Wait, did you hear that sound?

That’s the Federal Government (FG) opening their 2026 piggy bank and realizing they need to go on a serious 'revenue-chasing' spree. According to the 2026 Appropriation Bill, the FG is eyeing a massive ₦33.39 trillion in revenue. Sounds like a lot of chicken, right? Well, hold your appetite, because the Debt Man is already standing at the door with a very long receipt.

Here’s the breakdown of the 'Big 2026 Money Move' in simple English:

Where is the ₦33.39 Trillion coming from?

Think of the government like a big family business. They are expecting money from different 'side hustles':

• The Big Pool (Federation Account): This is the main Oga. They expect about ₦20.20 trillion from the general national cake.

• The "Small Change" (VAT & Transfers): About ₦1.29 trillion from VAT (that extra 7.5% you pay on your fancy shopping runs) and ₦63.85 billion from those ₦50 charges you see on your bank alerts (Electronic Money Transfer Levy).

• The "Independent Wealth": The government’s own agencies (MDAs) are expected to remit about ₦4.31 trillion. Basically, the FG is telling them: "No more stories, bring the profit!"

• Dividends & Grants: Even NLNG is expected to drop ₦135 billion in the pot, while some foreign friends are expected to dash us ₦1.37 trillion in aid.

The heartbreak: the debt service 'tax'

Now, here is where it gets interesting (or painful, depending on how you look at it). Out of that ₦33.39 trillion revenue, the government has already set aside ₦15.91 trillion just to pay back money we borrowed.

Meaning, for every ₦1 the government earns, almost 50 kobo is going straight to interest and loan repayments.

Local vs. foreign debt (Who’s the bigger bully?)

You might think our biggest problem is the money we owe 'abroad' (dollars), but the real 'Area Father' is actually our Domestic Debt.

Nigeria has a domestic (home-grown) debt of ₦10.16 trillion; this is money owed to local banks, pension funds, and the Central Bank (the famous 'Ways and Means').

Our foreign (Abroad) Debt is ₦5.36 trillion. Even though this is in Dollars/Euros, it’s currently less than the local debt pressure.

Why this news matters

It’s a classic 'Good News, Bad News' situation. The 'Good News' is that the government is getting better at collecting money (revenue is projected to be much higher). The 'Bad News' is that our past 'borrow-borrow' lifestyle has finally caught up with us.

When almost half of your salary goes to the 'Lapo' or 'Palmpay' you borrowed from last year, you have less money to buy food (infrastructure), pay for school fees (education), or fix the house (healthcare).

Key take-away

The 2026 budget is basically a 'debt-clearing budget.' The government is working hard to earn more so they can stay afloat while paying off heavy loans. For the average Nigerian, this means the government will be very 'strict' with taxes and levies to meet that ₦33 trillion target.

So, we are officially in the 'work and pay' era; working to earn revenue and paying off loans to stay out of debt!

Source: The Nation Newspaper