The House of Representatives has passed the ₦58.47 trillion 2026 Appropriation Bill for second reading, endorsing the fiscal framework proposed by President Bola Ahmed Tinubu amid claims of improved macroeconomic stability and tighter monetary discipline.
Leading the debate, House Leader Prof. Julius Ihonvbere highlighted what lawmakers described as positive economic indicators, including a projected 3.98 percent growth rate in 2026, a significant reduction in inflation to about 14.45 percent from roughly 25 percent, improved government revenues, export expansion, and rising foreign direct investment.
It was further disclosed that the naira has stabilized around ₦1,400 to the dollar, recovering from previous levels exceeding ₦1,800, while Nigeria’s external reserves have climbed to a seven-year high of approximately $47 billion, sufficient to cover more than 10 months of imports.
Lawmakers emphasized that no new naira has been printed since the Tinubu administration assumed office, describing this as evidence of fiscal restraint that has contributed to exchange-rate stability and broader macroeconomic control.
On budget structure, total revenue for 2026 is projected at ₦34.33 trillion against planned expenditure of ₦58.18 trillion, resulting in a deficit of ₦23.85 trillion. Non-debt recurrent spending stands at ₦15.25 trillion, while capital expenditure has been increased to ₦26.08 trillion, a shift lawmakers described as a strategic reorientation toward long-term development and infrastructure investment.
Sectoral allocations prioritize security and defense, infrastructure, education, and health, reflecting what legislators framed as an attempt to balance national security needs with human capital development and economic expansion.
The budget assumptions are anchored on an oil benchmark of approximately $64.85 per barrel, projected crude output of 1.84 million barrels per day, and an exchange rate target of ₦1,400 to the dollar, with oil revenue remaining a central pillar of government financing.
The passage of the bill for second reading clears the way for committee-level scrutiny, where lawmakers are expected to examine allocations in greater detail before final approval.
