About 78 federal Ministries, Departments and Agencies (MDAs) have collectively earmarked nearly N400bn in the 2026 budget for the construction and rehabilitation of mosques, traditional rulers’ palaces, community halls, market squares and civic centers.
Findings show that a significant portion of the funds is also allocated to non-core projects, including the supply of motorcycles, tricycles, grains, and support for local groups, raising concerns among analysts about the quality of public spending.
The affected MDAs include institutions such as the Ministry of Defence, Nigerian Air Force, Federal Ministry of Information, National Productivity Centre, and several research and training bodies.
Experts argue that many of the projects fall outside the statutory mandates of these agencies. For example, the National Building and Road Research Institute is listed as funding village halls, markets, and palace projects across several states, while the National Mathematical Centre is expected to finance a university sociology building.
Economists and policy analysts say the widespread allocation to small, fragmented projects undermines fiscal discipline and diverts resources from critical sectors such as healthcare, education, infrastructure, and security.
“These kinds of expenditures weaken the impact of public investment,” analysts note, warning that the opportunity cost is high in a period of tight fiscal conditions.
A former central banker, Chukwunonso Ihuma, blamed weak oversight and legislative interference, alleging that lawmakers often insert projects into budgets that lack national relevance.
He called for a return to zero-based budgeting, where all expenditures must be justified from scratch, and urged stricter controls to ensure funds are tied to core agency functions.
The controversy comes as Nigeria continues to implement the 2025 budget well into 2026, following extensions approved by the National Assembly to prevent project abandonment.
The 2026 budget, signed by President Bola Tinubu, totals N68.32tn and is based on revenue projections of N36.87tn, leaving a significant deficit to be financed through borrowing. Analysts have also questioned the assumptions underpinning the budget, including oil production targets and revenue expectations.
Economic experts warn that unrealistic projections, combined with questionable spending priorities, could further strain public finances and weaken investor confidence.
They recommend improved fiscal discipline, better revenue mobilization, and a stronger focus on high-impact investments to drive economic growth and improve citizens’ welfare.
Leave feedback about this