Despite a Federal Government directive halting new project approvals in the 2026 budget, Ministries, Departments, and Agencies (MDAs) have reportedly introduced about ₦3.50 trillion ($3.5bn) in fresh capital and programme items, an analysis of the Appropriation Bill has revealed.
According to the analysis, published on Sunday, new project lines amounting to at least ₦844.49 billion were included at the MDA level, while an additional ₦2.66 trillion emerged through Service-Wide Votes, bringing the total unplanned expenditure to approximately ₦3.50 trillion.
The unplanned allocation represents 15.09 per cent of the proposed ₦23.21 trillion capital budget for the fiscal year.
Budget Freeze Directive and Context
In December 2025, the Federal Ministry of Budget and Economic Planning issued an Abridged Budget Call Circular, instructing MDAs to roll over 70 per cent of their 2025 capital allocations into 2026 and avoid introducing new projects. The circular emphasised that only ongoing priority projects in security, infrastructure, agriculture, and social services should continue.
Despite the directive, no fewer than 82 MDAs reportedly submitted at least one new capital or programme item, totalling over 400 new project lines, ranging from large-scale infrastructure investments to constituency-level interventions.
Service-Wide Votes Dominate New Allocations
A significant portion of the fresh project portfolio was in Service-Wide Votes, which fund centrally managed expenditures outside normal ministry allocations. Key allocations included:
₦1.70 trillion for outstanding contractors’ liabilities from 2024
₦300 billion for development finance initiatives, including the Nigeria Development Finance Corporation and the Economic Transformation Finance Programme
₦110.31 billion for the Nigerian Air Force to settle helicopter procurement liabilities
₦30 billion for a special operations fund for the Department of State Services
₦283.85 billion for presidential air fleet logistics and the National Forest Guard
At the ministry level, the Budget Office of the Federation recorded the largest new project allocation of ₦375 billion for a tied loan to support the Power Sector Recovery Operation, representing 44.41 per cent of all MDA-level new projects.
Other notable allocations included:
Federal Ministry of Transport – ₦210.53 billion for consultancy services on rail corridors and six national bus terminals
National Library of Nigeria – ₦24 billion for renovation of zonal facilities
National Blood Service Commission – ₦15 billion for a national blood centre and office rehabilitation
Sokoto Rima River Basin Development Authority – ₦9.14 billion for solar mini-grids, rural roads, and water supply systems.
Reactions and Implications
Economists and budget experts expressed concerns over fiscal discipline and adherence to executive directives.
Professor Adeola Adenikinju, President of the Nigerian Economic Society, said the late budget presentation to the National Assembly undermines effective scrutiny, allowing unplanned provisions to slip in.
Similarly, Dr. Aliyu Ilias, Chief Executive of CSA Advisory, warned that the persistent addition of new project lines “reflects poor fiscal discipline” and highlights a weak oversight role for the legislature.
Analysts noted that the introduction of new projects against the government’s directive could complicate efforts to tighten fiscal space, improve budget credibility, and complete existing infrastructure programmes. They called for greater transparency, stronger oversight, and strict enforcement of budget guidelines to improve Nigeria’s fiscal management.