An analysis of the proposed 2026 federal budget has revealed that at least ₦3.50 trillion worth of new projects have been inserted, even though government guidelines had clearly warned Ministries, Departments and Agencies (MDAs) against introducing fresh capital projects.
Earlier budget instructions directed MDAs to roll over 70 per cent of their 2025 capital allocations into 2026, with emphasis placed on completing ongoing projects rather than starting new ones. Despite this, figures from the 2026 Appropriation Bill show that new projects across MDAs alone amount to ₦844.49 billion, while the total jumps to ₦3.50 trillion when Service Wide Votes are added.
Out of the proposed ₦23.21 trillion capital budget for 2026, the new projects account for about 15.09 per cent. A major chunk of this comes from Service Wide Votes, which alone contain ₦2.66 trillion worth of fresh project entries, showing that the biggest spending lines sit outside regular ministerial budgets.
Back in December 2025, the Federal Government had reiterated that MDAs must carry forward 70 per cent of their 2025 capital budgets into 2026. This directive, issued through the 2026 Abridged Budget Call Circular by the Ministry of Budget and Economic Planning, stressed alignment with national priorities such as security, the economy, education, health, agriculture, infrastructure, power and social welfare.
The circular made it clear that ministries were expected to stick to already approved projects and avoid new ones, warning that all spending would face strict scrutiny to ensure value for money. However, findings show that at least 82 MDAs still introduced fresh capital or programme items into the budget.
Across these agencies, more than 400 new project lines appear in the proposal. These range from large-scale infrastructure and health investments to smaller constituency projects like boreholes, training programmes and equipment supply.
Service Wide Votes also feature 18 new projects, many of them tied to financing programmes, security operations and outstanding government liabilities. The single biggest item is ₦1.70 trillion set aside for unpaid contractors’ liabilities from 2024, which alone accounts for nearly half of the total new project value.
Other major Service Wide Vote allocations include three separate ₦100 billion provisions for the Nigeria Development Finance Corporation, the Economic Transformation Finance Programme and the Nigeria Growth Investment Fund. Additional entries cover defence-related spending, presidential air fleet logistics, forest guard operations, and funding for new MDAs, particularly in health and education.
At the MDA level, the Budget Office of the Federation tops the list with ₦375 billion allocated for a power sector recovery loan, making up over 44 per cent of all new MDA projects. The Federal Ministry of Transport follows with ₦210.53 billion for railway consultancy services and the construction of bus terminals across the six geopolitical zones.
Other notable allocations include ₦24 billion for the renovation of the National Library of Nigeria nationwide, ₦15 billion for new blood service facilities by the National Blood Service Commission, and ₦9.14 billion in assorted solar, water and rural infrastructure projects under the Sokoto Rima River Basin Development Authority.
Beyond these, several health institutions, teaching hospitals and social sector agencies received new project allocations running into billions. Funds were also earmarked for vehicles, office furnishing, renovations, staff housing and accommodation projects.
This is not the first time such directives have been ignored. Similar instructions were issued ahead of the 2025 budget, warning MDAs against introducing new projects unless ongoing ones were fully funded. Despite this, the pattern appears to be repeating itself.
Economic experts have raised concerns over the implications. The President of the Nigerian Economic Society, Professor Adeola Adenikinju, blamed late budget presentations for weak legislative scrutiny, warning that rushed approvals prevent proper analysis. Development economist Dr Aliyu Ilias went further, describing the situation as a clear failure of fiscal discipline, accusing both the executive and the National Assembly of tolerating inefficiencies.
Overall, the growing presence of new projects in the 2026 budget raises fresh questions about budget discipline, oversight, and the government’s ability to stick to its own fiscal rules.
