difficult economic adjustments underway are necessary to reposition the country for long-term growth.
“Development that is not sustainable is not development at all,” he said, arguing that short-term discomfort was unavoidable if the country was to achieve lasting progress.
To justify legislative backing for the budget, the House leader cited key macroeconomic improvements, including an economic growth rate of 3.98 per cent heading into the 2026 fiscal year, a reduction in inflation to 14.45 per cent from about 25 per cent, improved revenue performance, export growth and rising foreign direct investment.
He said the naira had stabilised at about ₦1,400 to the dollar, from levels above ₦1,800, while external reserves had risen to a seven-year high of roughly $47 billion, enough to cover more than 10 months of imports.
“We have not printed a single naira since this government came into office. That fiscal discipline has helped stabilise the economy,” Mr Ihonvbere added.
Outlining the fiscal framework, he said the 2026 budget projects total revenue of ₦34.33 trillion against total expenditure of ₦58.18 trillion, leaving a deficit of ₦23.85 trillion.
Capital expenditure, put at ₦26.08 trillion, exceeds recurrent spending, which Mr Ihonvbere said marked a clear departure from previous budgets where recurrent costs dominated.
“This is a departure from the past where recurrent spending outweighed capital investment. Here, capital expenditure is higher, which is what drives real development,” he said.
The budget assumptions include an oil benchmark price of $64.85 per barrel and oil production of 1.84 million barrels per day.
Sectoral allocations prioritise security and defence, with ₦5.41 trillion earmarked to tackle insecurity and food challenges. Infrastructure is allocated ₦3.56 trillion, education ₦3.54 trillion, and health ₦2.48 trillion.
Mr Ihonvbere also highlighted the administration’s international engagements aimed at attracting investment, including recent diplomatic and economic missions to countries such as Turkey, as part of efforts to improve the business climate and strengthen bilateral partnerships.
Beyond the figures, he said the budget reflects executive commitments to stronger fiscal discipline, improved revenue mobilisation through tax reforms, blockage of leakages, macroeconomic stability, human capital development and prudent debt management.
“We are not saying the government is perfect, but it is our duty, as representatives of 360 constituencies, to guide it to do the right things at all times,” he said.
After the debate, the Speaker of the House, Abbas Tajudeen put the question to a voice vote and members voted overwhelmingly for it to be passed for second reading.
The bill was subsequently read a second time and referred to the House Committee on Appropriations for further legislative work.
The House thereafter adjourned plenary for two weeks to allow ministries, departments and agencies to commence budget defence sessions.
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