Nigeria will continue to rely on borrowing to finance its widening budget deficit, as the Senate warns that weak revenue mobilisation and rising debt obligations pose serious fiscal risks.
ABUJA — The Senate has disclosed that Nigeria will continue borrowing to fund its expanding budget deficit, even as lawmakers and fiscal experts cautioned that rising debt levels and poor revenue performance could push the country to the brink. The position was made known during the public hearing on the 2026 Appropriation Bill at the National Assembly, where the Chairman of the Senate Committee on Appropriations, Solomon Adeola, said the proposed budget projects total expenditure of N58.47 trillion against expected revenue of N33.19 trillion, leaving a deficit of N25.27 trillion.
Adeola said debt servicing alone is expected to consume N15.90 trillion in the 2026 fiscal year, stressing that borrowing had become unavoidable due to unpredictable revenue inflows and pressing development needs. “Nigeria cannot avoid borrowing because revenue inflows are unpredictable and development needs are enormous,” he said. “The key question is not whether we borrow, but how responsibly we manage these deficits.” He added that the Senate would prioritise external loans, public-private partnerships, asset optimisation, privatisation and Eurobond issuances, while ensuring that borrowing does not crowd out private-sector credit.
The senator also warned that the National Assembly would no longer approve budget rollovers or extensions beyond December of any fiscal year, citing weak implementation and abandoned projects. “Never again will budget extensions be granted. We must enforce strict timelines and ensure that policies translate into real outcomes,” he said, adding that service-wide vote spending would face stricter scrutiny. The hearing also highlighted poor budget performance by MDAs, with the Minister of Health, Prof. Mohammed Ali Pate, revealing that the Federal Ministry of Health received only N36 million of the N218 billion appropriated for its 2025 capital expenditure.
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