2026 Budget: MDAs Insert ₦3.5tn New Projects Despite Roll-Over Directive

Fresh findings from an analysis of the 2026 Appropriation Bill indicate that the Federal Government has proposed ₦3.50 trillion for new projects, notwithstanding earlier instructions to Ministries, Departments and Agencies (MDAs) to limit fresh capital spending.

The directive, issued through the 2026 Abridged Budget Call Circular, required MDAs to roll over 70 per cent of their 2025 capital allocations into the 2026 fiscal year, as part of efforts to complete ongoing projects and curb spending amid weak revenue performance.

Contrary to this guideline, budget figures show ₦844.49bn in new project allocations across MDAs, with the figure swelling to ₦3.50tn after including Service Wide Votes.

Out of the proposed ₦23.21tn capital expenditure for 2026, the new projects account for 15.09 per cent, raising concerns about adherence to fiscal discipline.

A breakdown shows that ₦2.66tn of the new allocations are embedded in Service Wide Votes, reflecting a heavy concentration of fresh spending outside regular ministerial capital budgets.

The single largest allocation is ₦1.70tn for outstanding contractors’ liabilities from 2024, which alone makes up nearly half of the total new project provisions.

Other notable Service Wide Vote items include ₦300bn for three federal financing programmes, ₦110.31bn to settle outstanding obligations on military helicopters for the Nigerian Air Force, and ₦283.85bn for presidential air fleet logistics and related operations.

At the ministerial level, at least 82 MDAs were found to have introduced new capital or programme items, with over 400 fresh project lines captured in the budget.

The Budget Office of the Federation tops the list with ₦375bn earmarked for a power sector recovery financing arrangement, while the Federal Ministry of Transport proposed ₦210.53bn for rail consultancy services and the construction of bus terminals across the six geopolitical zones.