ActionAid Nigeria (AAN) has issued a stark warning over the Federal Government's proposed 2026 budget, highlighting severe risks to the nation's fiscal health and the continued marginalisation of critical social services. The organisation's review of the N58.18 trillion Appropriation Bill, which represents a 5.8% increase over the 2025 budget, uncovers deep structural problems in Nigeria's budget planning and execution.
Multiple Budgets and Weakened Oversight
The analysis points to a dangerous precedent of running multiple federal budgets concurrently. The government revised the 2024 budget upwards by 24.26% to N43.56 trillion and extended its implementation to December 2025. Similarly, the 2025 budget was reduced by 12.13% to N48.32 trillion and extended to March 2026.
ActionAid Nigeria argues that while these moves may seem corrective, they create a chaotic fiscal environment. "The effective operation of three Federal budgets concurrently undermines transparency, weakens legislative oversight, and heightens the risk of misallocation and misuse of public resources," the organisation stated. It cautioned that extending timelines without robust parliamentary scrutiny opens the door to off-budget spending and weak accountability, especially for capital projects.
The group also blamed the National Assembly for contributing to the problem through post-submission alterations to budget proposals. These revisions, often without secured financing plans, create artificial funding gaps leading to delayed releases and project rollovers, which distort national development priorities.
Record Deficit and Inadequate Social Investment
Against this backdrop of weak fiscal governance, the 2026 budget projects a staggering deficit of N23.85 trillion. This figure marks a 69% increase over the 2025 deficit and a 160% surge from 2024, making it the largest fiscal shortfall in Nigeria's history. The budget expects federally retained revenue of N34.33 trillion against total expenditure of N58.18 trillion.
ActionAid Nigeria cautioned that continued reliance on borrowing, without targeted investment in productive sectors, will constrain fiscal space, deepen inequality, and worsen poverty. The organisation's review found that allocations to essential social sectors remain grossly inadequate:
- Education receives N3.52 trillion (6.05% of the budget), far below UNICEF's 15–25% benchmark for SDG 4.
- Health is allocated N2.48 trillion (4.26%), significantly short of the 15% Abuja Declaration commitment.
- In contrast, Defence gets N5.41 trillion, accounting for 9.30% of total expenditure.
This disparity reflects a continued imbalance in funding priorities away from services that directly impact citizens' well-being. The budget also fails to make adequate investments in agriculture per the Maputo Declaration, women-led enterprises, and rural infrastructure needed to tackle underemployment.
Urgent Calls for Reform and Accountability
Dr. Andrew Mamedu, Country Director of ActionAid Nigeria, emphasised that the delayed submission of the Medium-Term Expenditure Framework (MTEF) and the 2026 bill in December 2025 constitutes a clear violation of the Fiscal Responsibility Act (FRA) 2007. This recurring breach points to systemic weaknesses.
In light of its findings, AAN has called on the National Assembly and the Federal Government to take decisive action. Key recommendations include:
- Ending the practice of running multiple budgets and ensuring strict adherence to fiscal calendars.
- Reducing reliance on borrowing and enforcing fiscal discipline to prevent debt escalation.
- Substantially increasing allocations and ensuring timely releases to health, education, agriculture, and social investment programmes.
- Amending the Fiscal Responsibility Act and relevant constitutional sections to enforce timely budget submission and processes.
Dr. Mamedu concluded that a budget prioritising debt servicing over human development will deepen inequality and entrench poverty. "Nigeria cannot borrow its way out of poverty; only a people-centred, equitable, and accountable budget can deliver inclusive development and restore public trust in governance," he stated.
