An analysis of the proposed 2026 Federal Government budget has revealed that Ministries, Departments, and Agencies have introduced new projects valued at approximately N3.5tn, despite official directives to limit fresh capital spending.
Budget preparation guidelines issued by the Federal Ministry of Budget and Economic Planning instructed MDAs to roll over at least 70 per cent of their 2025 capital allocations into the 2026 fiscal year, prioritising the completion of ongoing projects and reducing pressure on public finances amid revenue constraints.
However, figures from the 2026 Appropriation Bill show that new project allocations at the MDA level amount to N844.49bn, while Service Wide Votes push the total value of new projects to N3.5tn. This represents about 15.1 per cent of the proposed N23.21tn capital expenditure for 2026.
Service Wide Votes account for the largest share, estimated at N2.66tn, with significant provisions for outstanding contractors’ liabilities, financing programmes, security operations, and central government initiatives. The largest single item is N1.7tn earmarked for unpaid contractors’ obligations from previous years.
At least 82 MDAs reportedly included fresh capital or programme items, cutting across infrastructure, transport, health, education, security, and constituency-level interventions. Several agencies also listed new spending on vehicles, office equipment, renovations, housing, and utility projects.
Economists have raised concerns over weak fiscal discipline, warning that the continued introduction of new projects undermines budget credibility and strains limited resources. Critics also fault the National Assembly for inadequate scrutiny, arguing that rushed budget processes reduce accountability and weaken oversight.
The repeated breach of budget guidelines highlights ongoing challenges in enforcing fiscal controls and sustaining discipline within Nigeria’s public finance framework.
