An analysis of the proposed 2026 Appropriation Bill has revealed that Ministries, Departments and Agencies have inserted at least N3.50tn worth of new projects, despite a Federal Government directive barring fresh capital initiatives.
Findings by The Press show that while new project entries within MDAs amount to N844.49bn, the figure rises sharply to N3.50tn when Service Wide Votes are included. This represents about 15.09 per cent of the proposed N23.21tn capital expenditure for 2026.
The development contradicts earlier budget preparation guidelines, which instructed MDAs to roll over 70 per cent of their 2025 capital allocations into 2026 and focus strictly on completing ongoing projects. The directive, contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning, warned against the introduction of new capital projects and promised strict scrutiny of all expenditure.
However, a review of the budget documents indicates that at least 82 MDAs have introduced fresh capital or programme items, with over 400 new project lines captured across ministries and agencies. These range from multibillion-naira infrastructure and health projects to smaller constituency-based interventions such as boreholes, training programmes and equipment supply.
Service Wide Votes alone account for N2.66tn of the new projects, reflecting a heavy concentration of allocations outside traditional ministerial capital votes. The largest single item is N1.70tn earmarked for outstanding contractors’ liabilities from 2024, which makes up nearly half of the total new project value.
Other major Service Wide Votes include three N100bn provisions for the Nigeria Development Finance Corporation, the Economic Transformation Finance Programme and the Nigeria Growth Investment Fund, as well as N283.85bn for presidential air fleet logistics and the National Forest Guard. Additional allocations cover security operations, defence aircraft obligations, take-off grants for newly created MDAs, pension adjustments and civil service gratuities.
At the MDA level, the Budget Office of the Federation tops the list with a N375bn provision for additional financing under the Power Sector Recovery Operation. This single item accounts for over 44 per cent of all new MDA projects and about 11 per cent of the overall new project portfolio.
The Federal Ministry of Transport follows with N210.53bn for consultancy services on rail projects and the construction of bus terminals across the six geopolitical zones. Other notable allocations include N24bn for the renovation and upgrade of the National Library of Nigeria nationwide, N15bn for facilities and equipment under the National Blood Service Commission, and N9.14bn for various rural infrastructure and empowerment projects under the Sokoto Rima River Basin Development Authority.
Further analysis shows that new projects also include N5.85bn for vehicle purchases, N2.93bn for furniture and office equipment, N29.88bn for renovation and refurbishment works, and N25.29bn for residential and staff accommodation, largely within defence and security agencies.
This is not the first time MDAs have been accused of flouting budgetary restrictions. Similar directives issued ahead of the 2025 budget also barred new projects unless tied to the completion of ongoing ones. Despite these rules, fresh initiatives continue to find their way into annual budgets.
Economists have blamed weak fiscal discipline and inadequate legislative scrutiny for the recurring breaches. The President of the Nigerian Economic Society, Prof. Adeola Adenikinju, warned that late budget submissions undermine proper analysis by the National Assembly, while development economist Dr Aliyu Ilias described the trend as a sign of persistent fiscal indiscipline, accusing both the executive and legislature of tolerating inefficiencies in the budget process.
