Ministries, Departments and Agencies (MDAs) have introduced at least ₦3.50 trillion in new capital projects in the 2026 federal budget even after the Federal Government directed a freeze on fresh capital additions in budget submissions, an analysis of the 2026 Appropriation Bill reveals. The new allocations challenge fiscal discipline guidelines issued for the upcoming fiscal year.
Budget data show that fresh capital project lines at the MDA level amount to ₦844.49 billion, with the total rising to an estimated ₦3.50 trillion when Service‑Wide Votes are included — equivalent to 15.09 per cent of the proposed ₦23.21 trillion capital budget for 2026.
In December 2025, the Federal Ministry of Budget and Economic Planning issued a 2026 Abridged Budget Call Circular directing all MDAs to roll over 70 per cent of their 2025 capital budgets into the next fiscal year and to avoid introducing new capital projects, as part of efforts to prioritise completion of existing projects and contain expenditure amid constrained revenues.
The circular emphasised alignment with national priorities such as security, economy and infrastructure.
Despite the guideline, the appropriation bill submitted to the National Assembly contains more than 400 new project items across at least 82 MDAs, ranging from multibillion‑naira infrastructure initiatives to smaller constituency‑level interventions such as boreholes, equipment supplies and training programmes.
A significant proportion of the new allocations — ₦2.66 trillion — fall under Service‑Wide Votes, which are separate from conventional ministerial capital lines but remain part of total capital expenditure.
These include ₦1.70 trillion provision for outstanding 2024 contractor liabilities, representing nearly half of the new project total; three ₦100 billion entries for development finance programmes; and funding for Defence, Federal DSS and presidential logistics.
Among MDAs, the Budget Office of the Federation recorded the largest new project allocation at ₦375 billion, earmarked for a tied loan line supporting the Power Sector Recovery Operation.
Other major new budget items include ₦210.53 billion for the Federal Ministry of Transport on railway and national bus terminal projects, ₦24 billion for National Library renovations, ₦15 billion for the National Blood Service Commission, and ₦9.14 billion for Sokoto Rima River Basin Development Authority initiatives.
Economists have expressed concern that the presence of substantial new project allocations undermines the government’s fiscal discipline directive and complicates efforts to focus limited resources on completing ongoing work rather than expanding the capital budget.
Observers note that such practices may reflect weak enforcement by both the Budget Office of the Federation and the National Assembly, which retains authority to review and amend budget proposals.
The inclusion of significant new project spending in the 2026 budget also coincides with broader debates over fiscal management, budget delays and revenue performance, including criticism from the African Democratic Congress (ADC) and other stakeholders who describe the budget framework as a potential debt risk if not matched by realistic revenue measures.
As the National Assembly reviews the 2026 Appropriation Bill, questions remain about whether lawmakers will uphold or modify the executive’s new project insertions, with implications for fiscal discipline, capital prioritisation and public service delivery.
