The Federal Government of Nigeria has allocated ₦2.3 billion in the 2026 national budget to cover benefits and entitlements for former presidents, heads of state, and their deputies. This allocation is contained in the latest Appropriation Bill, and it reflects the statutory obligations of the government to its retired top political leaders under existing laws.
Under the line item labelled “Entitlements of former Presidents/Heads of State and Vice Presidents/Chief of General Staff,” the specified amount is meant to meet pension costs, allowances, and other benefits owed to these former leaders.
The spending will apply to both civilian and military leaders who once held Nigeria’s highest offices. Some of the beneficiaries identified include former presidents such as Olusegun Obasanjo and Goodluck Jonathan, as well as past military heads of state including General Ibrahim Babangida, General Yakubu Gowon, and General Abdulsalami Abubakar.
Former vice presidents and equivalent military positions are also covered by this allocation. Notable names in this category include Atiku Abubakar, who served as Vice President from 1999 to 2007; Namadi Sambo, Vice President between 2010 and 2015; and Yemi Osinbajo, who held the office from 2015 to 2023. In addition, Okoh Ebitu Ukiwe, a de facto Vice President in the mid‑1980s during the Babangida military regime, is included among those entitled to these benefits.
Beyond this ₦2.3 billion provision, the 2026 budget also makes room for other significant payouts to senior retired public officials. For example, nearly ₦24.79 billion is set aside for benefits due to former Heads of Service and Permanent Secretaries. A further ₦1 billion is allocated for severance benefits for retired heads of government agencies and parastatals.
These expenditures fall under the recurrent expenditures of the federal budget, which covers costs that recur annually, such as salaries, pensions, and statutory entitlements. The government insists these are obligatory payments, backed by law and long‑standing practice.
What This Means
Allocations for former leaders have long been part of Nigeria’s budgetary framework, and the continuation of such provisions in the 2026 Appropriation underscores a broader debate about governance costs amid tight fiscal conditions. Nigeria’s government revenues are under strain, and spending choices are closely watched by citizens, economists, and policymakers alike.
In the context of the wider 2026 financial plan, the government has projected total revenue of about ₦34.33 trillion, but total expenditure is expected to reach **₦58.18 trillion, resulting in a substantial budget deficit. This means the country will be spending significantly more than it earns in revenue.
Furthermore, debt servicing remains a heavy burden on federal finances. Recent data shows that Nigeria spent nearly 72% of its revenue on servicing both domestic and foreign debts in part of 2025, squeezing the fiscal space for other priorities such as education, health, and infrastructure.
From an economic perspective, allocating funds to entitlements for former leaders may spark debate on fiscal priorities. With essential public services needing increased funding and the economy grappling with inflation and revenue challenges, every line item in the budget is being scrutinised for value and impact, especially when recurrent expenditures consume a large share of limited revenue.
As Nigeria works to improve revenue generation, manage debt, and direct more resources toward economic growth and social development, allocations like this raise important questions about balancing statutory obligations with pressing national needs.
