ActionAid Nigeria has raised concerns over the Federal Government’s proposed 2026 Appropriation Bill, warning that the spending plan could exacerbate Nigeria’s debt burden while continuing to underfund key social sectors critical to poverty reduction and inclusive growth.
In its assessment of the ₦58.18 trillion budget proposal, the organisation noted that the 5.8 per cent increase over the 2025 approved budget falls short of addressing entrenched fiscal and structural challenges. It argued that the size of the deficit, the financing framework and sectoral priorities pose significant risks to fiscal sustainability and public accountability.
ActionAid Nigeria expressed particular concern over the continued extension of budget implementation timelines, which has resulted in the 2026 budget running concurrently with extended 2024 and 2025 budgets. According to the organisation, the practice undermines transparency, weakens legislative oversight and heightens the risk of mismanagement of public funds, especially in capital and social sector spending.
In a statement issued on Tuesday by its Country Director, Dr Andrew Mamedu, the group also criticised post-submission alterations by the National Assembly, including upward revisions of budget allocations without clearly identified funding sources. It said such practices contribute to financing gaps, delayed fund releases and the rollover of projects across fiscal years.
On the fiscal outlook, ActionAid Nigeria pointed out that the proposed 2026 budget projects revenue of ₦34.33 trillion against total expenditure of ₦58.18 trillion, leaving a deficit of ₦23.85 trillion. It described the figure as the largest budget deficit in Nigeria’s history, marking a significant increase compared with the deficits recorded in 2024 and 2025.
The organisation warned that sustained reliance on borrowing, without corresponding investment in productive and social sectors, could deepen inequality and constrain long-term economic development.
Despite government assurances that education, health, agriculture, infrastructure and security are priority areas, ActionAid Nigeria said allocations to social sectors remain inadequate. It noted that education is allocated ₦3.52 trillion, about six per cent of the total budget, while health receives ₦2.48 trillion, just over four per cent—both well below international benchmarks. By contrast, defence spending is projected at ₦5.41 trillion.
The group further faulted the budget for failing to adequately address underemployment and poor-quality jobs, particularly among women and rural populations, citing insufficient investment in agriculture, rural infrastructure and women-led enterprises. It also warned that weak funding for social protection programmes could intensify hardship for millions of Nigerians grappling with rising living costs.
ActionAid Nigeria also criticised the late submission of the Medium-Term Expenditure Framework, the Fiscal Strategy Paper and the 2026 Appropriation Bill, describing the delays as a violation of the Fiscal Responsibility Act.
The organisation urged the Federal Government and the National Assembly to end the practice of running multiple budgets, strengthen fiscal discipline, reduce dependence on borrowing and significantly increase funding for education, health, agriculture and social protection.
It stressed that Nigeria’s fight against poverty cannot be won through debt-driven spending, but through a people-centred and accountable budget that places human development at the centre of national priorities.
