Nigeria’s Federal Government plans to spend ₦6.12bn on judgment debts in the 2026 budget, with the Ministry of Works accounting for the largest share
The Federal Government has proposed a total of ₦6.12bn for the settlement of judgment debts and related liabilities across three ministries in the 2026 budget, according to a review of the appropriation bill.
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An analysis of the budget figures shows that the allocation represents a slight increase from the ₦6.05bn proposed for judgment debts in the 2025 budget—an annual rise of about ₦75.06m.
The increase suggests that outstanding court judgments and legal liabilities remain largely unresolved, despite reduced provisions for some ministries.
The Federal Ministry of Works accounts for the largest share of the proposed allocation. In the 2026 budget, the ministry is set to receive a combined ₦5.39bn for judgment debts.
This includes ₦1.4bn listed broadly as judgment debt and an additional ₦3.99bn linked to a specific legal matter identified as Suit No. LD/7036GCM/2023.
By comparison, the Ministry of Works was allocated ₦5bn for judgment debts in the 2025 budget.
The increase of about ₦390m in 2026 is largely attributed to the inclusion of the specific court case, underscoring the growing financial impact of legal disputes tied to major infrastructure projects.
The Federal Ministry of Education headquarters is proposed to receive ₦700m in 2026 for outstanding capital liabilities and judgment debts.
This marks a reduction from the ₦1bn allocated in the 2025 budget, suggesting fewer unresolved claims linked to education-related projects.
Similarly, the Federal Ministry of Health and Social Welfare headquarters has the smallest allocation among the three ministries, with ₦34.86m proposed for 2026, down from ₦49.8m in the previous year.
The decline reflects a lower provision for court-related liabilities compared with 2025.
Despite reductions in the education and health ministries’ allocations, the overall increase in judgment debt spending for 2026 is driven by higher provisions under the Ministry of Works.
Budget data indicate that judgment debts remain heavily concentrated in infrastructure-related ministries, where contractual disputes, compensation claims and concession-related litigation are more common.
In October 2025, the Minister of Works, Dave Umahi, revealed that the Federal Government’s plan to concession the Lagos–Ibadan Expressway had been stalled by an ongoing court case.
Speaking to journalists after inspecting sections of the Sagamu–Ijebu Ode–Benin Expressway and the Lagos–Ibadan Expressway, Umahi said the legal dispute had delayed plans to hand over maintenance of the road to private operators.
“The Federal Government has always been willing to ensure CCTV is installed on the road. It is our plan to concession the Lagos–Ibadan road, but someone took us to court,” Umahi said.
He explained that the dispute stems from a failed public-private partnership arrangement under a previous administration, adding that continued litigation could negatively affect road users.
“We are, however, telling the court that once an order is made, it is the citizens who will suffer,” the minister said. “So we are saying that the court should not make any order that will impact negatively on the welfare of the people.”
The controversy dates back to 2009, when the Federal Government awarded a 25-year concession to Bi-Courtney Highway Services Limited to reconstruct, expand and manage the Lagos–Ibadan Expressway under a build-operate-transfer model.
The agreement, ratified in 2011, allowed the firm to recover its investment through tolling.
However, the concession was terminated in 2012 over alleged non-performance. Bi-Courtney subsequently challenged the termination in court, accusing the government of breaching due process by awarding a fresh concession to Motorway Assets Limited without following established procedures.
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The lingering dispute continues to weigh on government finances, with its impact reflected in the growing judgment debt provisions under the Ministry of Works in the 2026 budget.
