Categories: Economy

“Budget Chaos and Governance Gaps Driven by Fiscal Indiscipline”

“Nigeria’s annual budgeting process is under scrutiny as the 2026 budget proposals reveal widening fiscal gaps and unrealistic revenue assumptions. Experts warn that the government’s reliance on borrowing and politically motivated revisions threatens economic stability.”

 

“President Bola Tinubu recently submitted the 2026-2028 Medium Term Expenditure Framework and the 2026 Appropriation Bill to the National Assembly. While the MTEF/FSP passed with minimal changes, the Appropriation Bill is expected to follow a similar path, prioritizing lawmakers’ interests over the public good.”

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“Capital expenditure continues to underperform. Only 17% of the planned 2025 capital spending has been released, while the 2026 budget relies on optimistic crude oil assumptions, pegging output at 1.84 million barrels per day—well above recent production levels.”

“With debt servicing taking up over a quarter of the proposed budget, analysts say fiscal space for social and infrastructure investment is shrinking, raising concerns about sustainability and governance in Nigeria’s public finance system.”

Marvelous Oluchi

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