ActionAid Nigeria has issued a stark warning about the Federal Government's proposed 2026 Appropriation Bill, stating that its current design threatens the nation's fiscal health, debt management, and inclusive development goals.
Structural Flaws and Accountability Gaps
The organisation, in a statement by its Country Director, Andrew Mamedu, acknowledged that the N58.18 trillion proposal indicates continuity in government programs. However, it raises serious red flags regarding accountability and the neglect of critical social sectors.
ActionAid highlighted the problematic practice of extending budget implementation periods. It noted that the 2024 budget was revised from N35.06 trillion to N43.56 trillion and extended to December 31, 2025. Simultaneously, the 2025 budget was reduced from N54.99 trillion to N48.32 trillion and extended to March 31, 2026.
"The simultaneous operation of the 2024, 2025, and proposed 2026 budgets undermines transparency and legislative oversight," the group stated. It argued that extending timelines without robust parliamentary scrutiny weakens accountability and encourages off-budget spending, especially for capital projects.
The organisation also criticised the National Assembly for making post-submission alterations to budget proposals, including increasing sectoral allocations without clear financing plans. This, it said, leads to persistent funding gaps, delayed releases, and the rollover of capital projects.
Record Deficit and Underfunded Social Sectors
On the fiscal outlook, ActionAid's analysis reveals alarming numbers. The proposed budget projects federally retained revenue of N34.33 trillion against total expenditure of N58.18 trillion, creating a massive deficit of N23.85 trillion.
This deficit represents a 69% increase over the 2025 deficit and a staggering 160% increase over the 2024 shortfall, making it the largest in Nigeria's history.
The group warned that continued reliance on borrowing without productive investment will deepen inequality and worsen poverty. It particularly faulted the allocations to essential social sectors:
- Education: Allocated N3.52 trillion, which is just 6.05% of the total budget, far below global benchmarks.
- Health: Allocated N2.48 trillion, amounting to only 4.26%, well short of the Abuja Declaration target.
- Defence: In contrast, received N5.41 trillion, or 9.3% of the budget.
ActionAid also expressed concern over inadequate investment in agriculture, women-led enterprises, and rural infrastructure. It stated that underemployment, especially among women and rural populations, will persist without targeted spending.
Call for Urgent Reforms and People-Centred Budgeting
The organisation described the government's current budgetary measures as "stop-gap and cosmetic," failing to address the structural weaknesses behind Nigeria's recurring budget failures.
It stressed the urgent need for amendments to the Fiscal Responsibility Act (FRA) 2007 and constitutional reforms to enforce clear, binding budget timelines. ActionAid also faulted the delayed submission of key budget documents in December 2025, calling it a violation of the Fiscal Responsibility Act.
The group issued a clear call to action for the Federal Government and the National Assembly:
- End the practice of running multiple budgets concurrently.
- Reduce reliance on borrowing and protect social sector funding.
- Prioritise human development in the 2026 budget.
ActionAid concluded that a continued emphasis on debt servicing and recurrent expenditure over human development will deepen inequality and weaken social cohesion. It demanded a people-centred, transparent, and accountable budget to promote inclusive development and restore public trust in governance.
