NISER Policy Brief: Strengthening Human Capital Financing for Productivity and Inclusive Growth: Policy Implications of Nigeria's 2026 Federal Budget

The 2026 federal budget allocates 3.52 trillion naira to education (6.1%) and 2.48 trillion to health (4.2%), reflecting nominal increases but remaining well below international benchmarks. Education and health allocations remain significantly low, below UNESCO’s recommended 15-20% for education and the Abuja Declaration target of 15% for health spending.
While budget structures remain largely input-oriented, without a transition towards results-based financing and equitable targeting, increased spending may not translate into productivity gains, improved health outcomes, or demographic dividends.
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