Despite a firm directive by the Federal Government to halt the introduction of fresh capital projects, fresh analysis of the proposed 2026 Appropriation Bill shows that Ministries, Departments and Agencies (MDAs) have collectively injected about ₦3.5 trillion worth of new projects into the spending plan, raising fresh concerns over fiscal discipline, budget credibility and oversight.
The revelation, based on a detailed review of budget documents, underscores persistent contradictions between official fiscal policy pronouncements and actual budget implementation practices, even as the Tinubu administration grapples with weak revenues, rising debt servicing costs and mounting public scrutiny.
Data extracted from the 2026 budget estimates indicate that ₦844.49 billion worth of new capital items were inserted directly under MDAs, while an additional ₦2.66 trillion was embedded within Service Wide Votes.
Combined, the new project portfolio represents 15.09 per cent of the total proposed capital expenditure of ₦23.21 trillion for the 2026 fiscal year.
This development comes barely weeks after the Federal Ministry of Budget and Economic Planning issued a strict Budget Call Circular instructing MDAs to roll over at least 70 per cent of their 2025 capital allocations and refrain from proposing new projects.
2026 Budget New Projects Defy Government’s Own Guidelines
The 2026 Budget Call Circular, circulated to ministers, heads of agencies and service chiefs in December 2025, clearly emphasised the need to prioritise the completion of ongoing projects over the initiation of fresh ones.
The policy was framed as part of broader efforts to curb waste, avoid project abandonment and stabilise public finances.
The circular directed that rollover allocations must align with the administration’s priority sectors, including national security, economic growth, education, health, agriculture, infrastructure, power and energy, as well as social safety nets and youth empowerment.
However, contrary to this directive, no fewer than 82 MDAs were found to have introduced at least one new capital or programme line in the 2026 budget.
In total, more than 400 new project entries were identified across federal agencies, ranging from multibillion-naira infrastructure schemes to constituency-scale interventions such as boreholes, rural roads, empowerment programmes and training initiatives.
A particularly striking feature of the budget is the dominance of Service Wide Votes, which account for the bulk of the 2026 budget new projects.
Out of the ₦3.5 trillion total, ₦2.66 trillion sits outside traditional ministerial envelopes, raising questions about transparency and accountability.
The single largest new item is ₦1.70 trillion earmarked for outstanding contractors’ liabilities from 2024.
This alone accounts for nearly 49 per cent of all new projects captured in the budget, highlighting the growing fiscal burden of unpaid obligations from previous years.
Other major Service Wide Vote provisions include ₦300 billion allocated to three financing vehicles—the Nigeria Development Finance Corporation, the Economic Transformation Finance Programme and the Nigeria Growth Investment Fund.
Security-related allocations also feature prominently, with ₦110.31 billion set aside for the Nigerian Air Force to settle obligations tied to military helicopters, alongside ₦283.85 billion for presidential air fleet logistics and national forest guard operations.
MDAs Lead Fresh Spending Push
At the MDA level, the Budget Office of the Federation tops the list of agencies with new project allocations, posting ₦375 billion for a multilateral tied loan linked to additional financing for the Power Sector Recovery Operation.
This single entry represents over 44 per cent of total new MDA-level projects.
The Federal Ministry of Transport follows closely with ₦210.53 billion in new allocations, including consultancy services for proposed rail corridors and the construction of six bus terminals across the geopolitical zones under a national public transportation initiative.
Other notable entries include ₦24 billion for the renovation and expansion of the National Library of Nigeria across six zones, ₦15 billion for the National Blood Service Commission to establish a national blood reserve and rehabilitate state offices, and ₦9.14 billion for projects under the Sokoto Rima River Basin Development Authority, largely focused on solar energy, rural roads and irrigation support.
Beyond these headline items, the budget also reveals fresh spending on vehicles, office equipment, staff housing and renovations. Vehicle purchases alone account for ₦5.85 billion, while furnishing and office equipment total nearly ₦3 billion.
Recurring Pattern of Budget Contradictions
This is not the first time budget discipline directives have been undermined.
Similar instructions issued ahead of the 2025 budget, which barred new projects unless tied to the completion of ongoing ones, were also widely ignored.
Economic experts argue that late budget presentations and rushed legislative approvals create fertile ground for such inconsistencies.
The President of the Nigerian Economic Society, Professor Adeola Adenikinju, has warned that compressed timelines prevent proper scrutiny by lawmakers and stakeholders, weakening fiscal predictability.
Development economist and CSA Advisory chief executive, Dr Aliyu Ilias, went further, describing Nigeria’s budget process as suffering from “deep fiscal discipline problems.”
He argued that repeated violations of budget rules suggest systemic weaknesses rather than isolated oversights.
Ilias also faulted the National Assembly, insisting that effective oversight should prevent the proliferation of fresh projects in defiance of government policy.
According to him, tolerating such practices undermines accountability and perpetuates inefficiencies.
Implications for Fiscal Stability
With debt servicing already consuming a significant share of federal revenues, analysts warn that the expansion of 2026 budget new projects could further strain public finances if not matched by realistic revenue projections and strict implementation controls.
As the National Assembly commences budget defence sessions, attention is expected to focus on how these new project entries slipped through and whether lawmakers will enforce compliance with existing fiscal rules.
For many observers, the unfolding budget debate will serve as a critical test of the Tinubu administration’s commitment to fiscal discipline, transparency and efficient public spending at a time when Nigerians are demanding tangible economic relief and value for money.
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