Vice President Kashim Shettima on Friday presided over the Federal Executive Council (FEC) which approved the 2026 Appropriation Bill.
This is the first time Shettima will be presiding over FEC meeting since the inauguration of the Bola Tinubu administration on May 29, 2025.
The approval cleared the way for President Tinubu to present the budget proposal to a joint session of the Senate and the House of Representatives later in the day
The emergency FEC meeting was convened at the State House, Abuja, to consider a single-item memorandum on the 2026 budget estimates ahead of their formal presentation to the National Assembly.
Briefing newsmen after the meeting, Director-General of the Budget Office of the Federation, Dr Tanimu Yakubu, said the approved 2026 budget has an aggregate expenditure of ₦58.47 trillion, representing a six per cent increase over the 2025 budget estimate.
According to him, the total expenditure framework includes projected spending by government-owned enterprises (GOEs) amounting to ₦4.98 trillion, as well as ₦1.37 trillion earmarked for grants and donor-funded projects.
Statutory transfers are estimated at ₦4.1 trillion, while debt service obligations are projected at ₦15.52 trillion, including ₦3.39 trillion set aside for the sinking fund to retire maturing local debts owed to contractors and other creditors.
Personnel costs, including pensions, are projected at ₦10.75 trillion, representing a seven per cent increase over the 2025 provision.
This figure includes ₦1.02 trillion allocated to government-owned enterprises. Overhead costs are estimated at ₦2.22 trillion.
The budget proposes a capital expenditure of ₦25.68 trillion, which is 1.8 per cent lower than the 2025 capital provision.
Yakubu explained that the marginal reduction reflects a more conservative approach to capital planning, with emphasis on completing ongoing projects and ensuring value for money.
He said capital allocation priorities include ₦11.3 trillion for ministries, departments and agencies (MDAs), ₦2.05 trillion for multilateral and bilateral loan-funded projects, and ₦1.8 trillion representing the capital component of the development levy.
Yakubu noted that the 2026 budget was designed to strike a balance between macroeconomic stabilisation and development imperatives within the medium-term fiscal framework.
He said the underlying assumptions were conservative and realistic, particularly with respect to oil price, exchange rate and dividends from government-owned enterprises.
On the revenue outlook, Yakubu said projected revenues are expected to decline year-on-year, but stressed that non-oil revenues now account for about two-thirds of total government receipts, confirming a structural shift away from oil dependence.
He identified corporate income tax, value-added tax, customs duties and independent revenues as the main fiscal anchors.
Details later…
Deji Elumoye
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