FG faces criticism as poverty spending falls below 1%

FG poverty spending in the 2026 budget totals N206.5bn, less than one per cent of proposed federal expenditure, raising policy concerns

The Federal Government of Nigeria, in Abuja, on Sunday, January 2026, proposed to spend about N206.50bn on poverty alleviation-related projects in the 2026 budget, an amount representing far below one per cent of the total N58.47tn expenditure submitted to the National Assembly.

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A review of project-level data from the 2026 Appropriation Bill shows that all poverty-tagged items across ministries, departments and agencies, alongside the Service Wide Vote, amount to roughly 0.35 per cent of total proposed federal spending.

When measured against the capital budget of N23.21tn, the allocation represents about 0.89 per cent, highlighting the limited fiscal weight given to poverty reduction initiatives.

The bulk of the FG poverty spending comes from the Service Wide Vote, where two recurrent provisions under the National Poverty Reduction with Growth Strategy dominate the figures.

These include N100bn for the FGN commitment to the strategy, including National Social Investment Programme upscaling, and another N100bn as a recurrent NPRGS allocation, together accounting for more than 96 per cent of the entire poverty envelope.

Without these central provisions, all MDAs combined account for only N6.50bn in poverty-related projects for 2026.

Among MDAs, the Federal Co-operative College, Ibadan, recorded the largest allocation of N2.87bn for the provision of tricycles and motorcycles to selected communities nationwide, accounting for about 44 per cent of all MDA-based poverty spending.

Other notable allocations include N840m for the Centre for Management Development to supply empowerment items to small businesses, N700m for technology-based empowerment projects under the Board for Technology Business Incubator Centre in Abuja, and N507.5m for grain distribution by Nigeria Stored Products Research in Ilorin.

Most interventions focus on food distribution, supply of transport or empowerment tools, and skills acquisition for women, youths and small enterprises, with smaller amounts directed towards studies, symposiums and administrative coordination.

The Federal Ministry of Humanitarian Affairs and Poverty Alleviation, however, recorded a sharp budget increase from N7.10bn in 2025 to N23.56bn in 2026, driven largely by capital spending.

Despite the increase, several capital items under the ministry, including office furniture, equipment procurement, retreats and international engagements, were not directly linked to poverty alleviation.

Independent assessments paint a stark picture of the challenge ahead.

The World Bank has said only 44 per cent of benefits from government-funded safety-net schemes reach poor Nigerians, describing the system as inefficient.

PwC, in its Nigeria Economic Outlook 2026, projected that the national poverty rate could rise to 62 per cent by 2026, with about 141 million people living below the poverty line, warning that weak income growth and persistent inflation remain a powerful drag on living standards.

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Both institutions cautioned that without targeted job creation, productivity gains and effective social protection, poverty reduction efforts would remain fragile, with wider implications for economic stability and public finances.

Peculiar Adirika