Abuja, Jan. 11, 2026 (Naija247news) — At least ₦3.50 trillion worth of new capital projects have been introduced into Nigeria’s proposed 2026 federal budget, despite earlier directives instructing Ministries, Departments and Agencies (MDAs) to roll over 70 per cent of their 2025 capital allocations and avoid fresh projects, an analysis has revealed.
Figures extracted from the 2026 Appropriation Bill show that ₦844.49 billion in new projects are embedded within MDA capital votes, while Service-Wide Votes (SWVs) account for an additional ₦2.66 trillion, bringing the total value of new project entries to ₦3.50 trillion.
Against the proposed ₦23.21 trillion capital budget for 2026, the new project portfolio represents 15.09 per cent of total capital expenditure.
Directive Ignored
In December 2025, the Federal Ministry of Budget and Economic Planning issued an abridged Budget Call Circular directing MDAs to carry forward 70 per cent of their 2025 capital budget into 2026 and prioritise completion of ongoing projects amid weak revenues and mounting fiscal pressures.
The circular explicitly warned against introducing new projects, stating that only essential and priority-aligned expenditures would be considered.
However, a review of the budget documents shows that no fewer than 82 MDAs included at least one new capital or programme item, with over 400 fresh project lines appearing across the budget.
Service-Wide Votes Dominate
The bulk of new projects are concentrated within Service-Wide Votes, which alone account for ₦2.66 trillion, signalling that the largest fiscal expansions are occurring outside conventional ministerial capital frameworks.
The single largest item is ₦1.70 trillion allocated for 2024 outstanding contractors’ liabilities, representing 48.55 per cent of all new project provisions.
Other major SWV allocations include:
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₦300bn combined for three financing vehicles — Nigeria Development Finance Corporation, Economic Transformation Finance Programme, and Nigeria Growth Investment Fund
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₦283.85bn for Presidential Air Fleet logistics and National Forest Guard operations
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₦110.31bn for Nigerian Air Force helicopter obligations
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₦30bn DSS special operations fund
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₦20bn capitalisation of INFRACO
MDAs with Highest New Project Entries
At the MDA level, the Budget Office of the Federation tops the list with ₦375bn earmarked for additional financing under the Power Sector Recovery Operation, accounting for 44.41 per cent of all MDA-level new projects.
Other major entries include:Federal Ministry of Transport — ₦210.53bn for rail consultancy services and construction of six national bus terminals
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National Library of Nigeria — ₦24bn for structural renovation across six geopolitical zones
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National Blood Service Commission — ₦15bn for a national blood reserve and rehabilitation of state offices
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Sokoto Rima River Basin Development Authority — ₦9.14bn for solar, irrigation, roads and empowerment projects
Pattern of Budget Discipline Erosion
This is not the first time budget guidelines have been disregarded. Similar restrictions were issued ahead of the 2025 budget, with clear instructions that new projects would not be admitted unless tied to completion of ongoing initiatives.
Economic experts say the repeated violations point to systemic weaknesses.
Professor Adeola Adenikinju, President of the Nigerian Economic Society, warned that late budget submissions undermine legislative scrutiny, while development economist Dr Aliyu Ilias described the situation as a “fiscal discipline problem,” accusing both the executive and National Assembly of tolerating inefficiencies.
Bigger Picture
Despite repeated policy statements prioritising fiscal discipline, the scale and spread of new projects in the 2026 budget raise fresh concerns about budget credibility, execution capacity, and value for money, especially in a period of constrained revenues and rising debt service obligations.
Babatunde Akinsola ✔
Babatunde Akinsola is aNaija247news' Southwest editor. He's based in Lagos and writes on the Yoruba Nation political issues, news and investigative reports
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