The House of Representatives on Thursday unanimously passed for second reading the 2026 Appropriation Bill, a N58.47 trillion proposal presented by President Bola Tinubu, with lawmakers expressing strong support for its focus on capital projects, security, and economic stabilisation.
Titled “The Budget of Consolidation, Renewed Resilience and Shared Prosperity,” the N58.18 trillion expenditure estimate (with a projected revenue of N34.33 trillion and a deficit of N23.85 trillion) marks a deliberate shift towards higher capital spending at N26.08 trillion, surpassing non-debt recurrent expenditure of N15.25 trillion.
Leading the debate on the general principles of the bill, House Leader Prof. Julius Ihonvbere described the proposal as a continuation of necessary economic reforms initiated since President Tinubu took office in May 2023 amid severe fiscal challenges.
He acknowledged that the administration inherited a difficult economic situation and that the reforms—widely understood to include the removal of fuel subsidies and unification of exchange rates—had brought “pains and inconveniences” to many Nigerians.
“Development that is not sustainable is not development at all,” Ihonvbere told the House, stressing that the measures were designed to deliver long-term, multi-layered prosperity.
He highlighted several positive indicators underpinning the 2026 projections: an expected economic growth rate of 3.98 per cent, inflation declining to 14.45 per cent from around 25 per cent, a stabilised naira exchange rate of about N1,400 to the dollar (down from over N1,800), and external reserves reaching a seven-year high of approximately $47 billion, enough to cover more than 10 months of imports.
Ihonvbere also noted the administration’s fiscal discipline, stating, “We have not printed a single naira since this government came into office. That fiscal discipline has helped stabilise the economy.”
The budget is built on an oil price benchmark of $64.85 per barrel and daily production of 1.84 million barrels, figures that reflect cautious planning amid global oil market volatility.
Priority sectors received substantial allocations: N5.41 trillion for security and defence to tackle persistent insecurity and food production challenges; N3.56 trillion for infrastructure; N3.54 trillion for education; and N2.48 trillion for health.
Ihonvbere urged members to back the proposal, emphasising that capital expenditure now exceeds recurrent spending—a departure from previous budgets where recurrent items often dominated and limited tangible development.
“This is a departure from the past, where recurrent spending outweighed capital investment. Here, capital expenditure is higher, which is what drives real development,” he said.
He reminded lawmakers of their constitutional oversight role, adding, “We are not saying the government is perfect, but it is our duty, as representatives of 360 constituencies, to guide it to do the right things at all times.”
With no member rising to contribute to the debate, Speaker Tajudeen Abbas put the question to a voice vote, and the bill sailed through for second reading with overwhelming approval.
The swift passage without opposition reflects broad acceptance among lawmakers of the administration’s economic direction, though public scrutiny of the budget’s implementation is expected to intensify in the coming weeks.
In Nigeria’s legislative tradition, the second reading focuses on the general principles of a bill, while detailed scrutiny occurs at the committee stage before third reading and final passage.
Following the vote, Speaker Abbas announced a two-week recess to allow members to consult with constituencies and prepare for detailed work on the budget. The House is scheduled to resume on February 17, 2026, ahead of final consideration and passage of the Appropriation Bill.
President Tinubu had laid the proposal before a joint session of the National Assembly on December 19, 2025, continuing the practice of early budget presentation aimed at ensuring timely passage and implementation from January 1.
The 2026 budget represents the third full-year appropriation under the Tinubu administration, building on earlier efforts to reorient public spending towards infrastructure and human capital while addressing inherited fiscal imbalances and revenue constraints.
