New Projects Resurface Despite FG’s 2026 Budget Ban
By TOSAN OYAKHILOME-AKAHOMEN
Contradictions at the Heart of the 2026 Budget
THE 2026 federal budget has exposed a widening gap between policy directives and fiscal execution, as MDAs introduced new capital projects worth ₦3.50 trillion despite a formal government freeze.
A December 2025 Budget Call Circular directed MDAs to roll over most of their 2025 capital spending and halt new initiatives, citing revenue constraints and the need to complete abandoned and ongoing projects.
Yet an examination of the Appropriation Bill shows that new projects account for over 15 per cent of the proposed capital budget, raising questions about compliance and oversight.
Where the Money Is Going
While MDAs contributed ₦844.49 billion in new projects, Service-Wide Votes dominate the picture with ₦2.66 trillion spread across 18 new line items.
Nearly half of this amount is tied to settling old contractor liabilities, while hundreds of billions more are earmarked for financing schemes, defence obligations and centralised logistics.
Critics argue that such allocations, though sometimes justified, blur the line between unavoidable obligations and fresh fiscal commitments introduced under the guise of service-wide spending.
MDAs and the Return of New Projects
At the MDA level, the scale of new projects varies widely. The Budget Office’s ₦375 billion power sector loan dwarfs most others, while the Ministry of Transport’s ₦210.53 billion reflects renewed momentum behind rail and mass transit expansion.
Meanwhile, social-sector agencies and river basin authorities have introduced dozens of smaller projects, including solar installations, rural roads, water schemes and youth empowerment initiatives—projects critics say resemble constituency insertions rather than strategic capital priorities.
Weak Oversight, Familiar Outcomes
Economists say the recurring breach of budget rules reflects systemic weaknesses. Professor Adeola Adenikinju blames late submissions and rushed approvals, while Dr. Aliyu Ilias argues that both the executive and legislature have failed to enforce fiscal discipline.
Without stricter gatekeeping by the Budget Office and more rigorous scrutiny by lawmakers, analysts warn that Nigeria’s budget process risks becoming increasingly unpredictable and inefficient.
