Nigeria’s National Assembly has approved a revised ₦68.30 trillion budget for the 2026 fiscal year, marking a significant increase from the initial ₦58.47 trillion proposal submitted in December 2025. The upward revision, requested by President Bola Ahmed Tinubu, is aimed at accommodating outstanding capital projects and addressing unresolved fiscal obligations carried over from previous budget cycles.
The expanded expenditure framework underscores the Federal Government’s commitment to sustaining infrastructure development and ensuring continuity in key national projects. To support the increased budget size, lawmakers also approved a $6 billion external borrowing plan. The funding is expected to be sourced from international financial institutions, including $5 billion from First Abu Dhabi Bank and $1 billion from Citi.
According to details of the approved plan, at least 40 per cent of the borrowed funds will be directed toward capital projects spanning both the 2025 and 2026 fiscal cycles, with additional allocations earmarked for infrastructure development and debt servicing. However, the revised budget is projected to widen Nigeria’s fiscal deficit significantly, with estimates rising above 6 per cent of Gross Domestic Product (GDP), equivalent to approximately ₦31.46 trillion, compared to the earlier projection of 4.28 per cent.
The budget also sets an ambitious economic growth target of 4.68 per cent, slightly above the World Bank’s 4.4 per cent forecast. The appropriation bill now awaits presidential assent to become law.
Meanwhile, Nigeria’s economic recovery continues to show resilience, as reflected in the latest Purchasing Managers’ Index (PMI) report released by the Central Bank of Nigeria (CBN). The composite PMI stood at 53.2 points in March 2026, marking the sixteenth consecutive month of expansion in economic activities nationwide.
Although the figure represents a slight moderation from the 56.4 points recorded in February, it remains firmly above the 50-point threshold, indicating sustained growth across key sectors of the economy. Out of 36 subsectors surveyed, 31 recorded expansion, highlighting broad-based improvements in business conditions.
Sectoral analysis shows that the industry sector led the expansion with a PMI reading of 54.0 points, driven by increased production levels and growth in 14 of its 17 subsectors. The agriculture sector also maintained a strong performance, recording 52.8 points and extending its growth streak to 20 consecutive months. Similarly, the services sector posted 52.0 points, marking its fourteenth month of continuous expansion.
Key indicators such as new orders, employment levels, and inventories remained positive across all sectors, reflecting steady domestic demand and improving operational capacity among businesses.
In the financial markets, system liquidity experienced a downward trend during the week, declining from ₦5.93 trillion at the start of the week to ₦5.41 trillion by close. Despite the reduction, money market rates remained relatively stable, with the Open Buy Back (OBB) rate holding at 22.00 per cent, while the Overnight (OVN) rate edged up slightly to 22.31 per cent.
The Treasury Bills market remained active, supported by aggressive liquidity management by the Central Bank of Nigeria through multiple Open Market Operations (OMO) auctions. Investor demand remained strong, with subscriptions significantly oversubscribed across auction sessions. Stop rates remained elevated, reflecting tight monetary conditions and sustained investor appetite for short-term government securities.
Similarly, the FGN bond market experienced a largely bearish trend, driven by higher stop rates at the primary market auction and investor reactions to the expanded fiscal outlook following the budget approval. Yields rose across key maturities, although some recovery was observed toward the end of the week as bargain hunting emerged.
In the external market, Nigeria’s Eurobond segment recorded mixed sentiments influenced by global geopolitical developments and U.S. economic data. Despite volatility, average benchmark yields declined slightly to 7.39 per cent on a week-on-week basis.
On the currency front, the Naira depreciated marginally by 0.03 per cent to close at ₦1,380.97 per dollar at the Nigerian Foreign Exchange Market (NFEM) window, reflecting relative stability in the foreign exchange market.
The equities market closed the week on a flat note, with the NGX All-Share Index maintaining its position at 201,698.9 points, while market capitalisation held steady at approximately ₦129.8 trillion. Despite mixed trading activity, the market recorded a modest week-on-week gain of 0.39 per cent, driven by gains in select stocks such as Multiverse, UPDC REIT, and International Energy Insurance.
Overall, the Nigerian economy continues to demonstrate resilience amid evolving fiscal and global dynamics. Analysts note that the successful implementation of the 2026 budget, alongside sustained monetary and structural reforms, will be critical in maintaining growth momentum and strengthening investor confidence in the months ahead.
