By NIyi Jacobs
With less than a week to the commencement of the 2026 fiscal year, budget preparations have gained momentum across Nigeria as 34 of the 36 states have presented their 2026 appropriation bills to their respective Houses of Assembly, leaving only Borno and Rivers States yet to submit their proposals.
As of Wednesday, December 24, 2025, findings by BusinessNg indicate that most states have taken critical legislative steps to ensure a smooth start to the January–December 2026 budget cycle, reflecting improved fiscal planning and coordination at the subnational level.
Out of the 34 states that have presented their budgets, nine have already had their appropriation bills passed and signed into law, allowing for immediate implementation in the new fiscal year. These states are Bayelsa, Delta, Edo, Ekiti, Jigawa, Kaduna, Katsina, Niger and Taraba, with a combined expenditure estimate of approximately ₦8.609 trillion.
In addition, the Houses of Assembly in Abia, Anambra, Gombe, Imo, Kebbi, Ondo, Osun, Yobe and Nasarawa have passed their 2026 budgets, which are currently awaiting assent from their respective governors.
The surge in budget activity comes amid rising state-level spending. According to BudgIT’s 2025 State of States report, total expenditure by states reached ₦15.63 trillion in the 2024 fiscal year, representing a 64.69 per cent increase from ₦9.49 trillion in 2023. Lagos State alone accounted for ₦2.37 trillion, nearly 15 per cent of total subnational spending.
For the 2026 fiscal year, a major trend emerging across at least 19 states is increased allocation to capital expenditure, with a strong focus on infrastructure development and projects designed to stimulate economic growth and unlock productive activities.
In its 2026 Economic Outlook Report titled Hope and Politics of Economic Recovery, BusinessNg highlighted the need for states to explore capital market instruments as alternative funding sources beyond annual budgetary provisions. The report noted that such strategies could help expand state economies, create jobs and boost tax revenues without increasing tax rates.
The BusinessNg Economic and Market Intelligence Unit identified Lagos, Abia, Enugu and possibly Ogun States as frontrunners in leveraging capital market opportunities to unlock long-term economic value.
As states edge closer to the 2026 fiscal year, early budget passage is expected to enhance smoother implementation, strengthen fiscal discipline and support better economic outcomes, while attention remains focused on Borno and Rivers States to conclude their budget submission processes.
