Govt targets grassroots growth in 2026 spending plan

The Federal Government has disclosed that the 2026 budget will prioritise ward-based development, infrastructure expansion, security strengthening and increased domestic production as Nigeria prepares for a future with sharply reduced global aid flows.

Speaking at a stakeholders’ engagement with the Nigeria International Non-Governmental Organisation (INGO) Forum in Abuja on Monday, Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, said the next fiscal plan is anchored on the Medium Term Expenditure Framework (MTEF) approved by the Federal Executive Council (FEC).

According to him, the new framework sets out revenue assumptions, production targets and growth strategies designed to push Nigeria toward its ambition of becoming a $1 trillion economy.

Bagudu told participants that President Bola Ahmed Tinubu and state governors have agreed on a new approach that takes development directly to communities. “Mr. President and the state governors have met and approved the Renewed Hope Ward Development Plan, where in each of the 8,809 wards, the programs will be designed ward-specific to ensure that economic prosperity in those wards is enhanced,” he said.

He added that the President and governors also agreed to launch the Renewed Hope Infrastructure Fund to increase capital spending nationwide. “There is an irreducible minimum of infrastructure investment that we need to continue making in order to sustain the trajectory of macroeconomic reforms that we are achieving,” he said, noting that the three tiers of government will also scale up investment in security.

Part of the plan includes improving the capacity of security agencies. Bagudu explained that “training institutions of security agencies are being assessed under a committee led by the governor of Enugu State,” adding that an initial report has already been submitted. “They indicated that an initial sum of $100 billion will be required to boost some of those training institutions,” he said. He recalled that the President had earlier directed the recruitment of more security personnel and the recall of officers serving in non-operational roles.

The minister further disclosed that President Tinubu and the National Economic Council have approved measures to reduce revenue losses in the crude oil, gas, and solid minerals sectors. He said there are persistent “allegations that a lot of our precious stones, a lot of our gold are being mined illegally,” and assured that steps are being taken to curb the losses.

He stressed that the Federal Government and governors also resolved to intensify support for domestic production. “Last but not the least, the President agreed with the state governors that we should embark on more measures to support domestic production,” Bagudu stated.

Bagudu explained that the engagement with INGOs was part of a broader effort to improve coordination with development partners and strengthen local capacity for the country’s 2026–2030 growth plans. The government, he said, is using the forum to review existing partnerships and identify what should change going forward. He noted that INGOs play a significant role in helping the public better understand ongoing economic reforms and in helping Nigeria learn from global experiences.

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 “We are here to show appreciation on behalf of our nation to all the International Non-governmental Organisations that are engaged in one way or the other with our country’s progress, to hear from them what we can do differently, what we can do better, and how we can learn more from them, particularly given our federal structure,” he said. “They are instrumental in the way that we can do better as a country, because they have experienced how some countries, where they either come from or they have been engaged with, have solved the problems that we are dealing with currently. We have embarked on bold, tough reforms under the able and courageous leadership of President Bola Ahmed Tinubu. We couldn’t have done those reforms without their support, because we need public acceptance,” he added.

Earlier in the meeting, Director of the Nigeria INGO Forum, Camilla Higgins, warned that Nigeria is among countries facing a faster transition away from foreign aid despite rising humanitarian needs. She said the global decline in development assistance is occurring at a time when Nigeria’s humanitarian situation remains severe.

Higgins disclosed that the 2025 Humanitarian Response Plan sought $910 million but had only achieved 24 percent of the target so far. According to her, this makes it urgent to help Nigeria develop stronger domestic financing systems. “What we are experiencing in Nigeria is an example of what’s being experienced globally, that international overseas development assistance is shrinking dramatically,” she said.

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She explained that Nigeria has operated an internationally coordinated humanitarian system for over a decade, but that structure will soon wind down. “We’re now going to see that structure dismantled in Nigeria in order to hand over responsibility more to national actors. The point that we are stressing here is that this is not a reflection of a reduction in need in Nigeria, quite the opposite,” she said.

Higgins cautioned that as international resources decline, needs across the country are rising. She said the priority now is “to partner very strongly with the government of Nigeria to put in place alternative systems and structures that can continue to meet the needs of people across the country,” adding that building national capacity and redirecting more domestic resources will be critical in the years ahead.