Shettima Presides As FEC Okays N58.47trn 2026 Budget Proposal

Deji Elumoye in Abuja 

Vice-President Kashim Shettima on Friday presided over the Federal Executive Council meeting (FEC) which approved the 2026 Appropriation Bill.

This is the first time Shettima will be presiding over FEC meeting since the inauguration of the Bola Tinubu administration on May 29, 2025.

The approval cleared the way for President Tinubu to present the budget proposal to a joint session of the Senate and the House of Representatives later in the day.

The emergency FEC meeting was convened at the State House, Abuja, to consider a single-item memorandum on the 2026 budget estimates ahead of their formal presentation to the National Assembly.

Briefing newsmen after the meeting, the Director-General of the Budget Office of the Federation, Dr Tanimu Yakubu, said the approved 2026 budget has an aggregate expenditure of N58.47 trillion, representing a six per cent increase over the 2025 budget estimate.

According to him, the total expenditure framework includes projected spending by government-owned enterprises (GOEs) amounting to N4.98 trillion, as well as N1.37 trillion earmarked for grants and donor-funded projects. 

Statutory transfers are estimated at N4.1 trillion, while debt service obligations are projected at N15.52 trillion, including N3.39 trillion set aside for the sinking fund to retire maturing local debts owed to contractors and other creditors.

Personnel costs, including pensions, are projected at N10.75 trillion, representing a seven per cent increase over the 2025 provision. 

This figure includes N1.02 trillion allocated to government-owned enterprises. Overhead costs are estimated at N2.22 trillion.

The budget proposes a capital expenditure of N25.68 trillion, which is 1.8 per cent lower than the 2025 capital provision. 

Yakubu explained that the marginal reduction reflects a more conservative approach to capital planning, with emphasis on completing ongoing projects and ensuring value for money.

He said capital allocation priorities include N11.3 trillion for ministries, departments and agencies (MDAs), N2.05 trillion for multilateral and bilateral loan-funded projects, and N1.8 trillion representing the capital component of the development levy.

Yakubu noted that the 2026 budget was designed to strike a balance between macroeconomic stabilisation and development imperatives within the medium-term fiscal framework. 

He said the underlying assumptions were conservative and realistic, particularly with respect to oil price, exchange rate and dividends from government-owned enterprises.

On the revenue outlook, Yakubu said  projected revenues are expected to decline year-on-year, but stressed that non-oil revenues now account for about two-thirds of total government receipts, confirming a structural shift away from oil dependence. 

He identified corporate income tax, value-added tax, customs duties and independent revenues as the main fiscal anchors.

Details later…