There are at least N3.50tn new projects in the proposed 2026 budget, according to an analysis by The PUNCH.

This is despite earlier budget preparation guidelines that directed Ministries, Departments, and Agencies to carry over 70 per cent of their 2025 capital allocation into 2026 and avoid introducing new capital projects.

Figures collated from the 2026 Appropriation Bill show that new project entries amount to N844.49bn across MDAs, while the total rises to N3.50tn when Service Wide Votes are included.

Against the proposed capital budget of N23.21tn for 2026, the combined new project provision of N3.50tn represents 15.09 per cent of total capital expenditure.

The Service-Wide Votes component within the new project portfolio totals N2.66tn, reflecting the concentration of the largest single allocations outside conventional ministerial capital lines.

Earlier in December 2025, The PUNCH reported that the Federal Government ordered ministries, departments, and agencies to carry over 70 per cent of their 2025 capital budget into the 2026 fiscal year as the administration moves to prioritize the completion of existing projects and contain spending pressures in the face of weak revenues.

This directive is contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning and circulated to all ministers, service chiefs, heads of agencies, and top government officials in Abuja.

According to the circular, “MDAs are to upload 70 per cent of their 2025 FGN Budget to continue in FY2026. All such rollover and uploads MUST be in line with the immediate needs of the country as well as the government’s development priorities that align with the policy direction of the new administration, which hinges on National Security, the Economy, Education, Health, Agriculture, Infrastructure, Power & Energy, as well as social safety nets, women & youth empowerment.”

It stated that ministries and agencies must continue with the allocations already approved in the 2025 budget rather than seeking fresh projects. The circular said all expenditure would be properly scrutinized to allow only essential spending and to ensure value for money

However, The PUNCH observed that no fewer than 82 MDAs have at least one fresh capital or programme item included in the budget.

Across these MDAs, the proposed budget contains over 400 new project lines, ranging from large multibillion-naira infrastructure and health investments to smaller constituency-level interventions such as boreholes, training schemes, and equipment supply.

Also, the review of the Service Wide Votes, with 18 new projects in the 2026 appropriation bill, shows that a significant share of the new project portfolio is tied to financing programmes, security-related provisions, liabilities, and central initiatives.

The largest single line item is the provision for 2024 outstanding contractors’ liabilities put at N1.70tn. This allocation alone accounts for about 48.55 per cent of the N3.50tn total new projects, including Service Wide Votes.

Also, the bill includes three N100bn provisions under Service Wide Votes for the Nigeria Development Finance Corporation, the Economic Transformation Finance Programme, and the Nigeria Growth Investment Fund, bringing the total for these three funding lines to N300bn.

The Service Wide Votes entries also include capitalization of INFRACO of N20bn, a DSS special operations fund of N30bn, and N110.31bn for the Nigerian Air Force to meet outstanding obligations on six T-129 ATAK helicopters and three Mi-35 helicopters. Another large entry is presidential air fleet logistics and management, including operation of the National Forest Guard, put at N283.85bn.

There is also a recurrent related take-off grant line for new MDAs at N41.12bn and a capital take-off grant line for 12 new MDAs, most in health and education, at N19.50bn, alongside other service-wide provisions such as pension increases due to consequential adjustment and payment of gratuity to civil servants.

Within the MDA level items, the five MDAs with the highest value of new projects, based on the figures provided, 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 has the largest MDA level new project provision at N375bn for a multilateral or bilateral tied loan line for the Power Sector Recovery Operation, additional financing. This single item is larger than the combined new project allocations of most other MDAs listed.

As a share of the N844.49bn MDA total, the Budget Office provision accounts for about 44.41 per cent. As a share of the total new projects, including Service Wide Votes, it accounts for about 10.71 per cent.

The Federal Ministry of Transport headquarters has N210.53bn in new projects, made up of N68.50bn for consultancy services for the Lekki Ijebu Ode Ore Kajola railway and coastal railway, Badagry Apapa Tin Can, and N142.03bn for the construction of six bus terminals and transportation facilities in the six geopolitical zones under national public transportation.

The ministry’s two entries together represent about 24.93 per cent of the N844.49bn MDA new project total and about 6.01 per cent of the N3.50tn total, including Service Wide Votes.

The National Library of Nigeria has a new project provision of N24bn for structural renovation and space upgrade of the National Library of Nigeria across the six geopolitical zones. This is the third largest MDA new project amount in the list and accounts for about 2.84 per cent of the total MDA new projects.

The National Blood Service Commission has N15bn in new projects for the construction and equipping of a national blood service centre and strategic national blood reserve in Abuja, valued at N10bn, and the reconstruction or rehabilitation of NBSC state offices valued at N5bn. The combined total represents about 1.78 per cent of the MDA new project total.

The Sokoto Rima River Basin Development Authority has N9.14bn in new projects. These include construction of solar mini grids in selected locations in the catchment area at N2bn, construction of all in one solar street lights as security lighting points at N1bn, construction of rural roads to selected rural communities at N3bn, and supply of water pumps for irrigation to Isa and Sabon Birni federal constituency at N140m.

Others include the supply of 3 inch solar powered water pumping machines to farmers in Kebbi State at N1bn, provision of small town water supply system with reticulation at N1bn, and provision of empowerment materials to support the livelihood of youths at N1bn. This portfolio accounts for about 1.08 per cent of the total MDA new projects.

Beyond the top five, the next tier of MDAs by size includes health and social sector institutions clustered around N5bn to N6.22bn per entity, as well as several teaching hospitals and medical centres.

The PUNCH further observed that N5.85bn in new projects is for vehicle purchases, led by N1.5bn for vehicles at FUT Iyin Ekiti, N600m at FUADSI, and N500m at JUTH.

Furnishing and office equipment account for N2.93bn, driven by N1.18bn for two medical complexes at NAUTH Nnewi, N435m at the Air Power Centre of Excellence, and N250m for a Pharmacy Council zonal office. Renovation and refurbishment total N29.88bn, dominated by the N24bn national library upgrade and N5bn for blood service offices.

Residential and staff accommodation projects reach N25.29bn, anchored by N16.48bn for Defence Headquarters facilities and N7bn for DSS housing.

It was further observed that this was not the first time the Federal Government had restricted the addition of new projects into the national budget.

In December 2024, The PUNCH reported that the Federal Government directed all Ministries, Departments, and Agencies to exclude new projects from their budget submissions for 2025 unless they can be linked to the completion of ongoing initiatives, according to the 2024 Federal Government Budget Call Circular.

The 2024 Budget Call Circular clearly states that no new projects will be admitted into the 2025 capital budget unless MDAs can demonstrate that sufficient resources have been allocated to complete ongoing projects.

The document read, “Again, the thrust of the FGN’s capital expenditure programme in 2025 will be the completion of as many cardinal ongoing projects as possible, rather than starting new projects. Thus, MDAs are hereby advised that new projects will not be admitted into the capital budget for 2025 unless adequate provision has been made for the completion/work programme of all ongoing projects.”

Also, MDAs have been instructed to carefully scrutinize and justify their proposed projects and programmes, ensuring that these align with the country’s immediate needs and the government’s key development priorities.

These priorities, as set out in the circular, include national security, economy, education, health, agriculture, infrastructure, power and energy, as well as social safety nets, with a focus on women and youth empowerment.

However, it appears that MDAs often flout this directive without any scrutiny from the Budget Office of the Federation or the National Assembly.

National President of the Nigerian Economic Society, Professor Adeola Adenikinju, earlier argued that the late budget presentation prevents the National Assembly from carrying out proper scrutiny.

Adenikinju said, “The 2026 budget should have been in the National Assembly for consultation so that we can keep to this January 1st thing. That makes our fiscal system predictable.”

The economist said the rush to approve budgets “does not allow for proper analysis” and prevents ministries and departments from fully defending their plans. He warned that the practice was creating a disorganized fiscal environment.

A development economist and Chief Executive of CSA Advisory, Dr. Aliyu Ilias, told The PUNCH that the Federal Government has “fiscal discipline problems.”

He insisted that government performance on fiscal and budget discipline “for now has not done well” and suggested that the lapses were deliberate. “I am sure I want to say that it is intentional because you could have seen that this is becoming an error,” he said.

Ilias said the problem also rested with the National Assembly, which he accused of failing in its oversight duty. (The PUNCH)

Update news