The House of Representatives on Thursday passed the N58.47tn 2026 Appropriation Bill for second reading, as lawmakers endorsed the proposal presented by President Bola Tinubu to stabilise the economy, strengthen security, and accelerate capital development.
President Tinubu had presented the budget, titled “The Budget of Consolidation, Renewed Resilience and Shared Prosperity,” to a joint sitting of the National Assembly on December 19, 2025.
Leading the debate on the general principles of the bill, the House Leader, Prof. Julius Ihonvbere, acknowledged that the ongoing economic reforms could bring short-term challenges but said they were necessary to achieve long-term and sustainable prosperity.
He urged lawmakers to support the proposal, stressing that sustainable development must be the foundation of national growth.
Ihonvbere cited improving economic indicators, including a projected GDP growth rate of 3.98 per cent and a decline in inflation to 14.45 per cent from about 25 per cent. He also pointed to gains in government revenue, export expansion, and increased foreign direct investment.
According to him, the naira has stabilised at around N1,400 to the dollar from over N1,800, while external reserves have risen to a seven-year high of $47bn—enough to cover more than 10 months of imports. He added that fiscal discipline had been strengthened, noting that no new naira had been printed.
The 2026 budget estimates total revenue at N34.33tn and total expenditure at N58.18tn, resulting in a deficit of N23.88tn.
Non-debt recurrent expenditure is projected at N15.25tn, while capital expenditure stands at N26.08tn, marking a shift from previous budgets where recurrent spending dominated.
Key assumptions of the budget include an oil benchmark price of $64.85 per barrel and daily production of 1.84 million barrels.
Sectoral allocations prioritise security and defence with N5.41tn, followed by infrastructure at N3.56tn, education at N3.54tn, and health at N2.48tn.
Ihonvbere told lawmakers that while the government was not flawless, it remained the duty of the legislature to provide guidance and oversight in the interest of the 360 federal constituencies.
With no further debate from members, Speaker Tajudeen Abbas called for a voice vote, and the House overwhelmingly approved the bill for second reading.
The Speaker subsequently announced a two-week recess to allow lawmakers time to scrutinise the proposal ahead of its final consideration when plenary resumes on February 17, 2026.
