President Bola Ahmed Tinubu on Friday presented a substantial ₦58.18 trillion budget to a joint session of Nigeria’s National Assembly, outlining a fiscal plan for 2026. Titled the “Budget of Consolidation, Renewed Resilience, and Shared Prosperity,” it aims to transition the nation’s economy from a period of challenging reforms towards tangible improvements in the living standards of its citizens. The President acknowledged the significant hardships faced by Nigerians due to recent structural adjustments.

During his address, President Tinubu underscored that while the path of reform is often difficult, it remains the most reliable route to achieving lasting stability for the nation. He articulated a vision where the ongoing economic adjustments would pave the way for a more robust and equitable future, signalling a shift in focus towards delivering visible benefits to the populace following a period of necessary fiscal tightening.

The administration cited several key economic indicators as evidence that its “Renewed Hope” agenda is beginning to yield positive results. Nigeria’s economy recorded a growth rate of 3.98% in the third quarter of 2025, demonstrating resilience. Furthermore, headline inflation significantly decreased to 14.45% by November 2025, a notable reduction from over 24% earlier in the year, indicating a degree of price stabilization. Foreign reserves also reached a seven-year high of $47 billion, providing coverage for approximately 10 months of imports.

The 2026 budget is anchored on what President Tinubu described as “conservative and realistic” assumptions. These include an oil price benchmark of $64.85 per barrel and an exchange rate of ₦1,400 to the US Dollar. The proposed total expenditure stands at ₦58.18 trillion, with an anticipated revenue of ₦34.33 trillion, leading to a projected budget deficit of ₦23.85 trillion, which represents 4.28% of the Gross Domestic Product.

A significant element of the President’s presentation was the unveiling of a stern “zero-tolerance” policy regarding national security. President Tinubu announced a new counter-terrorism doctrine that broadens the definition of “terrorist” to encompass anyone found wielding unauthorized weapons. This reclassification officially extends to bandits, kidnappers, and ethnic militias, intensifying the government’s approach to internal security threats.

Crucially, the President issued a direct warning that any political protectors, traditional rulers, or community leaders found to be facilitating or negotiating on behalf of these newly defined terrorist groups would also face prosecution under the same classification. To bolster this enhanced security posture, a substantial allocation of ₦5.41 trillion has been earmarked for Defence and Security, aimed at modernizing the Armed Forces and improving their operational capabilities.

Beyond security, the budget places a strong emphasis on human capital development and critical infrastructure. President Tinubu reiterated that “no nation can grow beyond the quality of its people,” dedicating significant portions of the budget to social sectors. Education receives ₦3.52 trillion, continuing support for the Nigerian Education Loan Fund (NELFUND), which has already assisted over 418,000 students across the country.

The health sector is allocated ₦2.48 trillion, representing 6% of the total budget, and this is further complemented by an additional $500 million in grant funding from the United States for targeted interventions. Infrastructure development is also a priority, with ₦3.56 trillion designated for completing ongoing road, rail, and port projects designed to stimulate private investment and enhance economic connectivity.

President Tinubu also issued a clear directive on fiscal discipline and accountability, particularly to Government-Owned Enterprises (GOEs), declaring 2026 as a year of “stronger discipline.” He mandated the full digitization of revenue collection processes to eliminate leakages and ensure that every naira spent translates into tangible public value and effective service delivery across all government operations.

The President concluded his address by emphasizing that “the greatest budget is not the one we announce; it is the one we deliver.” He called for robust unity and collaboration between the executive and legislative branches of government to ensure the effective and timely implementation of the budget, ultimately for the benefit of all Nigerians. The National Assembly is now expected to commence immediate deliberations on the Appropriation Bill to facilitate a prompt start to the 2026 fiscal year.

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