ActionAid Nigeria has expressed concerns over the Federal Government’s proposed 2026 Appropriation Bill, warning that its financing structure, rising deficit, and weak sectoral allocations threaten fiscal sustainability, public debt management, and inclusive development.

In a statement signed by its Country Director, Andrew Mamedu, ActionAid said that although the proposed N58.18 trillion budget, representing a 5.8 per cent increase over the 2025 approved budget, signals continuity in government programmes, it raises red flags over accountability and social sector neglect.

The organisation noted that the Federal Government had revised the 2024 Appropriation Act by increasing its size from N35.06 trillion to N43.56 trillion and extending its implementation to December 31, 2025, while the 2025 budget was extended to March 31, 2026, with its size reduced from N54.99 trillion to N48.32 trillion.

According to it, the practice of extending budget timelines without robust parliamentary scrutiny weakens accountability and encourages off-budget spending, particularly for capital projects, adding that the simultaneous operation of the 2024, 2025, and proposed 2026 budgets undermines transparency and legislative oversight.

The organisation also faulted the National Assembly for post-submission alterations to budget proposals, including upward revisions to sectoral allocations without secured financing plans, which it said had contributed to persistent funding gaps, delayed releases, and the rollover of capital projects.

ActionAid described the measures as “stop-gap and cosmetic,” arguing that they failed to address the structural weaknesses responsible for Nigeria’s recurring budget failures.

It stressed the need for amendments to the Fiscal Responsibility Act (FRA) 2007 and constitutional reforms to enforce clear and binding budget timelines.

On fiscal outlook, ActionAid noted that the proposed 2026 budget projects federally retained revenue of N34.33 trillion against total expenditure of N58.18 trillion, resulting in a deficit of N23.85 trillion. It said the figure represents a 69 per cent increase over the 2025 deficit and a 160 per cent increase over the 2024 deficit, making it the largest in Nigeria’s history.

ActionAid said weak funding for social protection programmes such as cash transfers, school feeding, and smallholder farmer support could push more households into poverty amid rising food prices and unemployment.

It also faulted the delayed submission of the Medium-Term Expenditure Framework, Fiscal Strategy Paper, and the 2026 Appropriation Bill in December 2025, describing it as a violation of the Fiscal Responsibility Act, and urged the Federal Government and National Assembly to end the practice of running multiple budgets, reduce reliance on borrowing, protect social sector funding, and prioritise human development in the 2026 budget. It called for a people-centred, transparent, and accountable budget to promote inclusive development and restore public trust in governance.