Nigeria: public finances

How big is Nigeria's 2026 budget?

Nigeria's 2026 federal budget proposal set aggregate spending at ₦68.32 trillion, according to the 2026 Appropriation Bill published by the Budget Office of the Federation. It included ₦32.29 trillion for capital projects, ₦15.43 trillion for non-debt recurrent spending, ₦15.81 trillion for debt service and ₦4.80 trillion for statutory transfers.

The bill's tables are headed "2026 Budget Proposal"; the signed Appropriation Act on the Budget Office documents page is a scanned image, so amounts passed by the National Assembly may differ. Capital spending in Nigeria is often released later than planned, so budget implementation reports show what was actually spent.

Official sources: Budget Office: 2026 Appropriation Bill (PDF) · Budget Office: 2026 budget documents

What is Nigeria's budget deficit for 2026?

Nigeria's 2026 federal budget proposal projected a deficit of ₦31.46 trillion, according to the 2026 Appropriation Bill. Revenues were estimated at ₦36.87 trillion against spending of ₦68.32 trillion. The deficit was to be financed by ₦29.22 trillion of new borrowing, ₦2.05 trillion of project-tied loans and ₦189.16 billion from asset sales.

The deficit covers the federal government only, not the states. Actual deficits depend on oil revenue, which is sensitive to crude prices and output. Federal and state debt is reported each quarter by the Debt Management Office.

Official sources: Budget Office: 2026 Appropriation Bill (PDF)

How much VAT does Nigeria collect?

Nigeria collected ₦2.42 trillion in value added tax in the first quarter of 2026, up 9.98% from ₦2.20 trillion in the fourth quarter of 2025, according to the NBS VAT report. Local payments were ₦1.11 trillion, foreign payments ₦830.47 billion and VAT on imports ₦477.55 billion.

VAT revenue is shared among the federal government, states and local governments through the Federation Account Allocation Committee. The NBS compiles the figures from the national tax authority's collections by sector. Quarter-on-quarter changes can reflect the timing of payments as well as changes in spending.

Official sources: NBS: Value Added Tax Q1 2026

How much company income tax does Nigeria collect?

Nigeria collected ₦1.37 trillion in company income tax in the first quarter of 2026, down 8.08% from ₦1.49 trillion in the fourth quarter of 2025, according to the NBS Company Income Tax report. Domestic payments were ₦538.91 billion and foreign payments ₦828.82 billion.

Company income tax is paid on company profits, and payments tend to bunch around filing deadlines, so quarterly figures move with the tax calendar. Foreign payments are made in foreign currency by firms such as oil companies and are converted to naira, so the exchange rate also affects the totals.

Official sources: NBS: Company Income Tax Q1 2026

How much was shared by FAAC this month?

The Federation Account Allocation Committee (FAAC) shared ₦4.50 trillion in July 2026 from revenue collected in June, according to the NBS FAAC disbursement report. The 13% derivation fund paid to oil-producing states was ₦197.61 billion.

FAAC shares revenue from oil, company income tax, VAT and customs duties among the federal government, the 36 states and the 774 local governments using a formula set in law. Some revenue is deducted first as cost of collection for agencies such as the national revenue service, which received ₦108.83 billion. The NBS report lists the amounts received by every state.

Official sources: NBS: FAAC Disbursement, July 2026

How much revenue do Nigerian states generate?

Nigeria's 36 states and the Federal Capital Territory generated ₦5.15 trillion in internally generated revenue (IGR) in 2025, up 40.93% from ₦3.65 trillion in 2024, according to the NBS State IGR report. Lagos raised the most, at ₦1.77 trillion, followed by Rivers (₦428.42 billion).

IGR is the revenue states raise themselves, as opposed to their share of federation revenue from FAAC. Taxes made up 73.64% of the total, and pay-as-you-earn income tax alone was ₦2.64 trillion. States with large formal workforces collect more PAYE, which is why Lagos accounts for about a third of the total.

Official sources: NBS: States Internally Generated Revenue 2025

What is Nigeria's debt to GDP ratio?

According to the IMF, general government gross debt in Nigeria was 36.1% of GDP in 2025. Since 2005 it has ranged from 5.2% of GDP (2008) to 39.3% of GDP (2024). Sub-Saharan Africa median: 53.0% of GDP; Nigeria is 41st highest of 46. Of 185 countries with 2025 data, 138th highest.

Does Nigeria's government borrow more than it raises?

In 2025, general government net lending or borrowing in Nigeria was -1.8% of GDP, according to the IMF, a deficit. Since 2005 it has ranged from -4.0% of GDP (2020) to 6.2% of GDP (2006). Across Sub-Saharan Africa the middle value was -3.0% of GDP, and Nigeria placed 16th highest of 47. Of 188 countries with 2025 data, 68th highest.

How much does Nigeria's government take in?

According to the IMF, general government revenue in Nigeria was 10.2% of GDP in 2025. Since 2005 it has ranged from 3.6% of GDP (2016) to 16.1% of GDP (2005). Across Sub-Saharan Africa the middle value was 18.4% of GDP, and Nigeria placed 45th highest of 47. World rank, highest first: 182nd of 187.

What is Nigeria's government spending?

According to the IMF, general government spending in Nigeria was 12.0% of GDP in 2025. The peak was 12.9% of GDP in 2007 and the low 6.9% of GDP in 2016. Sub-Saharan Africa median: 20.8% of GDP; Nigeria is 45th highest of 46. World rank, highest first: 183rd of 186.

How much does Nigeria spend on its military?

The latest figure from SIPRI, for 2025, is 0.9% of GDP. Since 2005 it has ranged from 0.3% of GDP (2006) to 1.0% of GDP (2021). It is 30th highest of 44 in Sub-Saharan Africa, where the median is 1.3% of GDP. World rank, highest first: 113th of 149.