Despite a Federal Government directive freezing the introduction of new projects in the 2026 budget, Ministries, Departments and Agencies (MDAs) have reportedly inserted **about ₦3.50 trillion ($3.5tn) in new capital and programme items into the proposed national spending plan, an analysis of the Appropriation Bill has revealed.
The analysis, published on January 12, 2026, shows that new project lines amounting to at least ₦844.49 billion were included at the MDA level, while a further ₦2.66 trillion emerged through Service-Wide Votes, bringing the total value of unplanned expenditures to roughly ₦3.50tn.
This figure represents about 15.09 per cent of the total proposed capital budget of ₦23.21tn for the fiscal year.
Budget Freeze Directive and Context
In December 2025, the Federal Ministry of Budget and Economic Planning issued an Abridged Budget Call Circular ordering all MDAs to roll over 70 per cent of their existing capital allocations from the 2025 fiscal year into 2026 and to avoid introducing fresh capital projects, as part of efforts to tame fiscal pressures amid weak revenue performance.
The circular emphasised that only ongoing priority projects aligned with the government’s development focus — including security, infrastructure, agriculture and social services — should be continued.
Despite this directive, no fewer than 82 MDAs appear to have introduced at least one new capital or programme item in their budget submissions, totalling over 400 fresh project lines ranging from large infrastructure investments to smaller, constituency-level interventions.
Service-Wide Votes Dominate New Allocations
A significant portion of the new project portfolio resides in Service-Wide Votes — budget lines that cover centrally managed expenditures outside typical ministry capital allocations. Among these:
₦1.70tn was earmarked for outstanding contractors’ liabilities from 2024 (nearly half of all new projects).
₦300bn was allocated across three major lines for development finance initiatives, including the Nigeria Development Finance Corporation and the Economic Transformation Finance Programme.
Capital injections also included ₦20bn for INFRACO, ₦30bn for a special operations fund for the Department of State Services, and ₦110.31bn for the Nigerian Air Force to settle helicopter procurement liabilities.
A further ₦283.85bn was earmarked for presidential air fleet logistics and the National Forest Guard, among other provisions.
Top MDAs with New Project Entries
At the ministry level, the Budget Office of the Federation recorded the largest new project allocation — about ₦375bn — for a tied loan line to support the Power Sector Recovery Operation.
This single item alone accounted for roughly 44.41 per cent of the total new projects introduced directly by MDAs.
Other notable allocations included:
• Federal Ministry of Transport – ₦210.53bn for consultancy services on major rail corridors and construction of six national bus terminals across geopolitical zones.
• National Library of Nigeria – ₦24bn for renovation across its zonal facilities.
• National Blood Service Commission – ₦15bn for a national blood centre and office rehabilitation.
• Sokoto Rima River Basin Development Authority – ₦9.14bn for solar mini-grids, rural road construction and water supply systems.
Reactions and Analysis
Economists and budget experts told sources that the development raises concerns about fiscal discipline and adherence to executive directives.
Professor Adeola Adenikinju, National President of the Nigerian Economic Society, argued that late presentation of the budget to the National Assembly undermines effective scrutiny, making it easier for new provisions to slip in without adequate justification.
Similarly, Dr. Aliyu Ilias, Chief Executive of CSA Advisory, warned that persistent inclusion of unplanned project lines “reflects poor fiscal discipline” and pointed to a weak oversight role for the National Assembly.
Implications for Fiscal Policy
The emergence of these new project items — against a backdrop of a deliberate effort to prioritise ongoing over new spending — may complicate the government’s objectives of tightening fiscal space, improving budget credibility, and completing existing infrastructure programmes.
Analysts say greater transparency, stronger oversight, and strict enforcement of budget call guidelines will be key to reforming Nigeria’s fiscal process moving forward.