Ministries, Departments and Agencies (MDAs) have inserted N3.50 trillion worth of new projects into the 2026 Appropriation Bill despite explicit Federal Government directives to prioritise the carry‑over of existing capital allocations and avoid fresh capital commitments, an analysis of the proposed budget reveals.
The development exposes tensions in fiscal discipline as Nigeria prepares for the next fiscal year.
The subdivision of these figures in the draft budget shows that new project entries at the MDA level total N844.49 billion, while Service‑Wide Votes account for an additional N2.66 trillion, bringing the combined total of new capital provisions to N3.50 trillion in the proposed ₦23.21 trillion capital budget for 2026 — equivalent to about 15.09 per cent of the total capital outlay.
The emergence of substantial new project lines stands in contrast to guidance issued in December 2025 by the Federal Ministry of Budget and Economic Planning, which directed MDAs to roll over 70 per cent of their 2025 capital allocations into the 2026 fiscal year and avoid introducing new projects as part of efforts to prioritise completion of ongoing work and contain fiscal pressures from constrained revenues.
According to the analysis of the budget bill, over 400 fresh project lines have been included across various MDAs. These range from large infrastructure and health investments to smaller constituency‑level interventions such as boreholes, training schemes and supplies.
Under Service‑Wide Votes, the largest single allocation is N1.70 trillion set aside for 2024 outstanding contractors’ liabilities, accounting for nearly half of all new project provisions.
Other significant entries include three N100 billion provisions for the Nigeria Development Finance Corporation, the Economic Transformation Finance Programme and the Nigeria Growth Investment Fund under Service‑Wide Votes.
Analysis also shows capitalisation lines such as N110.31 billion for the Nigerian Air Force towards obligations on T‑129 ATAK and Mi‑35 helicopters, and N283.85 billion for presidential air fleet logistics and National Forest Guard operations.
At the MDA level, the Budget Office of the Federation has one of the largest new project allocations at N375 billion for the Power Sector Recovery Operation additional financing, while the Federal Ministry of Transport headquarters has N210.53 billion for transport infrastructure projects.
Experts say the inclusion of fresh projects despite clear directives raises questions about fiscal discipline and budget preparation processes, particularly given the backdrop of weak revenue performance and the government’s stated priority to complete ongoing projects before initiating new ones.
Economists also point to the late presentation of the 2026 budget as an impediment to thorough parliamentary scrutiny.
The unfolding budget review is likely to draw attention from policymakers, civil society groups and economic observers concerned about budget consistency, resource prioritisation and adherence to fiscal guidelines as the National Assembly continues deliberations on the appropriation bill.
