An analysis of the proposed 2026 budget by Punch reveals that over ₦3.5 trillion in new projects have been included, despite directives for Ministries, Departments, and Agencies (MDAs) to carry over 70% of their 2025 capital allocations and avoid fresh projects.
Data from the 2026 Appropriation Bill shows that new projects at MDA level alone total ₦844.49 billion, rising to ₦3.5 trillion when Service-Wide Votes are included. This represents about 15.1% of the proposed ₦23.21 trillion capital expenditure for 2026.
In December 2025, the Federal Government instructed MDAs to roll over 70% of their 2025 budgets, emphasizing the completion of ongoing projects amid weak revenue performance. Despite this, at least 82 MDAs introduced over 400 new capital or program items, including infrastructure, health initiatives, boreholes, training schemes, and equipment supply.
Service-Wide Votes Dominate New Allocations
Service-Wide Votes account for ₦2.66 trillion of the ₦3.5 trillion, with the largest single allocation of ₦1.7 trillion covering outstanding contractor liabilities from 2024. Other notable allocations include ₦300 billion to the Nigeria Development Finance Corporation, Economic Transformation Finance Programme, and Nigeria Growth Investment Fund, as well as funds for INFRACO, DSS special operations, and the Nigerian Air Force.
Top MDAs with the Highest New Project Values
- Budget Office of the Federation: ₦375 billion for Power Sector Recovery loans
- Federal Ministry of Transport: ₦210.53 billion for consultancy and national bus terminals
- National Library of Nigeria: ₦24 billion for renovations and upgrades
- National Blood Service Commission: ₦15 billion for national blood service centres
- Sokoto Rima River Basin Development Authority: ₦9.14 billion for solar mini-grids, rural roads, irrigation, and youth programs
Additional allocations include ₦5.85 billion for vehicle purchases, ₦2.93 billion for office equipment, ₦29.88 billion for renovations, and ₦25.29 billion for residential and staff accommodation.
Concerns Over Fiscal Discipline
Experts warn that the late presentation of the budget limits proper scrutiny by the National Assembly. Professor Adeola Adenikinju of the Nigerian Economic Society stressed that rushed approvals prevent full analysis and create a disorganized fiscal environment. Dr Aliyu Ilias, CEO of CSA Advisory, said the budget reflects fiscal discipline issues and that lapses may be deliberate, noting that oversight by the National Assembly has been insufficient.