₦3.5 Trillion in New Projects Sneak into 2026 Budget Despite Federal Government Directive

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An analysis of the proposed 2026 budget by Punch reveals that at least ₦3.50 trillion in fresh projects have been introduced, even though the Federal Government explicitly instructed Ministries, Departments, and Agencies (MDAs) to roll over 70 percent of their 2025 capital allocations and avoid initiating new projects.

Data from the 2026 Appropriation Bill show that new project allocations within MDAs alone total ₦844.49 billion. When Service-Wide Votes are added, the total rises sharply to ₦3.50 trillion.

Compared with the proposed 2026 capital expenditure of ₦23.21 trillion, these new projects account for roughly 15.09 percent of the total capital budget.

In December 2025, the Federal Government directed MDAs to carry over 70 percent of their 2025 capital budgets into the 2026 fiscal year to prioritize the completion of ongoing projects amid weaker-than-expected revenue performance.

This instruction was detailed in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning and sent to ministers, service chiefs, and heads of agencies.

The circular specified: “MDAs are to upload 70 percent of their 2025 FGN Budget to continue in FY2026, rather than seeking fresh projects,” adding that all spending would be scrutinized to ensure value for money.

Despite this directive, Punch found that at least 82 MDAs included one or more new capital or program items in the 2026 budget.

Across these MDAs, over 400 new project lines were introduced, ranging from multibillion-naira infrastructure and health initiatives to smaller constituency-based interventions such as boreholes, vocational training programs, and equipment procurement.

Service-Wide Votes Dominate New Allocations

A breakdown of the new projects shows that Service-Wide Votes account for ₦2.66 trillion of the ₦3.50 trillion, meaning the bulk of new allocations fall outside traditional ministerial capital lines.

The largest single item is ₦1.70 trillion earmarked for outstanding contractors’ liabilities from 2024, representing roughly 48.55 percent of total new projects, including Service-Wide Votes.

Other notable Service-Wide Vote allocations include three separate N100 billion entries for the Nigeria Development Finance Corporation, the Economic Transformation Finance Programme, and the Nigeria Growth Investment Fund, totaling N300 billion.

Additional provisions include ₦20 billion for INFRACO capitalisation, N30 billion for a DSS special operations fund, and ₦110.31 billion for the Nigerian Air Force to settle obligations on T-129 ATAK and Mi-35 helicopters.

The budget also designates ₦283.85 billion for presidential air fleet operations and management, which covers the National Forest Guard.

Top MDAs with the Largest New Project Allocations

Among MDAs, the Budget Office of the Federation leads with ₦375 billion in new projects, allocated to a multilateral or bilateral tied loan for the Power Sector Recovery Operation. This single item represents 44.41 percent of MDA-level new projects.

The Federal Ministry of Transport follows with ₦210.53 billion, covering consultancy services for rail projects and the construction of six national bus terminals across the geopolitical zones.

Other allocations include the National Library of Nigeria with ₦24 billion for structural upgrades nationwide, and the National Blood Service Commission with ₦15 billion for a national blood service center and state office renovations.

The Sokoto Rima River Basin Development Authority received ₦9.14 billion for solar mini-grids, rural road construction, irrigation pumps, and youth empowerment initiatives.

Further analysis reveals ₦5.85 billion earmarked for vehicle purchases across MDAs, with key allocations to FUT Iyin Ekiti, FUADSI, and Jos University Teaching Hospital.

Furnishing and office equipment projects total ₦2.93 billion, while renovations and refurbishments account for ₦29.88 billion, largely driven by the National Library project.

Residential and staff accommodation projects stand at ₦25.29 billion, including ₦16.48 billion for Defence Headquarters facilities and ₦7 billion for DSS housing.

Recurring Challenge of New Project Introductions

Punch notes that this is not the first time the government has struggled to restrict new projects. In December 2024, MDAs were similarly directed to exclude new projects from the 2025 budget unless directly linked to the completion of ongoing initiatives.

The 2024 Budget Call Circular emphasized: “The thrust of the FGN’s capital expenditure programme in 2025 will be the completion of as many cardinal ongoing projects as possible, rather than starting new projects. MDAs are advised that new projects will not be admitted into the capital budget unless adequate provision has been made for the completion of all ongoing work programmes.”

MDAs have also been instructed to carefully justify their proposals, ensuring alignment with national priorities such as security, economy, education, health, agriculture, infrastructure, power and energy, and social safety nets, with special attention to youth and women empowerment.

However, reports indicate that MDAs often disregard this directive, with little enforcement from the Budget Office of the Federation or the National Assembly.

Expert Opinions on Budget Discipline

The National President of the Nigerian Economic Society, Professor Adeola Adenikinju, argued that the late presentation of the 2026 budget prevents proper legislative scrutiny.

“The 2026 budget should have been submitted earlier to allow consultation and make our fiscal system predictable,” he said, warning that rushed approvals hinder proper evaluation and limit ministries’ ability to defend their proposals, creating a disorganized fiscal environment.

Similarly, development economist Dr. Aliyu Ilias, CEO of CSA Advisory, told Punch that the Federal Government has significant issues with fiscal discipline.

“Government performance on fiscal and budget discipline has not been satisfactory,” he said, suggesting that the lapses may be deliberate. “I am confident this is intentional, as these errors seem systemic.”

Dr. Ilias further criticized the National Assembly for failing in its oversight responsibilities, saying: “The legislature is tolerating inefficiencies. They are responsible for ensuring these lapses do not occur, yet they allow them to happen.”