By Adeola Kunle
Nearly 78 Ministries, Departments and Agencies (MDAs) of the Federal Government have proposed close to N400 billion in the 2026 budget for the construction and renovation of community halls, mosques, traditional rulers' palaces, civic centres and village market squares, according to findings by DIP CONNECT ONLINE NEWS.
An examination of the proposed budget also shows that more than half of the allocation is earmarked for projects considered non-developmental, including the distribution of grains, motorcycles and tricycles, sponsorship of community thrift groups, construction of museums and mini stadiums, among other initiatives.
The affected MDAs cut across several sectors, including the Defence Headquarters, Nigerian Air Force, Air Power Centre of Excellence, Nigerian Defence Academy, Technical Aid Corps, Foreign Mission, Federal Ministry of Information and National Orientation, Federal College of Land Resources, Owerri, Institute of Agricultural Research and Training, Ibadan, and the Office of the Auditor-General for the Federation.
Others include the Federal Ministry of Industry, Trade and Investment, Federal Institute of Industrial Research, Oshodi, National Building and Road Research Institute, National Productivity Centre, Industrial Arbitration Panel, Industrial Training Fund, National Agricultural Extension and Research Liaison Services, Zaria, Federal Cooperative College, Kaduna, and several other government institutions.
The proposed spending has drawn criticism from economists and policy analysts, who argue that many of the projects do not reflect Nigeria's most pressing development needs, especially in view of the country's fiscal challenges.
According to the analysts, allocating hundreds of billions of naira to numerous small-scale projects weakens the government's ability to invest meaningfully in critical sectors such as healthcare, education, power supply, road infrastructure and security, which have greater long-term economic and social benefits.
They also contend that the widespread inclusion of fragmented projects undermines fiscal discipline while diverting scarce public resources away from strategic national priorities.
Experts further expressed concern that several items listed in the budgets of some agencies have little or no relationship with their statutory responsibilities.
For example, the National Building and Road Research Institute in Lagos is expected to finance projects including village halls in Akukwa, Anambra State, an international market in Birniwa, Jigawa State, traditional rulers' palaces in Sarkin Wuse, Osokodoko and Osana in Rivers State, as well as the construction and renovation of the Agbana of Isanlu's palace in Kogi State.
The same agency is also expected to fund market stalls in Gubio, a multipurpose hall in Sanga, Kaduna State, and the renovation of five mosques located in Izalla and Zawiya Centre in Kebbi State, Ikole in Ekiti State, and Mangadu and Samani in Jigawa State. Collectively, these projects are valued at more than N4 billion.
Similarly, the National Productivity Centre's budget contains allocations for support to Ijaw musicians, construction of an Emir's palace in Nguru, Yusufari, Machina and Karasuwa in Yobe State, an econometrics laboratory in Ekiti State, the construction and rehabilitation of Obas' palaces in Ado Odo, Yewa and Ajilefe in Ogun State, as well as an abattoir project in Akko, Gombe State.
The National Mathematical Centre, whose core responsibility is mathematical research and training, is also expected to finance the construction of a Sociology Department building at Ahmadu Bello University, Zaria, a project many observers say falls outside its mandate.
Consultant economist and former central banker, Chukwunonso Ihuma, attributed the situation to weak legislative oversight, alleging that members of the National Assembly often introduce projects into budgets during the appropriation process.
According to him, lawmakers frequently increase budget estimates submitted by MDAs while inserting projects with limited national impact.
He argued that Nigeria should return to a zero-based budgeting system, where every expenditure must be justified from the beginning rather than carried over from previous budgets.
Ihuma also suggested that the Director-General of the Budget Office should have the authority to remove projects that have little relevance to national development.
He maintained that markets are primarily the responsibility of state and local governments, while village unions and traditional institutions should handle projects such as civic centres and palace renovations.
A zero-based budget requires every proposed expenditure to be fully justified before approval instead of relying on previous spending patterns.
President Bola Tinubu signed the 2026 Appropriation Bill into law in April, approving a total expenditure of N68.32 trillion. At the same time, he extended the implementation period of the 2025 budget from March 31, 2026, to June 30, 2026.
In July, the Senate further approved a three-month extension for implementing the capital component of the 2025 budget, shifting the deadline from June 30 to September 30, 2026. Lawmakers said the extension was intended to prevent project abandonment and ensure full utilisation of released funds, meaning implementation of the 2025 budget is continuing well into 2026.
The Nigerian Institute of Social and Economic Research (NISER) stated that successful implementation of the 2025 budget would depend on stronger fiscal and monetary coordination, improved revenue generation and structural reforms aimed at tackling inflation, exchange rate volatility, social inequality and governance challenges while promoting economic diversification.
The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said the Federal Government's decision to discontinue the use of Ways and Means financing has created significant funding pressures.
He explained that previous reliance on Ways and Means, which allowed the government to obtain financing from the Central Bank of Nigeria, had accumulated to about N30 trillion during the administration of former President Muhammadu Buhari before being securitised.
Analysts have also questioned the assumptions underlying the 2026 budget, describing them as overly optimistic.
The budget projects N36.87 trillion in revenue, leaving a substantial deficit to be financed through borrowing. It assumes an oil price benchmark of 75 dollars per barrel, an oil production target of 1.84 million barrels per day, GDP growth of between 4.28 per cent and 4.68 per cent, while debt servicing is estimated at N15.81 trillion.
Commenting further, Yusuf said Nigeria needs more realistic budget projections and greater reliance on professional expertise in budget preparation.
He noted that the country is still struggling to fully implement the 2025 budget while already planning for 2026, warning that poor budgeting reduces stakeholder confidence and allows projects that constitutionally belong to state and local governments to appear in the federal budget.
Media strategist and former adviser to Vice President Namadi Sambo, Umar Sani, also observed that even when such projects are included in appropriation laws, the executive does not always implement them, leading to frequent complaints by lawmakers.
He added that previous presidents had rejected appropriation bills containing numerous insignificant projects, noting that both former Presidents Goodluck Jonathan and Muhammadu Buhari declined to assent to similar budgets on some occasions.
ADEOLA KUNLE
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