At least N3.50tn worth of new projects has been built into the proposed 2026 budget, despite earlier directives by the Federal Government ordering Ministries, Departments and Agencies (MDAs) to roll over most of their 2025 capital allocations and avoid introducing fresh projects.
An analysis of the 2026 Appropriation Bill by DIP Connects Online News shows that new project entries across MDAs amount to N844.49bn, while the total rises to N3.50tn when Service-Wide Votes are included. Against the proposed N23.21tn capital budget for 2026, this represents about 15.09 per cent of total capital expenditure.
Of the N3.50tn, Service-Wide Votes alone account for N2.66tn, indicating that the largest single allocations for new projects sit outside traditional ministerial capital lines.
Earlier in December 2025, the Federal Government had instructed MDAs to carry over 70 per cent of their 2025 capital budget into the 2026 fiscal year to prioritize the completion of ongoing projects and curb spending pressures caused by weak revenue. The directive was contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning and sent to ministers, service chiefs, agency heads and other top government officials.
The circular stated that MDAs must upload 70 per cent of their 2025 Federal Government of Nigeria budget to continue into 2026 and that all rollovers must align with the country’s immediate needs and the government’s development priorities. These include national security, the economy, education, health, agriculture, infrastructure, power and energy, as well as social safety nets, women and youth empowerment. It also stressed that MDAs should continue with already approved 2025 allocations rather than propose fresh projects, with all spending to be properly scrutinized to ensure value for money.
However, a review of the 2026 budget shows that at least 82 MDAs have included one or more new capital or programme items. In total, more than 400 new project lines appear across MDAs, ranging from multibillion-naira infrastructure and health projects to smaller constituency-level interventions such as boreholes, training programmes and equipment supply.
Within the Service-Wide Votes, 18 new projects appear in the 2026 budget, largely tied to financing schemes, security-related spending, liabilities and central government initiatives. The single largest item is N1.70tn for outstanding 2024 contractors’ liabilities, representing about 48.55 per cent of the N3.50tn total new projects, including Service-Wide Votes.
Also included are three separate N100bn provisions for the Nigeria Development Finance Corporation, the Economic Transformation Finance Programme and the Nigeria Growth Investment Fund, totalling N300bn. Other major Service-Wide Vote entries include N20bn for the capitalization of INFRACO, N30bn for a Department of State Services special operations fund, and N110.31bn for the Nigerian Air Force to settle outstanding obligations on six T-129 ATAK helicopters and three Mi-35 helicopters. Another large allocation of N283.85bn is for presidential air fleet logistics and management, including the operation of the National Forest Guard.
There is also a N41.12bn recurrent take-off grant for new MDAs and a N19.50bn capital take-off grant for 12 newly created MDAs, mostly in health and education, alongside provisions for pension increases arising from consequential adjustments and payment of gratuities to civil servants.
At the MDA level, the five agencies with the highest value of new projects are the Budget Office of the Federation, the Federal Ministry of Transport headquarters, the National Library of Nigeria, the National Blood Service Commission and the Sokoto Rima River Basin Development Authority.
The Budget Office of the Federation leads with N375bn in new projects, mainly for a multilateral or bilateral tied loan for the Power Sector Recovery Operation additional financing. This single item accounts for about 44.41 per cent of the N844.49bn MDA new project total and about 10.71 per cent of the overall N3.50tn new projects, including Service-Wide Votes.
The Federal Ministry of Transport headquarters follows with N210.53bn in new projects. This includes N68.50bn for consultancy services for the Lekki–Ijebu Ode–Ore–Kajola railway and the coastal railway linking Badagry, Apapa and Tin Can, as well as N142.03bn for the construction of six bus terminals and transportation facilities across the six geopolitical zones. Together, these make up about 24.93 per cent of MDA-level new projects and 6.01 per cent of the overall total.
The National Library of Nigeria has N24bn for structural renovation and space upgrades across the six geopolitical zones, representing about 2.84 per cent of total MDA new projects. The National Blood Service Commission has N15bn for the construction and equipping of a national blood service centre and strategic national blood reserve in Abuja (N10bn), as well as the reconstruction and rehabilitation of state offices (N5bn), accounting for 1.78 per cent.
The Sokoto Rima River Basin Development Authority has N9.14bn in new projects, including N2bn for solar mini-grids, N1bn for solar-powered street lights for security, N3bn for rural roads, N140m for irrigation water pumps for Isa and Sabon Birni Federal Constituency, N1bn for solar-powered water pumping machines for farmers in Kebbi State, N1bn for small town water supply systems, and N1bn for youth empowerment materials. These make up about 1.08 per cent of MDA new projects.
Beyond the top five, several health and social sector institutions, including teaching hospitals and medical centres, have new project allocations ranging from N5bn to N6.22bn.
The review also shows N5.85bn earmarked for vehicle purchases, led by N1.5bn for the Federal University of Technology, Iyin Ekiti; N600m for FUADSI; and N500m for Jos University Teaching Hospital. Office furnishing and equipment amount to N2.93bn, driven by N1.18bn for two medical complexes at Nnamdi Azikiwe University Teaching Hospital, Nnewi; N435m for the Air Power Centre of Excellence; and N250m for a Pharmacy Council zonal office. Renovation and refurbishment total N29.88bn, largely from the N24bn National Library upgrade and N5bn for blood service offices, while residential and staff accommodation projects reach N25.29bn, including N16.48bn for Defence Headquarters facilities and N7bn for DSS housing.
This is not the first time the Federal Government has tried to block the introduction of new projects. In December 2024, MDAs were similarly directed to exclude new projects from their 2025 budget proposals unless they were linked to completing ongoing initiatives. The 2024 Budget Call Circular stated clearly that no new projects would be allowed into the 2025 capital budget unless sufficient funds were provided to finish existing ones, with MDAs required to align spending with national priorities such as security, the economy, education, health, agriculture, infrastructure, power and energy, and social safety nets, especially for women and youths.
Despite this, MDAs continue to introduce new projects, often without effective scrutiny from the Budget Office of the Federation or the National Assembly.
The National President of the Nigerian Economic Society, Professor Adeola Adenikinju, has argued that late presentation of budgets prevents proper scrutiny by the National Assembly. He said the 2026 budget should have been presented early to allow consultations and ensure a predictable fiscal system, adding that rushed approvals prevent proper analysis and create a disorganised fiscal environment.
Similarly, development economist and Chief Executive of CSA Advisory, Dr Aliyu Ilias, said the Federal Government suffers from serious fiscal discipline problems. He argued that weak performance on budget discipline appears intentional, adding that the National Assembly also bears responsibility for failing in its oversight role and allowing inefficiencies to persist.
Elijah Adeyemi
