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This development contradicts earlier budget preparation guidelines which instructed MDAs to roll over 70 per cent of their 2025 capital allocations into 2026 and refrain from introducing new projects.
New Projects Take 15% of Capital Budget
Data from the 2026 Appropriation Bill show that MDAs alone introduced N844.49bn in new project lines. When Service-Wide Votes (SWVs) are included, the figure rises sharply to N3.50tn.
Against the proposed N23.21tn capital expenditure for 2026, new projects account for 15.09 per cent of total capital spending.
Notably, Service-Wide Votes dominate the new portfolio, accounting for N2.66tn, highlighting a heavy concentration of allocations outside traditional ministerial budgets.
FG Directive Ignored
In December 2025, The PUNCH reported that the Federal Government directed MDAs to carry over most of their 2025 capital budget into 2026 to prioritise completion of ongoing projects and curb spending pressures amid weak revenues.
The instruction was contained in the 2026 Abridged Budget Call Circular issued by the Ministry of Budget and Economic Planning.
“MDAs are to upload 70 per cent of their 2025 FGN Budget to continue in FY2026… aligned with national priorities including security, the economy, education, health, agriculture, infrastructure, power, and social safety nets,” the circular stated.
MDAs were expressly warned against introducing fresh projects, with spending to be strictly scrutinised to ensure value for money.
82 MDAs Introduce Over 400 New Projects
Contrary to the directive, The PUNCH observed that no fewer than 82 MDAs included at least one new capital or programme item in the 2026 budget.
In total, over 400 new project lines were identified, ranging from multibillion-naira infrastructure and health investments to smaller constituency-level projects such as boreholes, training schemes and equipment supplies.
A review of the Service-Wide Votes section alone shows 18 new projects, largely tied to financing programmes, security operations, liabilities and central government initiatives.
Contractors’ Liabilities Dominate SWVs
The single largest new project line is the provision of N1.70tn for outstanding contractors’ liabilities from 2024. This alone accounts for 48.55 per cent of the total N3.50tn new project allocation.
Other major SWV entries include:
- N300bn combined for three funding programmes:
- Nigeria Development Finance Corporation
- Economic Transformation Finance Programme
- Nigeria Growth Investment Fund
- N283.85bn for presidential air fleet logistics and National Forest Guard operations
- N110.31bn for Nigerian Air Force helicopter obligations
- N30bn for DSS special operations
- N20bn capitalisation for INFRACO
The budget also provides N41.12bn as recurrent take-off grants for new MDAs and N19.50bn as capital take-off grants for 12 newly created MDAs, mostly in health and education.
Top MDAs with New Project Allocations
Among MDAs, the five agencies with the highest value of new projects are:
1. Budget Office of the Federation – N375bn
This includes a multilateral or bilateral tied loan for Power Sector Recovery Operations. The allocation represents:
- 44.41% of total MDA-level new projects
- 10.71% of total new projects including SWVs
2. Ministry of Transport (HQ) – N210.53bn
- N68.50bn for rail consultancy projects
- N142.03bn for construction of six national bus terminals
3. National Library of Nigeria – N24bn
For structural renovation and space upgrades across all six geopolitical zones.
4. National Blood Service Commission – N15bn
Includes:
- N10bn for a national blood service centre in Abuja
- N5bn for rehabilitation of state offices
5. Sokoto Rima River Basin Development Authority – N9.14bn
Covering solar mini-grids, rural roads, water supply systems, irrigation equipment and youth empowerment materials.
Vehicles, Furnishing and Housing Projects
Further analysis shows:
- N5.85bn allocated for vehicle purchases
- N2.93bn for furnishing and office equipment
- N29.88bn for renovation and refurbishment
- N25.29bn for residential and staff accommodation
A Repeated Pattern of Budget Breaches
This is not the first time MDAs have ignored federal budget restrictions. In the 2024 Budget Call Circular, the government barred new projects from the 2025 capital budget unless tied to completion of ongoing initiatives.
Yet, similar violations were observed.
Experts Warn of Weak Fiscal Discipline
The President of the Nigerian Economic Society, Prof. Adeola Adenikinju, blamed late budget presentations for weak legislative scrutiny.
“The rush does not allow for proper analysis. It creates a disorganised fiscal environment,” he said.
Development economist and CSA Advisory CEO, Dr Aliyu Ilias, was more blunt.
“The Federal Government has fiscal discipline problems… and the National Assembly is also failing in its oversight responsibility,” he said.
Bottom Line
Despite repeated policy directives to rein in spending and focus on completing existing projects, the 2026 budget shows that MDAs continue to introduce new capital projects on a massive scale — raising fresh concerns over fiscal discipline, oversight, and budget credibility.
