Senate Approves N2.285 Trillion FCT Budget, Queries Missing Revenue Plan
• Lawmakers raise concern over funding sources after N84bn increase
• Akpabio orders submission of FCT revenue profile despite approval
Sunday Aborisade in Abuja
Senate on Thursday approved a N2.285 trillion budget for the Federal Capital Territory Administration (FCTA) for the 2026 fiscal year, amid concerns by lawmakers over the absence of details on how the spending plan would be financed.
The upper chamber increased the proposed budget by N84 billion, from the N2.201 trillion earlier submitted by President Bola Tinubu in March, before passing it through a voice vote at the Committee of Supply.
The approved appropriation will cover expenditure for the FCT from January 1 to December 31, 2026.
Despite broad support for the budget, some senators faulted the failure of FCTA to provide a comprehensive revenue profile to accompany the spending proposal.
They warned that the omission could expose the territory to unregulated borrowing and rising debt obligations.
Senate President Godswill Akpabio announced the passage of the budget after a majority of lawmakers endorsed it during plenary.
The approval followed consideration of a report presented by Chairman of Senate Committee on the FCT, Senator Austin Akobondu, representing Abia Central.
Akobondu said the committee held extensive engagements with Minister of the Federal Capital Territory (FCT), Nyesom Wike, and other top officials of the administration before arriving at the final figures.
He disclosed that the approved sum comprised N165.775 billion for personnel costs, N378.231 billion for overhead expenditure, and N1.741 trillion for capital projects.
According to him, capital expenditure accounts for 76.19 per cent of the total budget, overhead costs represent 16.55 per cent, while personnel costs make up 7.25 per cent.
The debate, however, shifted to concerns over the absence of projected revenue sources in the appropriation bill.
Traditionally, budgets presented by the executive arm of government contain details of expected revenue streams, including internally generated revenue, grants, loans, and other financing arrangements.
The omission became more significant against the backdrop of the federal government’s growing reliance on borrowing to fund public expenditure and Nigeria’s increasing debt burden.
FCTA currently operates outside the Treasury Single Account following the decision of the Tinubu administration to remove the territory from the TSA framework, thereby granting the FCT administration direct control over its funds.
Senator Adetokunbo Abiru, representing Lagos East, who is also Chairman of Senate Committee on Banking, Insurance and Other Financial Institutions, questioned the absence of the revenue profile in the budget document.
Although, he later commended Wike for ongoing infrastructural projects across Abuja, Abiru maintained that lawmakers needed to know the exact funding sources backing the budget.
Similarly, Chairman of Senate Committee on Finance, Senator Sani Musa, representing Niger East, warned that the appropriation could not be considered fully comprehensive without clear disclosure of anticipated revenue inflows.
Musa stated that approving expenditure without a financing framework could create room for future borrowing or overdrafts without adequate legislative oversight.
Responding to the concerns, Akpabio agreed that the senate should be furnished with the FCT’s revenue profile and directed the committee to ensure that the document was submitted, notwithstanding the passage of the budget.
Several senators, however, applauded the FCT minister for what they described as impressive infrastructural transformation in Abuja and satellite towns.
Deputy Senate President Barau Jibrin said the scale of capital allocation in the budget reflected Wike’s commitment to accelerating development in the nation’s capital.
Senator Abdul Ningi, representing Bauchi Central, described the budget as balanced and capable of sustaining ongoing projects in the territory.
Senate Minority Leader Abba Moro expressed confidence that the approved appropriation would further boost infrastructure delivery and improve public services in the FCT.