BREAKING: FEC approves N58.47trn 2026 budget proposal, amends MTEF 2026- 2028
By Kunle Sanni- Abuja
The Federal Executive Council (FEC) has approved a 2026 budget proposal of N58.47 trillion, alongside amendments to the Medium-Term Expenditure Framework (MTEF) 2026–2028.
Director-General of the Budget Office of the Federation, Mr. Tanimu Yakubu, disclosed this on Friday after the conclusion of the FEC meeting presided over by President Bola Tinubu at the Presidential Villa, Abuja.
Yakubu said the proposed aggregate expenditure for 2026 represents a six per cent increase over the 2025 budget estimate. The total spending envelope includes N4.98 trillion in projected expenditure by Government-Owned Enterprises (GOEs) and N1.37 trillion for grants and donor-funded projects.
According to him, the projected aggregate expenditure also covers statutory transfers of N4.1 trillion and debt service obligations of N15.52 trillion, which include N3.39 trillion earmarked for the sinking fund to retire maturing local contractors’ and creditors’ obligations.
Personnel costs, including pensions, are estimated at N10.75 trillion, reflecting a seven per cent increase over the 2025 provision. This figure includes N1.02 trillion for personnel costs of Government-Owned Enterprises. Overhead costs are projected at N2.22 trillion.
Capital expenditure for 2026 is pegged at N25.68 trillion, representing a 1.8 per cent reduction compared to the 2025 capital allocation. Yakubu explained that the marginal reduction reflects a more conservative approach to capital planning and a deliberate focus on completing ongoing projects.
He noted that capital allocation priorities include N11.3 trillion for Ministries, Departments and Agencies (MDAs), N2.05 trillion for multilateral and bilateral loans, and N1.8 trillion as the capital component of the development levy.
Yakubu said the 2026 budget is designed to strike a careful balance between macroeconomic stabilisation and development imperatives, in line with the medium-term fiscal framework. He stressed that the underlying assumptions are conservative and realistic, particularly with respect to oil price benchmarks, exchange rate projections and expected dividends from Government-Owned Enterprises.
