The Federal Government has reduced the 2026 budget of the Federal Ministry of Industry, Trade, and Investment by 22.92 percent, despite increased investment and trade momentum.
The ministry’s total allocation for 2026 is N87.44 billion, down from N110.07 billion in 2025 and N126.57 billion in 2024. This reflects a sustained fiscal tightening drive and a rebalancing of capital priorities.
A breakdown of the 2026 proposal shows that staff costs grew slightly to N26.44 billion from N25.63 billion in 2025, while overhead expenditure increased marginally to N5.60 billion from N5.30 billion the previous year.
Foreign investments into Nigeria increased sharply in the first nine months of 2025, with combined Foreign Portfolio Investment and Foreign Direct Investment reaching nearly $14 billion, exceeding total inflows recorded in all of 2024 and pointing to a strong rebound in capital flows.
Nigeria reported a trade surplus of N12 trillion in the first half of 2025, with non-oil exports increasing by 21% to $12.8 billion.
The Ministry of Industry, Trade, and Investment emphasized Nigeria’s leadership role in the African Continental Free Trade Area, citing its expanding impact in pushing trade expansion and investment flows across the continent.
However, capital investment in the 2026 budget fell sharply, to N55.40 billion from N79.14 billion in 2025.
The drop in capital votes was the majority of the entire budget cut, indicating a tighter funding environment for trade infrastructure, industrial parks, and export support programs.
Key ministerial agencies also experienced significant reductions. The Oil and Gas Free Zones Authority of Nigeria (OGFZA) received N13.29 billion in 2026, down from N18.98 billion in 2025.
Similarly, the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) headquarters’ budget was reduced to N28.59 billion from N40.13 billion the previous year.
