Non-Governmental organisation, BudgIT, has called on the Federal Government to enforce zero tolerance for extra-budgetary spending and off-book expenditures as the election period draws near.

It warned that failure to prioritise strict fiscal discipline could undermine fiscal sustainability and long-term economic development.

The group noted that Nigeria’s revenue performance had remained weak in the budgeting system over the years, while public trust in governance is fragile.

With a 2026 budget of N68.32 trillion, it is the largest fiscal plan in Nigeria’s history.

With the total projected revenue of N36.87 trillion against planned expenditure of N68.32 trillion, the group, in a statement signed by its Country Director, Vhayala Kwaga, said the government faced a fiscal deficit of N31.45 trillion, equivalent to 6.41 per cent of GDP, well above the Fiscal Responsibility Act threshold of three per cent.

“In practical terms, the government can only finance 53.9 per cent of its budget from actual revenues, leaving 46.1 per cent dependent on borrowing and loans. One can reasonably infer a structural fiscal imbalance that has, despite several warnings from observers, become embedded in Nigeria’s fiscal framework,” the statement noted.

On expenditure, BudgIT stated that the budget reflected an expansionary inclination, with total spending rising significantly, noting that capital expenditure accounted for N32.28 trillion (47.13 per cent) in the 2026 approved budget, signalling a stated commitment to infrastructure and long-term growth.

“However, this is constrained by the weight of debt obligations. Debt servicing alone is projected at N15.8 trillion, consuming roughly 23 per cent of total expenditure and nearly 45 per cent of projected revenue.”

This creates tight fiscal space, where a substantial portion of government earnings is pre-committed, restricting investments in critical sectors,” BudgIT said.

It added: “Sectoral allocations reveal persistent misalignment between spending and development priorities. While security receives a substantial N6.98tn (10.21 per cent of the budget), critical human capital sectors remain underfunded. Health accounts for just 5.2 per cent of the budget, again far below the 15 per cent Abuja Declaration benchmark, while education receives approximately four per cent, well below global standards. These gaps have direct consequences: a health system heavily reliant on out-of-pocket spending and an education system struggling with over 18 million out-of-school children.”

BudgIT’s Head of Research and Policy Advisory, Adejoke Akinbode, said the 2026 budget reflected a government attempting to balance growth ambitions with fiscal realities but hemmed in by structural inefficiencies, saying: “The numbers point to an unambiguous conclusion: Nigeria’s challenge is not just revenue generation, but revenue realism, expenditure discipline, sound debt management and institutional credibility. Without addressing these foundational issues, the current trajectory risks exacerbating fiscal vulnerability, limiting economic growth and worsening social outcomes.”