The Senate has said the economic reforms introduced by President Bola Tinubu, though painful, were unavoidable and are already laying the foundation for long-term stability, inclusive growth, and shared prosperity.
Senator Solomon Adeola, Chairman of the Senate Committee on Appropriations, made the remarks on Monday during the public hearing on the 2026 Appropriation Bill at the National Assembly Complex in Abuja.
Adeola said Nigeria is at a defining point in its economic journey, transitioning from difficult but necessary reforms to a phase of consolidation and renewed resilience.
He noted that over the past two and a half years, the federal government had implemented some of the most consequential economic reforms in recent history, emphasizing that these measures were essential to overcome structural weaknesses and restore investor confidence.
“These reforms were neither easy nor painless, but they were unavoidable if our economy was to break free from long-standing structural weaknesses and restore confidence among citizens, investors, and development partners,” he said.
Describing the public hearing as more than a routine legislative exercise, Adeola said it was a critical platform to ensure that the promises of reform translate into measurable and lasting impact.
He commended President Tinubu’s leadership, adding that the 2026 budget, titled “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” reflected a deliberate effort to lock in reform gains and ensure inclusive growth.
According to the senator, key reform areas include exchange rate unification, deregulation of the downstream petroleum sector, tax system overhaul, and public finance restructuring.
He said the benefits of these reforms were already becoming evident, citing that inflation had eased to about 15 per cent, foreign reserves exceeded US$42 billion, the exchange rate had stabilized, and the downstream petroleum sector was fully market-driven.
Adeola also highlighted an extensive infrastructure drive, with over 440 road projects, more than 2,700 km of highways under construction, and major rail projects advancing.
He said the reforms had freed up revenues, resulting in improved Federation Account Allocation Committee distributions to states and local governments, while also supporting infrastructure development across the country.
The senator noted international validation of the reform programme, saying the World Bank had acknowledged that the measures were restoring macroeconomic discipline and fiscal transparency.
On the 2026 budget framework, Adeola said the central theme of the hearing, “From Budget to Impact,” emphasized moving beyond projections to tangible outcomes that improve security, infrastructure, livelihoods, and investor confidence.
He disclosed that the Executive anchored the budget on key macroeconomic assumptions, including an inflation rate of 16.5 per cent, an exchange rate of ₦1,400 to the dollar, crude oil production of 1.84 million barrels per day, and a benchmark oil price of $64.85 per barrel.
Adeola assured that the Senate Committee on Appropriations would rigorously scrutinize these assumptions and undertake sustained oversight to ensure effective implementation.
The aggregate revenue for 2026 is projected at ₦33.19 trillion, while total expenditure stands at ₦58.47 trillion, leaving a deficit of ₦25.27 trillion.
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A breakdown of expenditure shows ₦15.90 trillion allocated to debt servicing, ₦15.25 trillion recurrent non-debt expenditure, and ₦23.21 trillion to capital expenditure, reflecting a strong focus on infrastructure and productivity-enhancing investments.
On sectoral priorities, Adeola said ₦5.41 trillion had been allocated to defence and security, ₦3.56 trillion to infrastructure, ₦3.52 trillion to education, and ₦2.48 trillion to health, stressing that effective implementation would improve security, unlock private investment, and raise the quality of life for Nigerians.
Despite fiscal pressures, he expressed confidence in the Tinubu administration’s ability to address longstanding revenue, debt, and structural challenges.
Adeola added that the 2026 budget was deliberately structured to support Nigerian-owned businesses through the Nigeria First Policy, which prioritizes SMEs and wholly-owned Nigerian companies in public procurement, contract awards, and government-funded projects.