By, Olawale Ogunbusola

Economic experts have raised alarms over President Bola Tinubu’s proposal to increase Nigeria’s 2026 budget from N58.4 trillion to N68.3 trillion, warning it could plunge the country into a debt trap without a clear repayment plan.

The proposed increase, approved by the House of Representatives, has sparked concerns over Nigeria’s already fragile economy, with analysts predicting higher taxes, inflation, and worsening economic pressures.

Prof. Femi Saibu, University of Lagos, cautioned that expanding the fiscal deficit amid rising inflation would compound economic challenges, advising the government to reduce governance costs instead.

However, Dr. Aliyu Ilias endorsed the move, citing rising oil benchmark assumptions and global uncertainties, while David Etim emphasized the need for transparency in funding and implementation.

The budget breakdown reveals significant allocations to statutory transfers, debt servicing, and capital expenditure, with the Presidency, Ministries of Defence, Agriculture, and Works receiving substantial funds.

Tinubu’s administration faces pressure to balance economic growth with fiscal responsibility as Nigeria navigates election-year spending and global economic volatility.