Despite earlier directives to freeze new capital projects, Ministries, Departments and Agencies have inserted at least N3.5tn worth of fresh projects into the proposed 2026 budget, an analysis has shown.
This development contradicts budget preparation guidelines issued by the Federal Government, which instructed MDAs to roll over 70 per cent of their 2025 capital allocation into 2026 and avoid introducing new projects in order to prioritise completion of ongoing initiatives.
Figures from the 2026 Appropriation Bill indicate that new projects at the MDA level amount to N844.49bn, while the figure rises sharply to N3.5tn when Service Wide Votes are included. Against the proposed capital budget of N23.21tn, the new projects represent 15.09 per cent of total capital expenditure.
Service Wide Votes account for the bulk of the new allocations, totalling N2.66tn and reflecting the concentration of large-ticket items outside conventional ministerial capital lines. The single largest item is N1.7tn provided for outstanding contractors’ liabilities from 2024, which alone accounts for nearly half of the total value of new projects.
In December 2025, the Federal Government had directed MDAs to carry over 70 per cent of their 2025 capital budgets into 2026, citing weak revenue performance and the need to contain spending pressures. The directive, contained in the 2026 Abridged Budget Call Circular issued by the Ministry of Budget and Economic Planning, emphasised alignment with priority sectors such as national security, infrastructure, health, education, agriculture, power and social safety nets.
However, it was observed that at least 82 MDAs have introduced fresh capital or programme items in the proposed budget. In total, more than 400 new project lines were identified, ranging from large infrastructure and health investments to smaller constituency-level interventions such as boreholes, training programmes and equipment procurement.
Further review of the Service Wide Votes revealed 18 new project entries tied largely to financing schemes, security provisions and central government initiatives. These include N300bn spread across three funding programmes—the Nigeria Development Finance Corporation, the Economic Transformation Finance Programme and the Nigeria Growth Investment Fund—as well as N283.85bn for presidential air fleet logistics and the operation of the National Forest Guard.
Among MDAs, the Budget Office of the Federation recorded the largest new project allocation of N375bn for additional financing under the Power Sector Recovery Operation. The Federal Ministry of Transport followed with N210.53bn for consultancy services and construction of transport infrastructure across the six geopolitical zones.
Other notable entries include N24bn for the renovation of the National Library of Nigeria nationwide, N15bn for facilities under the National Blood Service Commission, and N9.14bn for various solar, water and rural infrastructure projects by the Sokoto Rima River Basin Development Authority.
Economists have raised concerns over the continued inclusion of new projects despite repeated restrictions. The President of the Nigerian Economic Society, Professor Adeola Adenikinju, blamed late budget presentation for poor legislative scrutiny, while development economist Dr Aliyu Ilias described the situation as a reflection of persistent fiscal discipline failures by both the Executive and the National Assembly.
