BY GODWIN OBI
Despite a Federal Government directive barring the introduction of fresh capital projects in the 2026 budget, Ministries, Departments and Agencies (MDAs) have inserted new projects valued at about ₦3.5 trillion into the proposed spending plan, an analysis by Frontline Reporters has revealed.
The development contradicts 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.
Figures obtained from the 2026 Appropriation Bill show that new projects within MDAs alone amount to ₦844.49 billion. When Service-Wide Votes are included, the total value of fresh project entries rises sharply to ₦3.50 trillion.
Against the proposed 2026 capital expenditure of ₦23.21 trillion, the new project provision represents about 15.09 per cent of the total capital budget.
Of the ₦3.50 trillion, Service-Wide Votes account for ₦2.66 trillion, indicating that the bulk of the new spending is concentrated outside conventional ministerial capital allocations.
In December 2025, Frontline Reporters reported that the Federal Government directed MDAs to carry forward 70 per cent of their 2025 capital budgets into the 2026 fiscal year. The policy, contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning, was aimed at prioritising project completion and containing spending pressures amid weak revenue performance.
The circular instructed MDAs to maintain existing allocations and avoid proposing new capital projects, stressing that only essential expenditures aligned with national priorities would be considered.
However, a review of the 2026 budget documents shows that at least 82 MDAs included fresh capital or programme items. In total, more than 400 new project lines were identified, ranging from multibillion-naira infrastructure projects to smaller constituency-level interventions such as boreholes, training programmes and equipment supply.
The analysis also shows that 18 new projects were introduced under Service-Wide Votes, largely tied to financing programmes, security-related spending, liabilities and central government initiatives.
The largest single new project entry is a ₦1.70 trillion provision for outstanding contractors’ liabilities for 2024. This alone accounts for about 48.55 per cent of the total ₦3.50 trillion value of new projects.
In addition, three separate provisions of ₦100 billion each were made for the Nigeria Development Finance Corporation, the Economic Transformation Finance Programme and the Nigeria Growth Investment Fund, bringing their combined allocation to ₦300 billion.
Other major Service-Wide Vote items include ₦20 billion for the capitalisation of INFRACO, ₦30 billion for a Department of State Services special operations fund, and ₦110.31 billion for the Nigerian Air Force to settle outstanding obligations for six T-129 ATAK helicopters and three Mi-35 helicopters. Presidential air fleet logistics and management, including the operation of the National Forest Guard, was allocated ₦283.85 billion.
There are also take-off grants amounting to ₦41.12 billion for newly created MDAs under recurrent expenditure, and ₦19.50 billion in capital take-off grants for 12 new MDAs, largely in the health and education sectors.
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 tops the list with a ₦375 billion provision for additional financing under the Power Sector Recovery Operation tied to multilateral or bilateral loans. This single item accounts for 44.41 per cent of all new MDA-level projects and about 10.71 per cent of the total new projects, including Service-Wide Votes.
The Federal Ministry of Transport headquarters has ₦210.53 billion in new projects, including ₦68.50 billion for consultancy services related to rail projects and ₦142.03 billion for the construction of six bus terminals across the six geopolitical zones. These allocations represent about 24.93 per cent of new MDA projects.
The National Library of Nigeria has ₦24 billion earmarked for structural renovation and space upgrades across the six geopolitical zones, while the National Blood Service Commission received ₦15 billion for constructing and equipping a national blood service centre and rehabilitating state offices.
The Sokoto Rima River Basin Development Authority has ₦9.14 billion in new projects covering solar mini-grids, rural roads, irrigation pumps, water supply systems and youth empowerment initiatives.
Beyond these, several health and social sector institutions, teaching hospitals and medical centres received new project allocations ranging from ₦5 billion to ₦6.22 billion each.
The analysis further shows that ₦5.85 billion was allocated for vehicle purchases across MDAs, while ₦2.93 billion was earmarked for furnishing and office equipment. Renovation and refurbishment projects total ₦29.88 billion, largely driven by the national library upgrade and blood service office rehabilitation. Residential and staff accommodation projects amount to ₦25.29 billion.
This is not the first time MDAs have breached government directives on new projects. In December 2024, Frontline Reporters reported that the Federal Government barred new projects from the 2025 capital budget unless linked to the completion of ongoing initiatives, as stipulated in the 2024 Budget Call Circular.
Despite repeated directives, analysts say enforcement remains weak. The President of the Nigerian Economic Society, Professor Adeola Adenikinju, blamed late budget presentation for inadequate scrutiny by the National Assembly, warning that rushed approvals undermine fiscal discipline.
Similarly, development economist and Chief Executive of CSA Advisory, Dr Aliyu Ilias, said the situation reflects persistent fiscal discipline failures. He also faulted the National Assembly for weak oversight, arguing that tolerating such practices contributes to inefficiencies in the budget process.
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