With Nigeria planning to spend ₦58.18 trillion for 2026 Appropriation Bill, citizens and investors alike are watching closely to see how the federal government plans to allocate limited resources in the face of critical economic and security challenges.
Titled the “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” the budget reflects a clear set of national priorities that will shape policy, spending, and public expectations throughout the year.
Not unmindful of the fact that the 2025 Nigerian Appropriation Act generally covers the fiscal year ending December 31, 2025, but its capital component has seen extensions, with a recent push to run until March 31, 2026, to close out prior projects, allowing the 2026 budget to start fresh with a single fiscal cycle in April 2026, here are top government spending to track most in 2026:
1. Security and Defence: Top of the Spending Ladder
Perhaps the most striking shift in the 2026 budget, but not surprising, is the emphasis on national security.
With insecurity remaining a major drag on economic activity, social stability, and investor confidence, the government has allocated a whopping ₦5.41 trillion to defence and security sectors, making it the single largest sectoral allocation in the budget.
This allocation is designed to support modernisation of the Armed Forces; intelligence-driven policing; border and community security initiatives, and a unified national counter-terrorism doctrine.
There is a saying that ‘good fences make good neighbours’, will Nigeria build wall across its borders, starting in 2026? Well, we are watching.
Officials argue that without security, economic reforms cannot thrive, especially in agriculture, mining, and trade sectors which depend on safe environments to operate.
2. Human Capital Development: Education and Health in Focus
Human capital development is another cornerstone of the 2026 budget. While not as large as defence, allocations to education (₦3.52 trillion) and health (₦2.48 trillion) represent major commitments to Nigeria’s future workforce and overall wellbeing.
Education spending is expected to support expanded access to learning like the NELFUND student loan scheme; skills development programmes like the 3MTT, amongst others.
On the other hand, health funding is targeted at strengthening primary health care networks; disease prevention and control, especially with the U.S. Government under President Donald Trump putting an end to health-related aids to countries like Nigeria.
Essentially, maternal and child health services must be given priority.
However, critics note that these allocations still fall below international benchmarks for education and health spending, raising questions about whether the funding will be sufficient to address deep-seated gaps in public services.
3. Infrastructure: Sustaining Growth through Capital Investment
In spite of a reduced allocation from the previous year, infrastructure remains a key government spending priority in 2026, with ₦3.56 trillion earmarked for transport, power, energy, and logistics development.
Government officials have reaffirmed that infrastructure underpins economic activity by reducing the cost of doing business; improving market access, and enhancing competitiveness.
But the downward adjustment compared to 2025 levels has sparked debate among stakeholders about the pace and scale of national development projects.
4. Capital Expenditure and Productive Investment
Overall, capital expenditure, investment in long-term assets like roads, ports, and factories, accounts for over ₦26 trillion of the total budget.
This signals the government’s continued focus on boosting productive sectors that can generate jobs and stimulate growth.
The 2026 budget also reflects efforts to attract private capital into strategic sectors; expand agricultural productivity through mechanisation and irrigation programmes, and support value chains that can reduce food insecurity.
5. Fiscal Discipline, Deficit and Debt Management
The government has emphasised fiscal discipline as a central theme of the 2026 budget. With projected revenue of ₦34.33 trillion and total spending of ₦58.18 trillion, the budget carries a deficit of ₦23.85 trillion, one of the largest in Nigeria’s history.
To manage this gap, the government has pledged:
- Tighter budget execution
- Stronger revenue mobilisation through tax reforms and improved compliance
- Greater oversight of Government-Owned Enterprises
Experts warn that heavy reliance on borrowing and weak social spending could compound inequality and slow inclusive development if not carefully managed.
6. Agriculture and Economic Diversification
Although not as headline-grabbing, agriculture and economic diversification remain important priorities. The 2026 budget includes measures to support smallholder farmers; enhance food value chains; and promote rural mechanisation and climate-resilient farming
These allocations reflect ongoing efforts to reduce Nigeria’s overdependence on oil revenues and stimulate broad-based economic growth.
The Big Picture:
The 2026 Appropriation Bill reveals a government balancing immediate security needs with long-term investments in human capital and economic infrastructure.
While critics caution that social sector funding lags behind global benchmarks, the government’s emphasis on discipline, transparency, and implementation efficiency could be defining features of public finance in the year ahead.
