Uganda to channel UGX1.4 trillion oil revenues into 2026/27 budget

The government has projected that Uganda will earn more than UGX2.2 trillion in oil revenues in the 2026/27 financial year, marking a significant milestone as the country prepares for its first commercial oil production.

The disclosure was made by Henry Musasizi, the Minister of State for Finance, while presenting the Ministry’s 2026/27 Ministerial Policy Statement before Parliament’s Committee on Finance.

Musasizi said a substantial portion of the anticipated oil revenues, about UGX1.4 trillion—has already been earmarked to support government expenditure in the upcoming national budget.

“In preparation for the first oil, overall progress on development of the East African Crude Oil Pipeline is at 80%. Five engineering studies are being conducted for the oil refinery project,” he told the committee.

The East African Crude Oil Pipeline is a critical component of Uganda’s oil export infrastructure, designed to transport crude oil from the Albertine region to the Tanzanian port of Tanga. Its progress signals growing readiness for the country’s entry into the global oil market.

Government is also advancing plans for a domestic refinery, with multiple engineering studies underway to guide the project’s development and ensure value addition within the country.

The expected oil revenues are seen as a major boost to Uganda’s fiscal position, offering a new stream of income to finance public spending, infrastructure development, and reduce reliance on borrowing.

However, analysts have previously cautioned that effective management of oil revenues will be crucial to avoid fiscal risks and ensure the funds translate into broad-based economic growth.

Uganda’s first oil production has long been anticipated, and the 2026/27 financial year could mark a turning point in the country’s economic trajectory as petroleum revenues begin to flow into the national treasury.