The 2026 Federal Government budget has come under scrutiny after findings revealed that about 78 Ministries, Departments and Agencies (MDAs) earmarked close to N400 billion for the construction and rehabilitation of mosques, traditional rulers’ palaces, community halls, village market squares and other civic projects.
Budget documents show that many of the allocations cover projects that analysts argue fall outside the statutory mandates of the agencies responsible for implementing them.
Several MDAs, including the Ministry of Defence Headquarters, the Nigerian Air Force, the Federal Ministry of Industry, Trade and Investment, the National Building and Road Research Institute (NBRRI), the National Productivity Centre and the National Mathematical Centre, were among institutions with allocations for community-based projects.
The budget also contains provisions for the supply of grains, motorcycles, tricycles, support for community thrift societies, museums and mini stadiums, accounting for more than half of the total allocation.
Economic analysts have questioned the rationale behind the spending, arguing that scarce public resources should be directed toward critical sectors such as healthcare, education, power infrastructure, transportation and security.
According to experts, the growing number of fragmented constituency-style projects weakens fiscal discipline and reduces the government’s capacity to deliver large-scale development initiatives capable of stimulating economic growth.
Several allocations have also attracted attention because they appear unrelated to the mandates of the agencies involved.
For example, the National Building and Road Research Institute is expected to execute projects including the construction of village halls in Anambra State, an international market in Jigawa State, traditional rulers’ palaces in Rivers and Kogi states, market stalls in Borno, community halls in Kaduna and the renovation of mosques across Kebbi, Ekiti and Jigawa states.
Similarly, the National Productivity Centre received allocations for projects including support for Ijaw musicians, construction of an emir’s palace in Yobe State, an econometrics laboratory in Ekiti State, royal palaces in Ogun State and an abattoir in Gombe State.
The National Mathematical Centre was also allocated funds for the construction of a Sociology Department building at Ahmadu Bello University, a project observers say falls outside its primary responsibility.
Economist and former central banker Chukwunonso Ihuma blamed weak legislative oversight for the proliferation of such projects.
According to him, the National Assembly frequently inserts projects into agency budgets during the appropriation process, resulting in spending that delivers limited national impact.
He advocated a return to zero-based budgeting, where every expenditure must be justified from the beginning of each fiscal year, arguing that agencies should only receive funding for projects directly related to their statutory responsibilities.
Nigeria’s 2026 Appropriation Act provides for total expenditure of N68.32 trillion. However, analysts have questioned the underlying assumptions, including projected revenues, oil production targets and financing plans.
The budget projects revenue of N36.87 trillion, leaving a substantial fiscal deficit that will require additional borrowing. It also estimates crude oil production of 1.84 million barrels per day and assumes an average oil price of $75 per barrel.
Financial experts have warned that unrealistic budget assumptions, delayed implementation and the inclusion of low-impact projects continue to undermine fiscal credibility and public confidence in Nigeria’s budgeting process.
