January 22, 2026 — The Federal Government has proposed a significant 22.92% reduction in the 2026 budget for the Federal Ministry of Industry, Trade and Investment, despite a reported surge in foreign investment and a massive trade surplus.
According to details from the 2026 Appropriation Bill, the ministry’s total allocation has been set at ₦87.44 billion. This represents a steady decline from ₦110.07 billion in 2025 and ₦126.57 billion in 2024, signaling a continued tightening of fiscal policy.
The Numbers: Capital vs. Recurrent
The bulk of the cuts fell on capital expenditure, while administrative costs saw a slight uptick.
Capital Expenditure: Plummeted to ₦55.40 billion, down from ₦79.14 billion in 2025.
Personnel Costs: Rose marginally to ₦26.44 billion from ₦25.63 billion.
Overhead Costs: Increased slightly to ₦5.60 billion from ₦5.30 billion.
This contraction in capital funding suggests a leaner environment for trade infrastructure, industrial parks, and export support programs, even as the government targets a $1 trillion economy by 2030.
Economic Gains vs. Budget Realignment
The budget cuts arrive at a time of apparent economic momentum for the ministry. Data suggests that the tightening is part of a “rebalancing” strategy as the government shifts focus toward ward-based development and private-sector-led growth.
Key Economic Highlights (2025):
Investment Inflow: Foreign Portfolio and Direct Investment hit nearly $14 billion in the first nine months of 2025.
Trade Surplus: Nigeria recorded a ₦12 trillion trade surplus in the first half of 2025.
Non-Oil Exports: Growth reached $12.8 billion, a 21% increase.
Agency Impact
The downsizing also hit key agencies under the ministry’s supervision. The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) saw its budget cut from ₦40.13 billion to ₦28.59 billion. This comes as the agency aims to register 250,000 new businesses in 2026.
Similarly, the Oil and Gas Free Zones Authority (OGFZA) received ₦13.29 billion, a drop from the ₦18.98 billion allocated in the previous year.
A “Reset” Year
Government officials, including Minister of Budget and Economic Planning Abubakar Bagudu, have framed the 2026 fiscal year as a “reset.” The administration is moving to align the fiscal year strictly with the calendar year (January–December) and has directed MDAs to roll over 70% of unfinished 2025 capital projects rather than starting new ones.
Analysts suggest that while the cuts to the Trade Ministry appear drastic, they reflect a broader federal strategy to reduce reliance on debt and shift the burden of industrial development toward private capital.
