The proposed 2026 federal budget includes at least N3.5 trillion in new projects—yet this directly contradicts official spending guidelines. According to the analysis, the figure defies a clear directive from the Federal Ministry of Budget and Economic Planning.
Earlier, in December 2025, the ministry issued a circular instructing all Ministries, Departments, and Agencies (MDAs) to carry over 70% of their 2025 capital allocations into 2026. The aim was simple: prioritize completing ongoing projects and curb spending amid weak revenues.
Nevertheless, the 2026 Appropriation Bill reveals N844.49 billion in fresh project lines across 82 MDAs. Moreover, when you include Service Wide Votes, the total soars to N3.5 trillion—representing 15.09% of the entire N23.21 trillion capital budget.
Notably, most new spending appears outside regular ministries. Service Wide Votes alone account for N2.66 trillion. For instance, N1.7 trillion goes to settle 2024 contractor liabilities—nearly half of all new project funds.
In addition, other major allocations include:
- N300 billion split among three development finance initiatives
- N283.85 billion for presidential air fleet logistics and the National Forest Guard
- N110.31 billion for Nigerian Air Force helicopter obligations
- N30 billion for DSS special operations
- N41.12 billion in take-off grants for newly created MDAs
At the MDA level, the Budget Office of the Federation leads with N375 billion for power sector recovery financing. This single item makes up 44% of all MDA-level new projects. Meanwhile, the Federal Ministry of Transport follows with N210.53 billion for railways and bus terminals across the six geopolitical zones.
Other significant entries include N24 billion to upgrade the National Library nationwide and N15 billion to build a national blood reserve in Abuja. Furthermore, smaller but widespread spending covers vehicles (N5.85 billion), office equipment (N2.93 billion), renovations (N29.88 billion), and staff housing (N25.29 billion).
Importantly, this isn’t the first time MDAs have ignored such rules. Back in 2024, the government banned new projects in the 2025 budget unless agencies proved they could finish existing ones. Yet again, similar violations occurred.
Experts warn of systemic oversight failure. Professor Adeola Adenikinju, President of the Nigerian Economic Society, blames late budget submissions. “The rush doesn’t allow proper analysis,” he said. “As a result, it creates a disorganised fiscal environment.”
Dr. Aliyu Ilias, a development economist, calls it deliberate fiscal indiscipline. “This is becoming a repeated error,” he noted. “Both the executive and the National Assembly are failing in their duties.”
Ultimately, the surge in 2026 Nigeria budget new projects raises urgent questions. Can Nigeria complete old projects if it keeps launching new ones? And more critically, who holds MDAs accountable when they bypass official guidelines?
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