Tijjani Usman MuhammadNigeria’s proposed 2026 appropriation budget — with a total expenditure of ₦58.18 trillion — allocates a significant portion of public funds to debt obligations, raising concerns about the government’s fiscal priorities. In the budget presented to the National Assembly, the government earmarked about ₦15.52 trillion for debt servicing, equivalent to roughly 27 per cent of the planned total expenditure. This means more than one-quarter of the entire budget will be used just to pay interest and principal on government borrowings before other critical areas receive funding.
The 2026 budget framework — described as the “Budget of Consolidation, Renewed Resilience and Shared Prosperity” — includes other major spending categories such as ₦26.08 trillion for capital projects and ₦15.25 trillion for recurrent (non-debt) expenditure. The projected budget deficit stands at ₦23.85 trillion or about 4.28 per cent of Gross Domestic Product (GDP).
Economists and fiscal analysts say that allocating such a large share of public funds to debt obligations limits the government’s ability to invest in infrastructure, education, health, and job-creating sectors. Nigeria’s debt burden has continued to grow in recent years, partly due to persistent budget deficits and borrowing to cover major spending gaps, which experts warn could constrain economic growth if not managed carefully.
The heavy debt service allocation has also drawn attention because it reduces fiscal space for social and development needs, even as inflation and cost-of-living pressures linger for many Nigerians. Critics argue that without measures to expand revenue and control borrowing costs, the country’s debt servicing requirements could increasingly crowd out priority spending.
