Reported by: Ijeoma G | Edited by: Gabriel Osa
Abuja, Nigeria — Ministries, Departments and Agencies (MDAs) of the Federal Government have reportedly inserted at least ₦3.5 trillion worth of new projects into the 2026 federal budget — a substantial divergence from a government‑mandated freeze on fresh capital expenditures intended to prioritise ongoing projects and ease fiscal pressure.
An independent analysis of the 2026 Appropriation Bill by The PUNCH indicates that more than 400 new project lines were introduced across 82 MDAs, despite explicit budget circulars directing agencies to refrain from proposing new capital items and instead roll over 70 per cent of their 2025 capital allocations into the new fiscal year. The new project entries are estimated to represent about 15 per cent of the proposed ₦23.21 trillion capital budget.
The assessment reveals two broad categories of fresh allocations: MDA‑level project lines and Service‑Wide Votes (SWVs) — central budget lines outside standard departmental programmes often used to fund cross‑cutting obligations. At the MDA level alone, ₦844.49 billion of new capital items were identified. Combined with SWVs, the total comes to around ₦3.50 trillion.
Among the largest new entries is a ₦1.70 trillion fund set aside for outstanding contractors’ liabilities from 2024, making it the single largest new capital allocation. Other significant additions include ₦300 billion spread across development finance and transformation programmes. Service‑Wide Votes also now encompass funds earmarked for military obligations, aviation logistics, new civil service take‑off grants, and pension adjustments.
At the ministry level, substantial new allocations feature prominently in the portfolios of the Budget Office of the Federation, the Federal Ministry of Transport, and across community‑focused interventions, including library upgrades and rural infrastructure initiatives — all entries that were not part of the original rollover plan contemplated by the budget freeze directive.
The capital expenditure freeze was outlined in a circular from the Federal Ministry of Budget and Economic Planning. It directed MDAs to prioritise the completion of ongoing projects and to avoid creating fresh capital items, with the broader goal of containing fiscal pressure amid weak revenue performance and rising debt servicing costs. Agencies were also asked to align budget submissions with national priorities, including security, education, health, infrastructure and social safety nets.
The insertion of substantial new projects has raised concerns among policy analysts and civil society advocates about the enforcement of fiscal discipline and the effectiveness of internal budget controls. Critics argue that the proliferation of new capital lines undermines the policy’s intent and could divert scarce resources from completing existing projects.
Observers also highlight the timing of the budget process — noting that late presentation and rapid legislative approval of the appropriation bill may have limited the opportunity for thorough scrutiny and accountability. Some analysts say that the practice of adding projects after initial guidelines are issued points to weaknesses in both executive oversight and legislative review mechanisms.
Economists and budget experts have expressed concern that routine last‑minute additions to the budget could erode credibility and undermine long‑term planning. According to these experts, the predictability of public finances is essential for economic stability, investor confidence, and effective implementation of government programmes.
One recurring critique is that the Budget Office of the Federation and the National Assembly have not sufficiently enforced compliance with the original budget policy directive. Strengthening oversight — including clear criteria for when and how new projects may be introduced — is seen as critical to ensuring that budgetary outcomes align with stated fiscal priorities.
Weak enforcement mechanisms, combined with the political incentives to expand project lists to satisfy local interests, also contribute to budgetary slippage and suboptimal use of public funds. Analysts argue that greater transparency, robust legislative review and stronger institutional checks are necessary to prevent future deviations from agreed budget guidelines.
The tension between policy objectives and budgetary practice in the 2026 Appropriation Bill reflects deeper challenges in public financial management in Nigeria. As the government grapples with limited revenue inflows, high debt servicing costs and competing developmental needs, adherence to fiscal rules and prioritisation frameworks becomes increasingly vital.
For citizens, the implications are real: deviation from agreed budgetary directives can mean slower completion of existing infrastructure projects, reduced funding for critical services, and continued pressure on government finances. For the government, these developments test the credibility of its budget policy frameworks and call into question its capacity to enforce compliance among MDAs.
As the 2026 budget moves toward implementation, attention is likely to turn to monitoring agencies’ capacity to deliver on both existing and newly introduced projects, and whether the promise of fiscal rationalisation will translate into measurable outcomes on the ground.
📩 Stone Reporters News | 🌍 stonereportersnews.com
✉️ info@stonereportersnews.com | 📘 Facebook: Stone Reporters | 🐦 X (Twitter): @StoneReportNew | 📸 Instagram: @stonereportersnews
Add comment
Comments