Morganable News/Public InTerest
Analysts argue that allocating hundreds of billions of naira to numerous small-scale and often fragmented projects undermines the potential for strategic public investment
kaNo —
About 78 Ministries, Departments and Agencies (MDAs) of the Federal Government have earmarked nearly N400bn in the 2026 budget for the construction and rehabilitation of community halls, mosques, traditional rulers’ palaces, village market squares and civic centres, an investigation has revealed.
Findings show that a significant portion of the allocation is directed at projects widely described by analysts as low-impact and outside the core mandates of many of the agencies involved.
More than half of the N400bn is reportedly tied to items considered non-developmental, including the supply of grains and motorcycles, sponsorship of community thrift societies, construction of museums and mini-stadia, as well as the distribution of tricycles, popularly known as ‘Keke Marwa’, to communities.
The MDAs involved in the allocations cut across key sectors of government.
They include the Ministry of Defence Headquarters, the Nigerian Air Force, the Air Power Centre of Excellence, the Nigerian Defence Academy, the Technical Aid Corps, various foreign missions, and the Federal Ministry of Information and National Orientation.
Others are the Federal College of Land Resources in Owerri, the Institute of Agricultural Research and Training in Ibadan, and the Office of the Auditor-General for the Federation.
Also listed are agencies under the Ministry of Industry, Trade and Investment such as the Federal Institute of Industrial Research, Oshodi; the National Building and Road Research Institute; the National Productivity Centre; the Industrial Arbitration Panel; and the Industrial Training Fund.
Additional institutions include the National Agricultural Extension and Research Liaison Services in Zaria and the Federal Cooperative College in Kaduna, among many others.
Analysts Raise Concerns Over Inclusion Of Non-Developmental Projects
However, critics have raised concerns that many of the projects do not align with Nigeria’s pressing developmental needs, especially given the country’s fiscal constraints.
Analysts argue that allocating hundreds of billions of naira to numerous small-scale and often fragmented projects undermines the potential for strategic public investment.
According to them, funds tied up in such initiatives could instead be channelled into critical sectors like healthcare, education, security, roads, and power areas with the capacity to generate broader economic growth and improve citizens’ well-being.
In addition, they note that many of these projects lack transparency, effective oversight, and measurable developmental outcomes.
Concerns have also been raised about the inclusion of projects in agency budgets that appear to have little or no connection to their statutory responsibilities.
For instance, the National Building and Road Research Institute has budgetary provisions for projects such as the construction of village halls in Akukwa, Anambra State; an international market in Birniwa, Jigawa State; and traditional rulers’ palaces in Rivers State.
The institute is also expected to fund the refurbishment of the palace of the Agbana of Isanlu in Kogi State, among other community-based projects.
Additional items under its budget include the provision of market stalls in Gubio, the construction of a multipurpose hall in Sanga, Kaduna State, and the remodelling of mosques in Kebbi, Ekiti, and Jigawa states.
Similarly, the National Productivity Centre’s budget contains allocations for projects such as support for Ijaw musicians, the construction of an Emir’s palace in parts of Yobe State, and the refurbishment of Obas’ palaces in Ogun State.
The agency is also expected to fund the construction of an abattoir in Akko, Gombe State, raising further questions about mandate alignment.
In another instance, the National Mathematical Centre, Nigeria’s apex institution for mathematical research and training, is set to finance the construction of a Sociology Department building at Ahmadu Bello University, Zaria, an item many observers say falls outside its primary focus.
Poor Legislative Oversight Fueling Mismanagement
A consultant economist and former central banker, Chukwunonso Ihuma, attributed the situation largely to weak legislative oversight.
“All these are down to poor oversight by the National Assembly. In most cases, they are even the ones inserting, smuggling and padding these budgets,” he said.
Ihuma explained that while the legislature frequently increases budget proposals submitted by MDAs, it also uses the opportunity to introduce projects that may not deliver meaningful impact.
He called for a return to zero-based budgeting, a system that requires every expenditure to be justified from scratch rather than carried over from previous budgets.
According to him, such an approach would help eliminate irrelevant or wasteful spending.
He further argued that certain projects, such as markets and community centres, should be the responsibility of state and local governments rather than federal agencies.
“Markets are naturally meant to be handled by subnationals such as states and local governments, and traditional rulers should fix their palaces. Civic centres are projects done by village unions,” he said.
The controversy over the 2026 budget comes amid broader concerns about Nigeria’s fiscal management.
In April, President Bola Tinubu signed the 2026 Appropriation Bill into law, with total expenditure set at N68.32tn.
He also approved an extension of the 2025 budget implementation period from March 31 to June 30, 2026.
Subsequently, in July, the Senate granted an additional three-month extension for the capital component of the 2025 budget, shifting the deadline to September 30, 2026.
Lawmakers said the extension was necessary to prevent project abandonment and ensure the full utilisation of released funds.
2025 Budget Still Under Implementation
The development means that Nigeria is still implementing aspects of the 2025 budget well into the second half of 2026, raising further questions about budget efficiency and execution capacity.
The Nigerian Institute of Social and Economic Research has emphasised the need for improved fiscal coordination and structural reforms to ensure effective budget implementation.
The institute noted that tackling inflation, exchange rate volatility, and social inequality remains critical to achieving sustainable economic growth.
As scrutiny of the 2026 budget intensifies, stakeholders say addressing inefficiencies, strengthening oversight, and prioritising high-impact projects will be essential to ensuring that public funds deliver tangible benefits to Nigerians.
