There are at least N3.50tn new projects in the proposed 2026 budget, according to an analysis by The PUNCH.
This is despite earlier budget preparation guidelines that directed Ministries, Departments, and Agencies to carry over 70 per cent of their 2025 capital allocation into 2026 and avoid introducing new capital projects.
Figures collated from the 2026 Appropriation Bill show that new project entries amount to N844.49bn across MDAs, while the total rises to N3.50tn when Service Wide Votes are included.
Against the proposed capital budget of N23.21tn for 2026, the combined new project provision of N3.50tn represents 15.09 per cent of total capital expenditure.
The Service-Wide Votes component within the new project portfolio totals N2.66tn, reflecting the concentration of the largest single allocations outside conventional ministerial capital lines.
Earlier in December 2025, The PUNCH reported that the Federal Government ordered ministries, departments, and agencies to carry over 70 per cent of their 2025 capital budget into the 2026 fiscal year as the administration moves to prioritise the completion of existing projects and contain spending pressures in the face of weak revenues.
This directive is contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning and circulated to all ministers, service chiefs, heads of agencies, and top government officials in Abuja.
According to the circular, “MDAs are to upload 70 per cent of their 2025 FGN Budget to continue in FY2026. All such rollover and uploads MUST be in line with the immediate needs of the country as well as the government’s development priorities that align with the policy direction of the new administration, which hinges on National Security, the Economy, Education, Health, Agriculture, Infrastructure, Power & Energy, as well as social safety nets, women & youth empowerment.”
It stated that ministries and agencies must continue with the allocations already approved in the 2025 budget rather than seeking fresh projects. The circular said all expenditure would be properly scrutinised to allow only essential spending and to ensure value for money
However, The PUNCH observed that no fewer than 82 MDAs have at least one fresh capital or programme item included in the budget.
Across these MDAs, the proposed budget contains over 400 new project lines, ranging from large multibillion-naira infrastructure and health investments to smaller constituency-level interventions such as boreholes, training schemes, and equipment supply.
Also, the review of the Service Wide Votes, with 18 new projects in the 2026 appropriation bill, shows that a significant share of the new project portfolio is tied to financing programmes, security-related provisions, liabilities, and central initiatives.
The largest single line item is the provision for 2024 outstanding contractors’ liabilities put at N1.70tn. This allocation alone accounts for about 48.55 per cent of the N3.50tn total new projects, including Service Wide Votes.
Also, the bill includes three N100bn provisions under Service Wide Votes for the Nigeria Development Finance Corporation, the Economic Transformation Finance Programme, and the Nigeria Growth Investment Fund, bringing the total for these three funding lines to N300bn.
The Service Wide Votes entries also include capitalisation of INFRACO of N20bn, a DSS special operations fund of N30bn, and N110.31bn for the Nigerian Air Force to meet outstanding obligations on six T-129 ATAK helicopters and three Mi-35 helicopters. Another large entry is presidential air fleet logistics and management, including operation of the National Forest Guard, put at N283.85bn.
There is also a recurrent related take-off grant line for new MDAs at N41.12bn and a capital take-off grant line for 12 new MDAs, most in health and education, at N19.50bn, alongside other service-wide provisions such as pension increases due to consequential adjustment and payment of gratuity to civil servants.
Within the MDA level items, the five MDAs with the highest value of new projects, based on the figures provided, are the Budget Office of the Federation, the Federal Ministry of Transport headquarters, the National Library of Nigeria, the National Blood Service Commission, and the Sokoto Rima River Basin Development Authority.
The Budget Office of the Federation has the largest MDA level new project provision at N375bn for a multilateral or bilateral tied loan line for the Power Sector.
2026 budget twist: MDAs inject N3.5tn new projects despite FG freeze
