'Stop Wasting Public Funds on Palaces While Nigerians Starve' — Workers' Group Condemns 2026 Budget Allocation

Published on 2 August 2026 at 07:38

Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.

The Federal Workers Forum has launched a scathing attack on the Bola Tinubu-led government over the allocation of ₦22.15 billion in the 2026 budget for the construction and renovation of palaces across Nigeria, describing the expenditure as insensitive and disconnected from the harsh economic realities confronting millions of citizens. In a statement issued on Saturday, August 1, 2026, and signed by its Coordinator, Andrew Emelieze, and General Secretary, Ogundele Ayo, the group condemned the government for prioritising what it termed "luxury projects" while workers grapple with soaring inflation, stagnant wages, and the rising costs of food, transportation, healthcare, and education. The workers' forum argued that the allocation, which covers 106 traditional rulers' palaces, comes at a time when many Nigerians are struggling to survive amid worsening economic conditions and widespread poverty.

The Federal Government had earlier earmarked ₦22.15 billion in the 2026 Appropriation Act for the construction, renovation, and furnishing of traditional rulers' palaces across the country, according to budget reviews by civil society organisations and media reports. The largest single allocation, ₦2.66 billion, was designated for the renovation of community halls and palaces in selected central communities in Lagos State, under the supervision of the Federal Ministry of Agriculture and Food Security, a move that has raised questions about the constitutional basis for such expenditures. Other allocations include ₦750 million for the completion and furnishing of four palaces in Kogi State, ₦700 million for the construction and rehabilitation of palaces in Plateau State, and ₦595 million for similar projects in other states.

The Federal Workers Forum specifically questioned the use of public institutions and research agencies to finance projects unrelated to their statutory mandates, pointing to the Nigerian Institute for Oceanography and Marine Research and the Cocoa Research Institute of Nigeria as examples of agencies allegedly linked to funding palace construction and renovation. "Nigerians deserve to know why institutions such as the Nigerian Institute for Oceanography and Marine Research, the Cocoa Research Institute of Nigeria, and other public establishments are associated with funding palace renovation and construction," the group said, describing such practices as raising serious concerns about transparency, accountability, and the prudent management of public resources. The workers' group also referenced the controversy surrounding reports of an alleged ₦8 trillion omitted from the proposed 2026 budget, noting that although the Federal Government has denied the claim, it should provide greater transparency over public spending.

The allocation has drawn widespread criticism beyond the workers' forum. Former Vice President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, has described the expenditure as unconstitutional, arguing that traditional institutions are matters within the constitutional competence of state and local governments, not the Federal Government. "President Tinubu swore an oath to preserve, protect and defend the Constitution, not to amend it through the Appropriation Act," Atiku said, questioning under which provision of the Constitution the Federal Government is appropriating ₦22.15 billion from the Federation Account for palace projects. The Civil Society Legislative Advocacy Centre (CISLAC) and the Coalition of United Political Parties (CUPP) have also criticised the allocation, describing it as a misalignment of priorities amid the country's economic challenges.

The Federal Workers Forum has demanded the immediate publication of the full details of the palace-related allocations and called for a comprehensive review of what it termed questionable budgetary provisions. The group also renewed its demand for the implementation of a ₦300,000 living wage for federal workers, arguing that no worker who dedicates their strength and service to building the nation should be condemned to poverty while public resources are squandered on projects that do little to improve the living conditions of ordinary Nigerians. "The wealth of Nigeria must be used to guarantee decent wages, quality healthcare, affordable education, reliable infrastructure, and social protection, not to fund extravagant projects that deepen public distrust and economic inequality," the group declared.

The controversy has also drawn attention to the lack of transparency in the allocation, with the budget tracking organisation Tracka, under the BudgIT Foundation, raising concerns that 11 palace projects valued at ₦5.85 billion have no identifiable locations, making public monitoring and project verification difficult. The Federal Workers Forum has urged federal workers, labour unions, students, youth organisations, and civil society groups to unite in demanding accountability, prudent management of public resources, and policies that prioritise the welfare of ordinary Nigerians over the comfort of the political elite. "Public resources belong to the Nigerian people, not to a privileged few. Enough is Enough!" the group declared.

As of the time of this report, the Federal Government had not issued an official response to the specific criticisms raised by the Federal Workers Forum. However, the growing outcry from workers' groups, opposition politicians, and civil society organisations over the palace allocations has intensified scrutiny of the 2026 budget and raised fundamental questions about the government's spending priorities at a time when millions of Nigerians are struggling to afford basic necessities. The Federal Workers Forum's demand for transparency and accountability reflects a broader public frustration with what many perceive as a disconnect between the government's lavish expenditures and the harsh realities facing ordinary citizens.

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