According to reporting by BusinessDay, the Nigerian Senate has initiated a review to significantly reduce the proposed N58.472 trillion 2026 national budget. Lawmakers expressed deep concerns that the revenue projections underpinning the fiscal plan are “unrealistic,” given the current economic climate and fluctuations in the global oil market.
The upper legislative chamber noted that while the executive branch remains optimistic about funding the record-breaking expenditure, the reality of Nigeria’s debt-to-revenue ratio suggests a need for caution. The budget, which was intended to transition the economy from stabilization to expansion, may now see heavy cuts in non-essential capital projects to avoid a widening fiscal deficit.
This development has been mirrored in reports from The Nation, which noted that the Senate Committee on Appropriation is seeking a “more pragmatic” approach to the 2026 fiscal year.
The Punch further validated the story, quoting Senator Solomon Adeola, who remarked, “We must ensure that we do not pass a budget that relies on paper money while our actual receipts tell a different story.”
Premium Times also reported on the tension, citing a legislative source who stated, “The era of bloated projections without corresponding revenue streams must end if we are to achieve true fiscal discipline.”
Echotitbits take:
This legislative pushback highlights a growing rift between the executive’s ambitious growth agenda and the legislature’s fiscal conservatism. If the budget is significantly slashed, we may see a slowdown in infrastructure projects, but it could conversely help stabilize the Naira by reducing the need for deficit-funded borrowing. Watch for the executive’s revised revenue-generating strategies in the coming weeks.
Source: BusinessDay – https://businessday.ng/news/article/senate-considers-trimming-n58-472tn-2026-budget-proposal-over-unrealistic-revenue-projections/, February 20, 2026
Photo credit: BusinessDay
