*Works, agric receive lion’s share of N3tn, N1.1tn for capital projects
*Presidency to spend N100.5bn, NSA gets N286bn in capex
Emmanuel Addeh in Abuja
The federal government expects to raise more than N189 billion in 2026 from the sale of national assets and the privatisation of selected public holdings, positioning asset disposals as a critical plank in financing what is set to be Nigeria’s largest budget in nominal terms.
Details contained in the 2026 Appropriation Bill seen by THISDAY showed that the N189.16 forms part of a N25.27 trillion financing package designed to plug a wide fiscal deficit arising from expenditure that significantly exceeds projected revenues.
The projection sits alongside N23.04 trillion in new debt financing and about N2.05 trillion in multilateral and bilateral project tied loans, underlining the increasing reliance on non-oil funding sources to support government operations and capital investments.
Although the assets for sale and privatisation in 2026 were not explicitly listed, the federal government has been considering a broad range of transactions as part of an ongoing effort to monetise public holdings, reduce fiscal pressure and reposition the state away from direct participation in commercial activity. These plans cut across oil and gas, power, transport, industry, real estate and other strategic sectors.
In September last year, the Director General of the Bureau of Public Enterprises (BPE), Ayodeji Gbeleyi, confirmed that 91 federal assets would be privatised as part of ongoing efforts to optimise public enterprises, attract investment, and boost efficiency across key sectors of the economy.
He stated that out of the 91 firms the government had earmarked for privatisation or commercialisation, 16 are in the oil and gas sector, including refineries and depots, though he did not name them. He added that 12 operate in agriculture, 20 in aviation, and 28 are in other public enterprises.
He further noted that the remaining firms include those in mines and steel, transport, eco-tourism, as well as two agencies under the Federal Capital Territory Administration. According to the DG, equity in 35 of the firms will be fully privatised, while equity in 57 will undergo partial privatisation.
But according to the 2026 bill, aggregate government expenditure for 2026 is expected to be N58.47 trillion, against total projected revenues and inflows of N33.20 trillion, leaving a deficit of N25.27 trillion to be financed through a combination of borrowing, asset disposals and external project loans.
An analysis of the budget framework showed that while asset sales contribute less than 1 per cent of total spending, the proceeds are treated as a strategic funding source that complements debt financing and supports fiscal sustainability objectives.
Within the revenue structure, government expects N23.09 trillion as its share of gross federation revenues, N4.31 trillion from independent revenues, N4.98 trillion from government owned enterprises net of operating surplus, N1.37 trillion from grants and N1.99 trillion from other sources, including domestic recoveries, assets and fines.
Besides, the 2026 budget allocated N23.21 trillion to capital expenditure, representing the largest single component of spending and accounting for nearly 40 per cent of total outlays. This scale of capital investment heightened the importance of diversified financing sources, including asset sales, to avoid excessive reliance on borrowing.
Debt service remained a dominant expenditure line, with N15.91 trillion allocated to servicing domestic and foreign obligations, consuming more than a quarter of the entire budget. This burden has sharpened policy debates around the need to expand non debt revenues, including through privatisation.
By contrast, recurrent non-debt expenditure was pegged at N15.25 trillion, while statutory transfers amounted to N4.10 trillion, reflecting constitutionally mandated allocations to key institutions and intervention agencies.
However, the N189.16 billion projection also comes amid renewed scrutiny of government owned enterprises (GOEs) and their contribution to public finances. While GOEs are expected to generate nearly N9.40 trillion in gross revenue in 2026, only N4.98 trillion is projected to accrue to the federation after accounting for operating surplus retained by the entities.
Within the financing plan, the debt financing of N23.04 trillion remained the dominant source, highlighting the scale of Nigeria’s funding challenge. The asset sales component, though comparatively small, is viewed as a signal of intent to gradually rebalance financing away from borrowing.
Multilateral and bilateral project tied loans of N2.05 trillion are expected to support infrastructure and development programmes, often on concessional terms that are cheaper than commercial borrowing.
While the projected N189.16 billion from asset sales is listed as a financing item in the 2026 Appropriation Bill, the government also listed how it intends to spend it, particularly in sectors that absorb large capital allocations but also carry significant recurrent costs.
In terms of capital expenditure, the presidency got an allocation of N100.5 billion; the Ministry of Defence got N464.4 billion; the Office of the National Security Adviser got an allocation of N286.9 billion as capital expenditure, while the Secretary to the Government of the Federation will receive N113.5 billion.
Besides, the Ministries of Works as well as that of Agriculture and Food Security received the lion’s share of the capital spending, with the sums of N3.06 trillion and N1.13 trillion respectively, underscoring the critical importance of both ministries to the country.
In the same vein, Foreign Affairs was allocated N56.1 billion; Information and National Orientation received N22.6 billion for capital expenditure; Art, Culture and Creative Economy got N28.2 billion, while the Ministry of Police Affairs was allocated N60.9 billion.
