ActionAid Nigeria Warns of Rising Debt, Weak Social Spending in 2026 Budget Proposal

Michael Olugbode in Abuja

ActionAid Nigeria has raised serious concerns over the federal government’s proposed 2026 Appropriation Bill, warning the budget could worsen Nigeria’s debt burden and further sideline key social sectors critical to poverty reduction and inclusive growth.

In its review of the N58.18 trillion budget proposal, the organisation said the 5.8 per cent increase over the 2025 approved budget does not sufficiently address long-standing fiscal and structural challenges.

Instead, it noted the financing plan, size of the deficit, and sectoral priorities pose risks to fiscal sustainability and accountability.

ActionAid Nigeria expressed particular concern over the continued extension of budget implementation timelines, which has resulted in the 2026 budget running alongside extended 2024 and 2025 budgets.

According to the organisation, operating multiple budgets simultaneously weakens transparency, limits effective legislative oversight, and increases the risk of mismanagement of public funds, especially for capital and social sector projects.

The group, in a statement on Tuesday by its Country Director, Dr. Andrew Mamedu, also pointed to repeated post-submission changes by the National Assembly, including upward adjustments to allocations without secured funding sources, as a key factor contributing to funding gaps, delayed releases, and the rollover of projects across fiscal years.

On the fiscal outlook, ActionAid Nigeria highlighted the proposed 2026 budget projects revenue of N34.33 trillion against total spending of N58.18 trillion, leaving a deficit of N23.85 trillion.

It described the figure as the largest deficit in Nigeria’s history, representing sharp increases over the 2024 and 2025 deficits.

It warned that heavy reliance on borrowing, without strong investment in productive and social sectors, could deepen inequality and constrain long-term development.

ActionAid Nigeria said that despite government claims that education, health, agriculture, infrastructure, and security are priority areas, lamented that allocations to social sectors remain inadequate.

Mamedu in the statement noted that education allocated N3.52 trillion, about six per cent of the total budget, and health receiving N2.48 trillion, just over four per cent – are both far below international benchmarks, and in contrast with defence allotted spending standing at N5.41 trillion.

The organisation also faulted the budget for failing to address underemployment and poor-quality jobs, particularly among women and rural populations, noting insufficient investment in agriculture, rural infrastructure, and women-led enterprises.

It further warned that weak funding for social protection programmes could worsen hardship for millions of Nigerians facing rising living costs.

ActionAid Nigeria also criticised the late submission of the Medium-Term Expenditure Framework, Fiscal Strategy Paper, and the 2026 Appropriation Bill, describing it as a breach 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 cannot overcome poverty through debt-driven spending, but through a people-centred and accountable budget that prioritises human development.