A recent analysis of the 2026 Appropriation Bill has revealed a significant breach of fiscal guidelines. Despite an explicit order for government agencies to prioritize ongoing work, at least ₦3.50tn has been allocated to brand-new projects. This occurs even though the Federal Ministry of Budget and Economic Planning directed a 70% rollover of 2025 capital allocations to conserve revenue.
Where the ₦3.50tn is Being Spent
The analysis shows that while individual Ministries, Departments, and Agencies (MDAs) introduced ₦844.49bn in new projects, the bulk of the fresh spending is hidden within Service-Wide Votes, totaling ₦2.66tn.
Major new allocations include:
- Contractor Liabilities: ₦1.70tn to settle outstanding 2024 debts.
- Special Funding: ₦300bn for national investment and growth funds.
- Security & Logistics: ₦110bn for military aircraft and ₦283bn for presidential fleet management.
Top Agencies Introducing New Projects
Despite the “no new project” rule, over 82 MDAs successfully inserted fresh items into the budget. The top spenders in this category are:
- Budget Office of the Federation: ₦375bn (largely for power sector loans).
- Ministry of Transport: ₦210.53bn (for new rail consultancy and bus terminals).
- National Library of Nigeria: ₦24bn (for nationwide structural upgrades).
Concerns Over Fiscal Discipline
Economic experts are sounding the alarm over what they describe as a “breakdown of fiscal discipline.” Professor Adeola Adenikinju, President of the Nigerian Economic Society, noted that late budget submissions often prevent the National Assembly from properly scrutinizing these new entries.
Furthermore, Dr. Aliyu Ilias of CSA Advisory criticized the legislature for allowing these projects to pass. He suggested that the repeated inclusion of new projects despite official bans indicates a systemic failure in government oversight.
