Findings from the proposed 2026 Federal Government budget show that about 78 Ministries, Departments and Agencies (MDAs) have set aside nearly N400 billion for the construction and renovation of community halls, mosques, traditional rulers’ palaces, village market squares and civic centres.
The projects are spread across several agencies, including the Ministry of Defence Headquarters, Nigerian Air Force, Nigerian Defence Academy, Technical Aid Corps, Federal Ministry of Information and National Orientation, Federal Ministry of Industry, Trade and Investment, Federal Institute of Industrial Research Oshodi, National Building and Road Research Institute, National Productivity Centre, Industrial Training Fund and others.
According to the findings, more than half of the allocations are for projects regarded as non-developmental, including the supply of grains, motorcycles and tricycles, sponsorship of community thrift societies, construction of museums and mini-stadia, and similar community-based interventions.
Critics say many of the projects do not reflect Nigeria’s most pressing national needs, especially amid current fiscal challenges.
Analysts argue that allocating hundreds of billions of naira to numerous small and fragmented projects could reduce funding available for sectors such as healthcare, education, security, roads, electricity and other critical infrastructure with broader economic impact.
They also warned that many of the projects appear to have limited transparency, weak oversight and unclear developmental value.
Among the controversial items identified is the budget of the National Building and Road Research Institute, which includes projects such as the construction of village halls in Akukwa, Anambra State; an international market in Birniwa, Jigawa State; traditional rulers’ palaces in Rivers State; refurbishment of the Agbana of Isanlu palace in Kogi State; market stalls in Gubio; a multipurpose hall in Sanga, Kaduna State; and the remodeling of five mosques in Kebbi, Ekiti and Jigawa states.
Analysts estimate that these projects alone account for more than N4 billion.
The National Productivity Centre was also reported to have budgeted for items such as support for Ijaw musicians, construction of an Emir’s palace in Yobe State, refurbishment of Obas’ palaces in Ogun State, and construction of an abattoir in Gombe State.
Similarly, the National Mathematical Centre is expected to finance the construction of a Sociology Department building at Ahmadu Bello University, Zaria, a project some observers say falls outside the agency’s core mandate.
Consultant economist and former central banker Chukwunonso Ihuma blamed what he described as weak oversight by the National Assembly.
He alleged that lawmakers often insert projects with little national impact into MDA budgets and called for a return to zero-based budgeting, where every expenditure must be justified from scratch.
Ihuma argued that projects such as markets, civic centres and traditional rulers’ palaces are typically the responsibility of state governments, local governments and community associations, not federal agencies.
The controversy comes as Nigeria is still implementing parts of the 2025 budget.
President Bola Tinubu signed the 2026 Appropriation Bill, which provides for N68.32 trillion in total expenditure, and also approved an extension of the implementation period for the 2025 budget from March 31 to June 30, 2026.
In July 2026, the Senate further extended the implementation of the capital component of the 2025 budget to September 30, 2026, to prevent project abandonment and allow full use of released funds.
Economists have also questioned the assumptions behind the 2026 budget, which projects N36.87 trillion in revenue, an oil price benchmark of $75 per barrel, oil production of 1.84 million barrels per day, GDP growth of 4.28 to 4.68 percent, and N15.81 trillion for debt servicing.
The Nigerian Institute of Social and Economic Research (NISER) said successful implementation of the budget would require stronger fiscal and monetary coordination, improved revenue generation and structural reforms to address inflation, exchange-rate volatility and social inequality.
The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, said the end of large-scale Ways and Means financing has left the government with a significant funding gap and increased pressure on budget financing.
Former presidential adviser Umar Sani noted that even when such projects appear in the budget, the executive does not always implement them, which often leads to disputes between lawmakers and government agencies over budget execution.
