FG Targets N189bn Asset Sales to Fund 2026 Budget Gap

The Federal Government plans to raise N189 billion from the sale of national assets to help finance the 2026 budget. The initiative is part of a broader strategy to close funding gaps created by a wide revenue shortfall.

Details of your the proposal are contained in the 2026 Appropriation Bill, which outlines a total financing requirement of about N25.27 trillion for the fiscal year.

Wide Gap Between Revenue and Spending

Total government expenditure for 2026 is projected at N58.47 trillion, while expected revenue stands at N33.20 trillion. This imbalance has compelled the government to explore multiple funding options.

The asset sales, though modest in size, are intended to complement borrowing and external financing measures already built into the budget.

Borrowing Remains the Major Funding Source

New borrowings of about N23.04 trillion account for the largest share of deficit financing in the proposal. In addition, the government plans to secure about N2.05 trillion from multilateral and bilateral project loans.

Officials argue that the mix of funding sources will help sustain key programmes without excessive reliance on a single option.

Privatisation Plans Under Consideration

These assets cut across oil and gas, aviation, transport and agriculture. About 35 enterprises are slated for full privatisation, while 57 are listed for partial divestment.

These assets cut across oil and gas, aviation, transport and agriculture. About 35 enterprises are slated for full privatisation, while 57 are listed for partial divestment.

Rising Debt Service Obligations

The financing framework also reflects Nigeria’s growing debt burden. The government has allocated N15.91 trillion for debt servicing in the 2026 fiscal year.

Analysts say the push for asset sales signals an attempt to slow debt growth and ease long-term fiscal pressure.

Revenue Expectations for 2026

Under the revenue framework, the government expects N23.09 trillion from gross federation revenue and N4.31 trillion from independent revenue sources. Government-owned enterprises are projected to contribute nearly N4.98 trillion as operating surpluses.

As asset monetisation gains momentum, discussions continue around transparency, valuation and the broader impact on public finance sustainability.