Politics

2026 Budget Twist as MDAs Add N3.5tn in New Projects

Despite a directive by the Federal Government placing a freeze on the introduction of new capital projects, several Ministries, Departments and Agencies (MDAs) have reportedly inserted about N3.5 trillion worth of fresh projects into the proposed 2026 national budget.

Findings show that the newly introduced projects cut across key sectors such as road construction and rehabilitation, solar power installations, water supply schemes, and the procurement of equipment for various national services. These projects are spread across different states of the federation and were added at various stages of the budget preparation process.

The development has raised concerns among budget analysts and lawmakers, who argue that the move contradicts the government’s stated commitment to fiscal discipline and budget consolidation. The federal directive was aimed at completing ongoing projects and reducing the burden of abandoned or duplicated initiatives, many of which have strained public finances over the years.

Sources familiar with the budget process disclosed that some MDAs justified the inclusion of the new projects by citing urgent national needs, constituency pressures and infrastructure gaps. However, critics insist that the practice undermines transparency and makes effective budget implementation more difficult.

There are also fears that the additional N3.5 trillion in projects could further widen the budget deficit, increase borrowing and place more pressure on the country’s already stretched revenue base. Lawmakers are expected to scrutinise the budget closely during the appropriation process to determine whether the new projects align with national priorities and existing fiscal policies.

As deliberations continue, stakeholders are calling on the Federal Government to enforce stricter compliance with budget guidelines and ensure that public funds are directed towards completing existing projects rather than expanding commitments the country may struggle to fund.

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