By Amofokhai Williams
The Senate on Tuesday passed the 2026 Appropriation Bill of N68.32 trillion, approving a staggering N9.09 trillion upward revision requested by President Bola Tinubu in what lawmakers described as a necessary step to regularize outstanding capital obligations and fund strategic infrastructure projects.
The passage came just hours after Senate President Godswill Akpabio read a presidential letter seeking the budget adjustment, and lawmakers adopted the report of the Senate Committee on Appropriations without substantive debate or questioning of the additional spending .
The swift approval, completed within a single legislative day, drew immediate scrutiny from observers who noted the absence of the rigorous oversight senators had promised earlier in the fiscal process .
The approved budget comprises N32.29 trillion for capital expenditure, N15.43 trillion for recurrent spending, N15.81 trillion for debt servicing, and N4.80 trillion for statutory transfers .
The capital component—accounting for 47 percent of total spending, represents the largest share in Nigeria’s recent fiscal history, underscoring the administration’s stated commitment to infrastructure development .
Senate Appropriations Committee Chairman Solomon Adeola Olamilekan, who presented the report that formed the basis of the passage, explained that the N9.09 trillion increase from the initial N58.47 trillion presented in December 2025 was driven primarily by three factors: outstanding capital obligations carried over from the 2025 fiscal cycle, new priority projects, and strategic interventions across critical sectors.
“The adjustments were necessary to regularize outstanding legacy capital commitments and ensure that the 2026 budget is not burdened by unresolved obligations from previous fiscal cycles,” Adeola told the chamber.
According to the breakdown, N5.71 trillion was allocated to cover rolled-over capital projects from the 2025 budget that could not be completed due to revenue shortfalls. An additional N2 trillion was earmarked for priority projects across multiple sectors that were omitted from the original proposal.
Specific allocations approved include N478.6 billion as equity contribution for presidential legacy light rail projects in Lagos, Kano, Kaduna, and Ogun states, as well as feasibility studies for urban rail systems in Enugu and Maiduguri.
The health sector received N482.76 billion for priority interventions tied to existing bilateral commitments, while the judiciary secured substantial funding: N98.5 billion for the Court of Appeal, N36.7 billion for the Supreme Court, and N268.54 billion to strengthen judicial capacity ahead of the 2027 general elections.
Adeola also highlighted N8.96 billion allocated for feasibility studies on the Calabar–Maiduguri corridor and the Maiduguri–Sokoto superhighway, part of broader infrastructure expansion plans .
To finance the expanded budget, the government has raised the oil benchmark from $65 to $75 per barrel, a move expected to generate an additional N2.59 trillion in revenue. The telecommunications sector is projected to contribute significantly, with major operators MTN Nigeria and Airtel Nigeria expected to yield about N874 billion in company income tax .
However, the government also plans to rely on external borrowing, with the Senate simultaneously approving $6.9 billion in new loan requests on Tuesday. The facilities include $5 billion from First Abu Dhabi Bank in the United Arab Emirates and $1.9 billion from Citibank London for the rehabilitation of the Apapa and Tin Can Island ports in Lagos .
The loan approvals bring the total external facilities sought by the Tinubu administration since 2023 to over $40 billion, according to records cited during the plenary session.
The Senate Committee on Appropriations defended the borrowing, with Adeola arguing that “if borrowing is used for the purpose it is meant for, there is no problem with it.”
