President Bola Ahmed Tinubu, on Friday, December 19, 2025, presented the ₦58.18 trillion 2026 Appropriation Bill to a joint session of the National Assembly. Tagged the "Budget of Consolidation, Renewed Resilience and Shared Prosperity," this fiscal proposal marks a pivotal phase in the administration's reform agenda, aiming to solidify macroeconomic stability, enhance resilience, and translate economic recovery into tangible improvements in citizens' living standards. The President acknowledged that the reforms initiated over the past two and a half years have been "painful but necessary," assuring Nigerians that their sacrifices are not in vain as the path of reform is the surest route to lasting stability and shared prosperity.

During the presentation, President Tinubu highlighted encouraging signs of economic stabilization and recovery. Nigeria's economy grew by 3.98 per cent in Q3 2025, an increase from 3.86 per cent recorded in Q3 2024. Inflation has shown a moderating trend for eight consecutive months, with headline inflation declining to 14.45 per cent in November 2025 from 24.23 per cent in March 2025. With stabilizing food and energy prices, tighter monetary conditions, and improved supply responses, a persistent disinflationary trend is expected throughout 2026, barring major supply shocks. Furthermore, oil production has improved due to enhanced security, technology deployment, and sector reforms, while non-oil revenues have significantly expanded through better tax administration rather than excessive taxation. Investor confidence is also returning, evidenced by capital inflows, renewed project financing, and stronger private-sector participation. Nigeria's external reserves reached a seven-year high of approximately US$47 billion as of November 14, 2025, providing over ten months of import cover and a robust buffer against economic shocks. These positive outcomes, Tinubu emphasized, are not accidental but reflect difficult yet deliberate policy choices, with the immediate task being to consolidate these gains to foster shared prosperity.

The 2026 fiscal framework projects a total revenue of ₦34.33 trillion against an estimated total expenditure of ₦58.18 trillion. This underscores the government's continued reliance on deficit financing to sustain growth and critical public spending. A significant portion, ₦26.08 trillion, is earmarked for capital investment, focusing on infrastructure and other development projects to boost productivity and long-term economic resilience. Recurrent non-debt expenditure is estimated at ₦15.25 trillion, while debt servicing is projected to consume ₦15.52 trillion, reflecting the persistent burden of past borrowings. Consequently, the budget records a deficit of ₦23.85 trillion, equivalent to 4.28 per cent of Gross Domestic Product. The budget assumptions are based on a conservative crude oil benchmark of US$64.85 per barrel, crude oil production of 1.84 million barrels per day, and an exchange rate of ₦1,400 to the US Dollar for the 2026 fiscal year. The budget is guided by four clear objectives: consolidating macroeconomic stability, improving the business and investment environment, promoting job-rich growth and reducing poverty, and strengthening human capital while protecting the vulnerable.

Key sectoral allocations in the 2026 budget reflect the "Renewed Hope Agenda." Defence and Security received the largest allocation of ₦5.41 trillion, underscoring its foundational role in development and the administration's commitment to tackling insecurity. Infrastructure was allocated ₦3.56 trillion, with emphasis on transport, energy, ports, agriculture, and food security. The education sector received ₦3.52 trillion, supporting initiatives like the Nigerian Education Loan Fund, which has already assisted over 418,000 students across 229 tertiary institutions. Healthcare was allocated ₦2.48 trillion, representing 6 per cent of the total budget net of liabilities, further bolstered by over US$500 million in grant funding for targeted health interventions secured from the U.S. government. President Tinubu also described food security as "national security," pledging investments in mechanisation, irrigation, storage, processing, and agro-value chains to reduce post-harvest losses and improve incomes.

A significant highlight of the budget presentation was the announcement of a decisive shift in Nigeria’s security doctrine. President Tinubu declared that any armed group or individual operating outside state authority would henceforth be classified as terrorists. This reclassification applies to bandits, militias, kidnappers, armed gangs, cult groups, forest-based armed collectives, and foreign mercenaries. Moreover, individuals and entities facilitating these groups, including financiers, ransom negotiators, informants, arms suppliers, transporters, political protectors, traditional rulers, and religious leaders, will also be designated as terrorists. The administration is establishing a new national counter-terrorism doctrine anchored on unified command, intelligence-led operations, community stability, and judicial reforms, fundamentally changing the approach to combating violent crimes that pose existential threats to the nation.

To ensure robust budget execution, President Tinubu directed the Minister of Finance, Budget Office, Accountant-General, and heads of Government-Owned Enterprises (GOEs) to enforce strict budget discipline. This includes a clear directive for GOEs to meet their assigned revenue targets, supported by the full digitization of revenue mobilization through automated collections, real-time monitoring, and performance dashboards to seal leakages and ensure prompt remittances. The National Assembly, through Speaker Tajudeen Abbas, pledged rigorous oversight of the 2026 Appropriation Bill, drawing lessons from the implementation challenges of the 2025 budget. Speaker Abbas welcomed President Tinubu’s insistence on operating a single fiscal framework, without parallel budgets or fragmented fiscal authorities, praising it as a critical step towards restoring order and transparency in public finance. He also noted that new tax laws taking effect in 2026 are pivotal to strengthening non-oil revenues. BudgIT, a civic organization, however, raised concerns about the absence of a publicly available 2025 budget implementation report, calling for greater accountability as the 2026 budget approaches.