The Federal Executive Council FEC, has approved N58.47t, 2026 budget.
Idris Mohammed, Minister of Information disclosed this at the presidential Villa on Friday, while briefing State House Journalists, after meeting of the Council, presided over by President Bola Tinubu Tagged “Budget for Transmission”, he said the President will be transmitted to the National Assembly later today.
Exchange rate of N1400/$
Aggregate expenditure for 2026 is projected at 58.4 7 trillion Naira, 6% higher than the 2025 budget estimate.
The National Assembly had changed the proposed exchange rate from the 1512 to 1400, leading to consequential changes in budget size.
“So the federal executive council approved both the amendment to the mtep as well as the 2026, budget proposal for presentation to the National Assembly.
Tanimu Yakubu, Director General, DG, Budget Office, while giving the details, said the Federal Executive Council considered the 2026 budget proposal that is going to the National Assembly, as well as an amendment to the medium term expenditure framework, indicating a downward revision
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The Council also approved projected spending of government owned enterprises amounting to 4.9 8 trillion Naira and 1.3 7 trillion Naira for grant and donor funded projects, the projected aggregate spending includes statutory transfers, 4.1 trillion Naira debt service, 15.5 2 trillion including 3.3 188b for the sinking fund to retire maturing bonds issued to local contractors and creditors,
Others include Personnel cost, including pensions, of 10.7 5 trillion Naira, which includes 1.0 2 trillion for government owned enterprises, estimated to be 7% higher than the 2025 provisions
Overhead cost approved for 2026 is N2.2 2 trillion
The Council also approved Capital expenditure of N25.6 8 trillion, which is 1.8% lower than the 2025 capital provision, reflecting a more conservative approach to capital planning and the focus on completing ongoing projects.
He disclosed that Capital allocation priorities include MDS 11 point N3 trillion ,
Others include Provisions for multilateral and bilateral loans, of N2.05 2 trillion, and Capital component of the development Levy, of N1.8 trillion.
He revealed that the 2026 budget reflects a deliberate balance between macroeconomic stabilization and development imperatives.
Tanimu white noting that revenues decline year on year, said the non oil revenues now account for roughly two thirds of total receipts, confirming a structural shift away from oil dependence.
“Corporate tax, VAT, customs and independent revenues remain in the main fiscal ankles.
According to him ” Expenditure growth is driven primarily by debt service wages and pensions, rather than discretionary expansion, capital spending is marginally reduced to prioritize completion of ongoing projects. And value for money, the larger deficit reflects legacy fiscal rigidities, rather than policy loosening. Financing relies on domestic borrowing complemented by concessional multilateral loans.”
Following the FEC approval, President Tinubu is expected to proceed to the National Assembly with the budget presentation, where the full details of the 2026 budget will be released
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