Nigeria’s business landscape is experiencing significant shifts, with the Federal Government adjusting fiscal policies, major oil companies planning large-scale investments, and the private sector reporting mixed financial results. From escalating borrowing plans and power sector bailouts to deep-water oil development and trade disputes, the latest developments reveal both opportunities and challenges in the economy. This roundup highlights the key stories shaping Nigeria’s financial and industrial environment.
FG Increases 2026 Borrowing Plan by N11 Trillion
The Federal Government has revised its 2026 borrowing plan upward to N29.2 trillion, reflecting an increase of N11.31 trillion from the previous projection of N17.89 trillion.
The revision is part of the expanded 2026 Appropriation Bill, approved by the National Assembly, which estimates total spending at N68.32 trillion, with aggregate revenue projected at N36.87 trillion, leaving a deficit of N31.46 trillion.
Debt financing remains the primary source of the deficit, with asset sales and privatisation contributing a modest N189.16 billion and multilateral or bilateral project-tied loans expected to provide N2.05 trillion. The Federal Government anticipates N25.92 trillion in gross federation revenues, N4.31 trillion from independent sources, and N5.85 trillion from government-owned enterprises. Aid, grants, and special funds are projected to contribute N1.67 trillion.
The increase in borrowing comes alongside rising expenditure, especially for debt service and recurrent spending. Domestic debt service is projected at N10.16 trillion, while foreign debt service stands at N5.36 trillion. Capital expenditure, primarily allocated to infrastructure and development, is estimated at N32.29 trillion, while statutory transfers account for N4.8 trillion.
President Bola Tinubu had earlier requested a N9.09 trillion budget increase, to be financed through higher crude oil revenues and fresh loans. Lawmakers also projected increased revenue from the telecommunications sector, estimating contributions of N724 billion from MTN Nigeria and N150 billion from Airtel Nigeria, totalling N874 billion. Despite these measures, the government approved additional external borrowing of N6.163 trillion.
Economic experts, including former presidential candidate Atiku Abubakar and policy analysts such as Dr Muda Yusuf, have expressed concerns about Nigeria’s rising debt profile, warning that reckless borrowing could jeopardize macroeconomic stability and saddle future generations with unsustainable obligations.
ExxonMobil Poised for $10 Billion Deep-Water Investments
American oil giant ExxonMobil plans to declare readiness for Final Investment Decisions (FIDs) on several major deep-water projects in Nigeria, cumulatively valued at around $10 billion. The investment will begin with an infill drilling campaign at the Usan deep-water field, valued at over $1 billion, with ExxonMobil having committed 30 percent upfront.
Chairman and Managing Director of ExxonMobil Nigeria, Jagir Baxi, revealed the plan during a Lagos interview marking the 20th anniversary of the Erha oil field operations by Esso Exploration and Production Nigeria Limited (EEPNL). ExxonMobil intends to grow Nigeria production from 100,000 barrels per day (bpd) to 250,000 bpd over the next five years.
A central component of the plan is the development of the Owowo deep-water field, holding between 500 million and 1 billion barrels of oil reserves. ExxonMobil operates the asset with a 27 percent stake; partners include Chevron Nigeria Limited (27%), TotalEnergies E&P Nigeria Limited (18%), Nexen Petroleum Deepwater Nigeria Limited (18%), and NNPC Limited (10%).
Baxi explained that the Usan infill drilling will leverage the existing FPSO infrastructure, requiring new wells, subsea connections, and supporting facilities. The campaign aims to unlock immediate production within months. Meanwhile, the Owowo project is expected to cost between $7 billion and $8 billion, featuring 20–40 wells and extensive subsea infrastructure.
In addition to oil, the projects will support gas production of around 100 million standard cubic feet per day, underpinning ExxonMobil’s ambition to deliver 250,000 bpd of oil and significant gas output by 2031. Baxi praised the Nigerian government’s fiscal incentives and regulatory framework, highlighting Presidential Executive Directives 40, 41, and 42 for national content and contracting efficiencies as critical enablers of investment.
NSIA Reports 91% Drop in Profit
The Nigeria Sovereign Investment Authority (NSIA) posted a sharp decline in profit for the 2025 financial year, recording $107 million, down from $1.24 billion in 2024—a 91 percent drop. The reduction was largely due to the disappearance of extraordinary foreign exchange gains that had previously boosted performance.
The Authority’s 2025 report highlighted that foreign exchange-linked collateralised securities, which contributed $407.9 million in 2024, yielded only $3.1 million in 2025. Equity-method investments also recorded a downturn, shifting from a $28.4 million gain to a $7.2 million loss, while revenue from agricultural infrastructure operations fell to zero, compared with $76.42 million in 2024.
Despite the decline, core operations showed improvement, with total interest income rising to $197.3 million and core operating income increasing by 6 percent to $349.07 million. Total assets expanded to $3.42 billion, supported by higher government contributions, now $2.06 billion. Retained earnings stand at $5 billion, indicating a continued focus on long-term investment stability.
Tinubu Approves N3.3 Trillion Power Sector Bailout
President Bola Tinubu has approved a N3.3 trillion payment plan to resolve legacy debts in the power sector, accumulated over a decade under the Presidential Power Sector Financial Reforms Programme. Implementation has begun, with 15 power plants signing settlement agreements totaling N2.3 trillion, and N223 billion already disbursed.
The bailout aims to stabilize power generation, improve electricity reliability, and restore investor confidence. According to the Special Adviser on Energy, Olu Arowolo-Verheijen, the plan will ensure gas suppliers are paid, power plants remain operational, and tariffs are linked to service quality.
Dr Joy Ogaji, CEO of the Association of Power Generation Companies, noted that the crisis stemmed from unpaid obligations by the Nigerian Bulk Electricity Trading Plc, with total debt owed to generators reaching N6.8 trillion by February 2026. Settling the debts is expected to prevent further disruption of the national grid and support consistent power supply.
Federal Government Detects 45,000 Ghost Workers via BVN Integration
Former Finance Minister Kemi Adeosun revealed that the integration of the Bank Verification Number (BVN) into the federal payroll system uncovered 45,000 ghost workers, highlighting inefficiencies in government expenditure management.
The intervention bypassed stalled biometric initiatives and used existing BVN data to identify duplicate or fraudulent payroll entries, which included cases of deceased or transferred personnel still receiving salaries. Adeosun emphasised that the reform added human accountability, requiring Permanent Secretaries to sign off on payrolls, ensuring systemic verification.
The initiative underscores the potential of technology-driven solutions, including AI and data analytics, to improve governance and fiscal accountability. It also demonstrates that leadership and regulatory oversight are critical to sustaining reforms in public sector operations.
Nigeria-Ghana Onion Trade Dispute Leads to Suspension
Tensions between Nigerian and Ghanaian onion traders have resulted in the suspension of cross-border trade. The National Onion Producers, Processors and Marketers Association of Nigeria (NOPPMAN) cited harassment and the alleged seizure of Nigerian trucks at Accra’s Kotoku Market as reasons for halting shipments.
The dispute has disrupted regional commerce, raising concerns about food supply and livelihoods for farmers, merchants, and retailers. NOPPMAN called on both governments and regional bodies under ECOWAS to intervene and ensure safe trade practices. The association also clarified that reports of attacks on Ghanaian trucks in Nigeria were false, with the vehicles affected due to ongoing trade tensions rather than security incidents.
Nigeria remains a leading producer of onions in West Africa, supplying neighboring countries and supporting extensive agricultural value chains. Experts warn that such disputes, often stemming from competition and pricing pressures, can undermine regional economic integration.
SFS Real Estate Reports 762% Profit Growth
SFS Real Estate Investment Trust (REIT) posted a remarkable 762% increase in profit for the 2025 financial year, totaling N4.1 billion, reflecting strong investor confidence in the real estate sector. The performance highlights the potential of REITs as a vehicle for capital appreciation and income generation.
As a close-ended investment scheme, the SFS REIT pools resources from investors to fund income-generating properties, providing a platform for broad participation in Nigeria’s growing real estate market. The dramatic profit surge indicates both effective portfolio management and market recovery, signaling increased attractiveness for institutional and individual investors alike.
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