Nigeria anticipates a 4.28% GDP deficit in 2026 as Tinubu suggests a spending plan
President Bola Tinubu stated that Nigeria anticipates a budget deficit of 4.28% of GDP in 2026 while announcing the government’s 58.18 trillion naira ($40 billion) expenditure plan, which is intended to strengthen economic reforms and accelerate growth.
He informed lawmakers on Friday that the deficit will amount to approximately 23.85 trillion naira.
“The 2026 budget is anchored on realism, prudence, and growth orientation,” Tinubu said to MPs in Abuja. “We will spend with purpose, manage debt with discipline, and pursue growth that is broad-based, not narrow, and sustainable, not temporary.”
The proposed budget, which focuses on areas like security, infrastructure, education, and health, allots 26.08 trillion naira for capital projects and 15.52 trillion naira for debt payments.
The budget includes a target oil output of 1.84 million barrels per day and is predicated on a predicted crude oil price of $64.85 per barrel. About two-thirds of Nigeria’s export revenue comes from oil.
Additionally, a 1,400 naira to dollar exchange rate is projected in the budget.
According to Tinubu, foreign reserves increased to a seven-year high of $47 billion while inflation fell to an annual rate of 14.45% in November from 24.23% in March.
“These results are not by chance. They represent challenging but thoughtful policy decisions,” he stated.
On December 3, Tinubu’s budget head predicted 4.68% growth for 2026, slightly higher than the World Bank’s 4.4% estimate, although he did not provide a growth target.
