Federal Agencies Allocate N400bn for Non-Essential Projects in 2026 Budget

An analysis of the 2026 Federal Appropriation Act has revealed that nearly N400 billion has been earmarked across approximately 78 Ministries, Departments, and Agencies (MDAs) for non-essential and local community projects.

The allocations cover items such as the construction and renovation of traditional rulers’ palaces, community halls, mosques, mini-stadia, and village market stalls, as well as the procurement of tricycles, motorcycles, and grains.

Findings show that several specialized technical and research institutes have budget line items completely outside their primary statutory mandates. For instance, the National Building and Road Research Institute in Lagos has billions assigned for village halls, international markets, and palace refurbishments across multiple states. Similarly, the National Productivity Centre’s budget includes funding for local palaces, abattoirs, and support for regional musicians, while the National Mathematical Centre is set to finance a sociology department building at Ahmadu Bello University.

Economic experts and policy analysts have criticized the proliferation of these low-impact items, arguing that they divert scarce public resources away from critical national infrastructure, such as healthcare, power, education, and roads. Critics also point out that many of these projects fall under the constitutional responsibilities of state and local governments rather than federal bodies.

Economic analysts attribute the practice to weak legislative oversight and budget padding, where lawmakers insert constituency-focused line items into agency budgets prior to presidential assent. To address these systemic fiscal distortions, experts are calling for a return to zero-based budgeting to ensure every allocation is thoroughly justified before approval.