The federal government has increased the 2026 budget from the N54.46 trillion outlined in the Medium-Term Expenditure Framework (MTEF) to N58.18 trillion, mainly to accommodate the recent massive recruitment into the military, police, and other security agencies announced by President Bola Tinubu.

The Director-General of the Budget Office, Mr. Tanimu Yakubu, disclosed the revised figure following a Federal Executive Council (FEC) meeting on Friday, shortly before the president presented the budget to the National Assembly.

A Presidency source explained that Ministries, Departments, and Agencies (MDAs) had already submitted their proposals based on the earlier budget circular. The expansion of security personnel therefore necessitated an increase in the overall budget. The source added that the budget details would be finalized after the presentation to ensure proper review and defense by MDAs before the bill returns to the National Assembly.

The proposed N58.18 trillion expenditure represents a 6% increase over the 2025 budget estimate of N49.7 trillion. It includes projected spending by government-owned enterprises (N4.98 trillion) and grants or donor-funded projects (N1.37 trillion). Statutory transfers are pegged at N4.1 trillion, while debt service totals N15.52 trillion, including N3.388 trillion allocated to the sinking fund for retiring maturing obligations.

Personnel costs, including pensions, amount to N10.75 trillion, a 7% increase over 2025, with overhead costs projected at N2.22 trillion. Non-oil revenue continues to grow, accounting for roughly two-thirds of total receipts, reflecting a gradual move away from oil dependency.

The budget projects revenues of N34.33 trillion, leaving a deficit of N23.85 trillion, or 4.28% of GDP. Recurrent (non-debt) spending is set at N15.25 trillion, while capital expenditure totals N26.08 trillion.

Security remains the top priority, with N5.41 trillion allocated, followed by infrastructure (N3.56 trillion), education (N3.52 trillion), and health (N2.48 trillion).