Key points
- About 78 federal MDAs allocated nearly ₦400 billion for community-related projects in the 2026 budget.
- More than half of the allocation is for non-developmental projects, including motorcycles, tricycles, grains and community support initiatives.
- Analysts criticised the spending, saying it diverts resources from critical sectors such as healthcare, education, power and security.
- Several MDAs were found to have budget items unrelated to their statutory mandates.
- Experts blamed weak budget oversight and alleged project insertions during legislative review.
- Economists called for a return to zero-based budgeting to improve fiscal discipline.
Main Story
About 78 Ministries, Departments and Agencies (MDAs) of the Federal Government have proposed spending nearly ₦400 billion in the 2026 budget on the construction and rehabilitation of community halls, mosques, traditional rulers’ palaces, market squares and civic centres, raising concerns over the country’s budget priorities.
Findings showed that more than half of the proposed allocation is dedicated to projects considered non-developmental, including the supply of grains, motorcycles and tricycles, sponsorship of community thrift societies, as well as the construction of museums and mini-stadia.
The affected agencies include the Ministry of Defence Headquarters, Nigerian Air Force, Nigerian Defence Academy, Federal Ministry of Information and National Orientation, Federal Ministry of Industry, Trade and Investment, National Building and Road Research Institute (NBRRI), National Productivity Centre, Industrial Training Fund, Federal Cooperative College, Kaduna, and several others.
Budget documents also revealed that some agencies proposed projects that appear unrelated to their statutory responsibilities.
For instance, the National Building and Road Research Institute budget contains provisions for constructing village halls in Anambra State, an international market in Jigawa State, traditional rulers’ palaces in Rivers and Kogi states, market stalls in Borno State and the remodelling of mosques across Kebbi, Ekiti and Jigawa states, with the projects valued at over ₦4 billion.
Similarly, the National Productivity Centre proposed projects including support for Ijaw musicians, construction of an Emir’s palace in Yobe State, refurbishment of Obas’ palaces in Ogun State, construction of an econometrics laboratory in Ekiti State and an abattoir in Gombe State.
The National Mathematical Centre also proposed funding the construction of a Sociology Department building at Ahmadu Bello University, Zaria, despite its mandate focusing on mathematical research and training.
Analysts argued that allocating substantial public funds to numerous small-scale projects weakens fiscal discipline and limits investment in priority sectors such as healthcare, education, roads, electricity, security and other strategic infrastructure capable of delivering broader economic benefits.
They also warned that many of the projects lack clear developmental impact, transparency and adequate oversight, while diverting scarce public resources from transformational national programmes.
The concerns come as Nigeria continues implementing the 2025 budget after the National Assembly approved a three-month extension of the capital expenditure implementation period from June 30 to September 30, 2026, to prevent project abandonment.
The 2026 Appropriation Act provides for total expenditure of ₦68.32 trillion, with projected revenue of ₦36.87 trillion, leaving a significant fiscal deficit to be financed through borrowing.
The Issues
Significant public funds are being allocated to projects considered outside the core mandates of several MDAs.
Critics say constituency-style projects weaken fiscal discipline and reduce investment in critical national infrastructure.
Nigeria continues implementing the previous year’s budget while preparing subsequent appropriations.
Analysts question the realism of the 2026 budget assumptions, particularly revenue projections and borrowing requirements.
Weak oversight and alleged budget insertions continue to generate concerns over transparency and accountability.
What’s Being Said
Consultant economist and former central banker, Chukwunonso Ihuma, attributed the proliferation of such projects to weak legislative oversight, alleging that lawmakers often insert projects during the budget approval process.
He advocated a return to zero-based budgeting, arguing that every expenditure should be justified from scratch and that projects unrelated to the mandates of MDAs should be removed.
The Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, said government faces increasing fiscal pressure following the end of Ways and Means financing, stressing that unrealistic budget assumptions and persistent implementation delays continue to undermine fiscal credibility.
Media strategist Umar Sani noted that while such projects are often included in appropriation bills, successive administrations have, in some instances, declined to implement budget items considered insignificant or inconsistent with national priorities.
The Nigerian Institute of Social and Economic Research (NISER) also emphasised that successful implementation of the budget would require stronger fiscal coordination, improved revenue mobilisation and structural reforms to address inflation, exchange rate volatility and governance challenges.
What’s Next
As implementation of the 2026 budget progresses, stakeholders are expected to intensify calls for stronger budget scrutiny, improved fiscal discipline and greater alignment of public expenditure with the statutory responsibilities of government agencies. The debate is also likely to shape future discussions on budget reforms and public finance management.
Bottom Line
The proposed allocation of nearly ₦400 billion for community projects by dozens of federal agencies has reignited concerns over Nigeria’s budgeting priorities, with experts urging government to redirect scarce resources towards critical sectors that deliver broader economic and social benefits.
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