FG introduces N3.5tn new projects in the 2026 budget despite directives to roll over capital spending, raising fiscal discipline concerns
The Federal Government has included at least N3.50tn in fresh capital projects in the proposed 2026 budget, despite earlier directives instructing Ministries, Departments, and Agencies to roll over 70 per cent of their 2025 capital allocations, according to an analysis by The PUNCH in Abuja on Monday, January 13, 2026.
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Figures extracted from the 2026 Appropriation Bill show that new project entries across MDAs amount to N844.49bn, while Service Wide Votes push the total value of new projects to N3.50tn.
Against the proposed capital expenditure of N23.21tn for 2026, the N3.50tn new projects account for 15.09 per cent of total capital spending.
The bulk of the N3.5tn new projects is embedded within Service Wide Votes, which total N2.66tn and concentrate some of the largest single allocations outside ministerial capital lines.
In December 2025, the Federal Government directed MDAs to carry forward 70 per cent of their 2025 capital budgets into 2026 to prioritise project completion and manage weak revenue conditions.
That directive was contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning and circulated to ministers, service chiefs, and heads of agencies.
The circular warned MDAs against introducing fresh capital projects and stressed that all expenditure would face strict scrutiny to ensure value for money.
However, The PUNCH observed that at least 82 MDAs have one or more new capital or programme items in the proposed budget, with over 400 fresh project lines listed.
These projects range from large-scale infrastructure and health investments to smaller constituency-level interventions such as boreholes, training schemes, and equipment supply.
Within the Service Wide Votes, the largest single allocation is N1.70tn for outstanding contractors’ liabilities from 2024, representing about 48.55 per cent of total new projects.
Other notable entries include N300bn for three financing vehicles under the Nigeria Development Finance Corporation, the Economic Transformation Finance Programme, and the Nigeria Growth Investment Fund.
Additional provisions cover security and logistics, including N110.31bn for the Nigerian Air Force helicopter obligations and N283.85bn for presidential air fleet logistics and the National Forest Guard.
At the MDA level, the Budget Office of the Federation accounts for the largest new project allocation at N375bn, tied to additional financing for the Power Sector Recovery Operation.
The Federal Ministry of Transport headquarters follows with N210.53bn for rail consultancy services and construction of bus terminals across the six geopolitical zones.
Other high-value MDAs include the National Library of Nigeria, the National Blood Service Commission, and the Sokoto Rima River Basin Development Authority.
Economists have raised concerns over the growing scale of fresh projects amid repeated government warnings against budget expansion.
The President of the Nigerian Economic Society, Professor Adeola Adenikinju, said late budget presentation limits legislative scrutiny and weakens fiscal predictability.
A development economist and Chief Executive of CSA Advisory, Dr Aliyu Ilias, described the trend as a symptom of persistent fiscal discipline problems.
Dr Ilias also criticised the National Assembly for failing to exercise effective oversight, warning that tolerance of inefficiencies undermines budget credibility.
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Despite similar restrictions in previous budget cycles, MDAs have continued to introduce new projects, highlighting ongoing tension between fiscal policy directives and budget implementation.
David Okere is a journalist and contributor to Freelanews.com, covering business, governance, public affairs, and human-interest stories with a commitment to accuracy, balance, and public interest reporting.
