The Senate has justified the Federal Government’s proposed N25.91 trillion budget deficit for the 2026 fiscal year, insisting that borrowing remains unavoidable given persistent revenue shortfalls and rising expenditure demands.
Chairman of the Senate Committee on Appropriations, Senator Solomon Adeola, said attention should be focused not merely on the size of the deficit but on how borrowed funds are deployed to drive economic growth.
“What is critical is not the deficit itself, but how it is funded and how efficiently the funds are utilised,” Adeola said.
Under the 2026 Appropriation Bill, the Federal Government projects total revenue of N33.19 trillion against planned expenditure of N58.47 trillion, leaving a deficit of N25.91 trillion to be financed largely through borrowing.
Adeola stressed the need for stronger fiscal discipline, aggressive revenue expansion, and optimal use of national assets to reduce future deficits.
He also argued that the continued payment of electricity subsidies is unsustainable. “Electricity subsidies must end if we are serious about freeing resources for infrastructure and human capital development,” he said.
Meanwhile, Senate President Godswill Akpabio, represented by Deputy Senate President Barau Jibrin, described the 2026 budget as a defining moral challenge for the legislature and the executive.
“This budget is a moral test. Nigerians must feel its impact in their daily lives through improved services, infrastructure, and economic opportunities,” Akpabio said.
Adding expert perspectives, Accountant General of the Federation, Shamseldeen Olujimi, called for tighter financial controls and outcome-driven spending.
Fiscal policy expert, Dr. Olatilewa Adebajo, urged strict enforcement of the Fiscal Responsibility Act, warning that unchecked revenue leakages continue to undermine budget implementation.
“Without discipline and enforcement, even the largest budgets will fail to deliver value,” Adebajo said.
The Senate maintained that while borrowing may be unavoidable in the short term, sustained reforms and accountability are essential to placing Nigeria on a more sustainable fiscal path.