Nigeria’s National Assembly significantly altered the nation’s fiscal trajectory for 2026 by raising the Appropriation Bill to N68.323 trillion and simultaneously advancing legislative processes to approve fresh external borrowings totaling $6 billion requested by President Bola Tinubu. These sweeping decisions, taken at a plenary of both chambers following the presentation of the Joint National Assembly Committee on Appropriation report and fresh presidential correspondences, underscored an aggressive fiscal expansion strategy. This strategy is aimed at stabilizing the economy, addressing legacy obligations, and unlocking infrastructure development, although concerns persisted over rising public debt and implementation efficiency.

The revised budget represented a substantial increase of over N9 trillion from the N58.18 trillion initially proposed by the President in December 2025. The joint committee justified this upward adjustment by the need to accommodate outstanding commitments from previous fiscal cycles, strengthen critical sectors, and align the budget with prevailing economic realities. The initial budget framework set an oil price benchmark of $64.85 per barrel with an assumed daily oil production of 1.84 million barrels per day. However, following the commencement of the Middle East conflict on February 28, the price of Brent crude sharply rose to $115 per barrel, nearly double the budget benchmark. Nigeria is currently raking in significant revenue from this spike, which lawmakers opted to spend rather than save for future contingencies.

A detailed breakdown of the approved N68.323 trillion fiscal plan showed specific allocations: N4.799 trillion was earmarked for statutory transfers, N15.809 trillion for debt servicing, N15.427 trillion for recurrent (non-debt) expenditure, and a substantial N32.287 trillion was devoted to capital projects. This significant focus on capital projects is widely interpreted as a strategic push to stimulate economic growth through robust infrastructure investment.

A key component of the increased capital expenditure was the incorporation of N7.71 trillion in outstanding capital obligations from the 2025 budget. Lawmakers highlighted that nearly 70 percent of capital projects in the 2025 budget were affected by revenue shortfalls and bureaucratic bottlenecks, necessitating a rollover to prevent abandonment and cost escalation. In addition to clearing these legacy liabilities, the legislature approved fresh allocations targeting strategic national priorities. This included N478.6 billion as federal government equity contribution under the Ministry of Finance Incorporated framework to support presidential legacy rail projects spanning Lagos, Kano, Kaduna, and Ogun States. This provision also covered feasibility studies for new urban rail systems in Enugu and Maiduguri, as well as upgrades to existing narrow-gauge lines. Furthermore, infrastructure planning received N8.96 billion for feasibility studies on the Calabar–Maiduguri corridor and the proposed Maiduguri–Sokoto superhighway under the Tinubu National Beltway Initiative, designed to enhance regional integration and boost trade connectivity.

The health sector also secured a major boost, with an additional $344.83 million (approximately N482.76 billion) earmarked for priority interventions tied to bilateral agreements, aimed at strengthening healthcare infrastructure and service delivery nationwide. In a move linked to preparations for the 2027 general election, the judiciary received enhanced funding, including N98.5 billion for the Court of Appeal, N36.7 billion for the Supreme Court, and N268.54 billion to expand judicial capacity through the appointment of additional judges and justices. Lawmakers stressed that a stronger judiciary was essential for timely adjudication of election disputes and and the sustenance of democratic governance.

To finance the enlarged budget, the National Assembly adopted a mix of revenue measures and increased borrowing. These included a $10 per barrel increase in the oil benchmark, expected to generate an additional N2.592 trillion, and improved revenue projections from the telecommunications sector. Specifically, MTN Nigeria was projected to contribute N724 billion in company income tax, while Airtel Nigeria was expected to remit N150 billion, bringing the total telecom sector contribution to about N874 billion. Despite these measures, the legislature approved an increase in external borrowing by N6.163 trillion to bridge the financing gap, insisting that the debt level remains within manageable limits.

In parallel with the budget approval, the Senate on March 31 specifically considered and approved two presidential requests for external loans amounting to $6 billion, further signaling a reliance on foreign financing to support the 2026 fiscal framework. One of the requests sought approval for a Structured Total Return Swap financing programme of up to $5 billion with First Abu Dhabi Bank in the United Arab Emirates. This facility, to be drawn in tranches, was designed to enhance liquidity, support budget implementation, refinance existing debts, and fund critical infrastructure. President Tinubu, in his correspondence, acknowledged that this borrowing would increase Nigeria’s public debt stock, which stood at an estimated $110.3 billion (equivalent to about N159.2 trillion) as of December 31, 2025, with debt servicing projected at N20.5 trillion in 2026. He, however, assured lawmakers that the phased structure of the facility would help manage its impact and ensure sustainability. The President also requested approval to issue naira-denominated securities as collateral and to meet margin obligations in United States dollars as they arise. In a separate request, Tinubu sought legislative backing for a $1 billion loan facility supported by UK Export Finance and arranged by Citibank London and other partners to rehabilitate the Apapa and Tin Can Island ports in Lagos. Describing the ports as critical national assets facing near engineering failure after decades of use, the President said the project would restore operational efficiency, improve safety, and reposition Nigeria as a competitive maritime hub. The rehabilitation project, to be executed by the Nigerian Ports Authority (NPA) under an Engineering, Procurement, Construction plus Finance model, is expected to span up to 14 years, including a 48-month availability period.

Former Vice President Atiku Abubakar vehemently criticized the Senate's swift approval of the $6 billion external loan requests, reportedly within less than four hours of their presentation. He described this development as