The Federal Government has proposed at least ₦3.50 trillion worth of new projects in the 2026 budget, defying its own directive that ministries, departments and agencies (MDAs) should roll over 70 per cent of their 2025 capital allocations and avoid introducing fresh capital items.
An analysis of the 2026 Appropriation Bill shows that while MDAs listed ₦844.49bn in new project entries, the figure rises sharply to ₦3.50tn when Service-Wide Votes (SWVs) are included. Against the total proposed ₦23.21tn capital budget, the fresh projects account for 15.09 per cent of planned capital spending for 2026.
The bulk of these new projects sits outside the normal ministerial framework. Service-Wide Votes alone account for ₦2.66tn, reflecting a heavy concentration of major financial, security and liability-related provisions under centrally controlled budget lines.
This development directly contradicts the 2026 Abridged Budget Call Circular issued in December 2025 by the Federal Ministry of Budget and Economic Planning, which instructed MDAs to carry forward 70 per cent of their 2025 capital budgets and to focus on completing ongoing projects.
The circular warned MDAs to avoid fresh capital projects and emphasised that spending must align with the government’s priority areas, including national security, economic growth, education, health, agriculture, infrastructure, power and energy, and social protection.
Yet, a review of the 2026 budget shows that at least 82 MDAs have introduced new capital or programme items, amounting to more than 400 fresh project lines across the public sector. These range from multi-billion-naira infrastructure and health investments to small-scale constituency-type projects such as boreholes, training schemes and equipment supply.
Service-Wide Votes dominate
The largest single new item in the budget is the ₦1.70tn provision for outstanding contractors’ liabilities from 2024, which alone accounts for about 48.55 per cent of all new projects.
Other major Service-Wide Vote entries include:
- ₦300bn for three financing vehicles — the Nigeria Development Finance Corporation, the Economic Transformation Finance Programme, and the Nigeria Growth Investment Fund.
- ₦110.31bn for the Nigerian Air Force to meet outstanding obligations on six T-129 ATAK helicopters and three Mi-35 helicopters.
- ₦283.85bn for presidential air fleet logistics and management, including the operation of the National Forest Guard.
- ₦30bn for DSS special operations and ₦20bn for the capitalisation of INFRACO.
The budget also provides ₦41.12bn as recurrent take-off grants for new MDAs and ₦19.50bn as capital take-off grants for 12 newly created agencies, mostly in the health and education sectors.
Top MDAs with new projects
At the MDA level, the Budget Office of the Federation leads with a ₦375bn new project — a multilateral or bilateral tied loan for the Power Sector Recovery Operation (additional financing). This single item accounts for 44.41 per cent of all MDA-level new projects.
The Federal Ministry of Transport (Headquarters) follows with ₦210.53bn, including:
- ₦68.50bn for consultancy services for the Lekki–Ijebu-Ode–Ore–Kajola rail line and coastal railway (Badagry–Apapa–Tin Can).
- ₦142.03bn for the construction of six bus terminals and transport facilities across the six geopolitical zones.
The National Library of Nigeria has ₦24bn for structural renovation and space upgrades nationwide, while the National Blood Service Commission received ₦15bn for a national blood service centre in Abuja and the rehabilitation of its state offices.
The Sokoto Rima River Basin Development Authority has ₦9.14bn in new projects, including solar mini-grids, rural roads, irrigation pumps, water supply systems and youth empowerment schemes.
Vehicles, buildings and renovations
Beyond flagship projects, the budget also shows ₦5.85bn for vehicle purchases, ₦2.93bn for furnishing and office equipment, ₦29.88bn for renovations and refurbishments, and ₦25.29bn for residential and staff accommodation — including ₦16.48bn for Defence Headquarters facilities and ₦7bn for DSS housing.
Experts fault fiscal discipline
This is not the first time such restrictions have been ignored. Similar “no-new-projects” directives were issued ahead of the 2025 budget, yet MDAs again inserted new projects.
Reacting to the pattern, the President of the Nigerian Economic Society, Prof. Adeola Adenikinju, warned that late budget submissions deny the National Assembly enough time for proper scrutiny, creating what he described as a disorganised fiscal environment.
A development economist and CEO of CSA Advisory, Dr Aliyu Ilias, said Nigeria’s budget process suffers from chronic fiscal discipline failures, accusing both the executive and the National Assembly of tolerating inefficiencies.
“The National Assembly is also failing in its oversight responsibility to ensure that these things do not fly,” he said.
With ₦3.5tn in fresh projects now embedded in the 2026 budget, analysts warn that the government’s stated commitment to completing existing projects and controlling spending risks being undermined once again.
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