2026 Budget Shock: MDAs Add N3.5tn in New Projects Despite Federal Government Freeze
In a surprising turn, Nigeria’s 2026 budget reveals that Ministries, Departments, and Agencies (MDAs) have introduced at least N3.5 trillion in new projects, defying earlier government instructions to limit fresh allocations. Analysis of the 2026 Appropriation Bill shows that N844.49 billion of this total comes directly from MDAs, with the remainder concentrated in Service Wide Votes, which cover central programmes and liabilities. The new projects represent 15.09 per cent of the proposed N23.21 trillion capital budget, signaling a significant deviation from government spending plans.
The Federal Government had previously directed MDAs to roll over 70 per cent of their 2025 capital budgets into 2026, prioritizing the completion of existing projects over new initiatives. The 2026 Abridged Budget Call Circular emphasized that all new expenditures must align with national priorities such as security, infrastructure, health, education, and youth empowerment. However, the analysis shows that 82 MDAs have at least one new capital or programme item, with over 400 fresh project lines ranging from multibillion-naira infrastructure investments to smaller constituency-level initiatives.
Among the largest allocations, the Service Wide Votes feature a staggering N1.7 trillion for outstanding contractor liabilities, nearly half of the total new project sum. Other notable entries include N300 billion for development finance institutions and special allocations for the military, presidential air fleet, and the National Forest Guard. At the MDA level, the Budget Office of the Federation leads with N375 billion for Power Sector Recovery financing, followed by the Federal Ministry of Transport with N210.53 billion for rail and bus terminal projects across the country.
Experts have raised alarms over the implications of these unapproved new projects. Professor Adeola Adenikinju of the Nigerian Economic Society noted that late budget presentations hinder proper legislative scrutiny, while development economist Dr. Aliyu Ilias warned of fiscal discipline challenges, suggesting that the practice of introducing new allocations may be intentional and unchecked. Critics argue that such budgetary indiscipline could undermine the government’s stated goal of completing ongoing projects efficiently.
Despite repeated government directives in previous years to prevent the addition of new projects, MDAs continue to flout guidelines, highlighting gaps in oversight from both the Budget Office of the Federation and the National Assembly. With billions already committed to new allocations before proper scrutiny, analysts caution that Nigeria’s fiscal management risks further disorganization, potentially compromising transparency, accountability, and value for taxpayers’ money.
source: punch