15 June, 2026. 21:10.

ABUJA — As Nigeria enters the second half of 2026, attention is turning to how the 2026 federal budget is performing and what adjustments may come in the mid-year review. The budget, passed late 2025, was framed as a “delivery budget” with emphasis on completing ongoing projects rather than starting new ones.

Three key focus areas in 2026
1. Capital project execution
Ministries and agencies were directed to prioritize 60% of capital releases for projects already above 70% completion. Roads, rail links, and irrigation schemes in food-producing states are getting priority funding to ensure they open to public use before year-end. The goal: move money from paper to completed bridges, dams, and farm access roads.

2. Food security and agriculture
With food prices still a concern for households, the 2026 budget increased allocation for dry-season farming, fertilizer access, and farm security. States in the North-Central and Middle Belt are receiving more support for irrigation and rural roads to move harvests to markets. The idea is to reduce post-harvest loss and lower transport costs for farmers.

3. Power and energy efficiency
Off-grid and mini-grid solutions for rural LGAs and SME clusters remain a budget priority. Funds are earmarked for solar hybrid projects in areas with weak grid supply. The government is also pushing “cost-reflective” reforms in the power sector while expanding targeted subsidies for low-income households.

Revenue and fiscal discipline
To fund spending without heavy borrowing, the 2026 budget relies on improved tax collection, customs digitization, and plugging leakages in government agencies. The Treasury Single Account system is being tightened further, and MDAs are required to publish quarterly budget performance online.

Finance officials say oil revenue is still part of the plan, but non-oil revenue from VAT, company tax, and digital services is expected to carry more weight than in previous years.

What citizens are watching now
At mid-year, the big questions are:
1. Are capital funds actually reaching sites and contractors?
2. Is food production rising enough to affect market prices before Q4?
3. Are power projects in rural areas delivering more hours of electricity?

The Minister of Budget and Planning is expected to present a budget performance report to the National Assembly in July 2026. That report will show which sectors are on track and where releases may be re-allocated.

Local impact
For states and LGAs, the 2026 budget means more matching grants are available if they complete counterpart projects on time. States that finish rural roads or primary health centers on schedule can access extra federal funding before December.