FG Budgets Nearly N1tn For SUVs,Amid Rising Borrowing

Morganable Politics/Government

A breakdown of the ministries’ allocations shows that the Ministry of Industry, Trade and Investment received N156.8bn, Housing and Urban Development was allocated N145.3bn, while the Ministry of Women Affairs got N169.39bn.

kaNo —

The Federal Government has earmarked a total of N962.83bn for the procurement of Sport Utility Vehicles (SUVs) and the implementation of empowerment projects in the 2026 Appropriation Act, a figure that has sparked fresh concerns over fiscal priorities amid rising public debt.

An analysis of the 2026 budget by civic technology organisation Tracka revealed that the allocation exceeds the combined budgets of seven key federal ministries, raising questions about transparency, accountability, and value for money in government spending.

According to Tracka, the allocation comprises N15.13bn for the purchase of 39 SUVs and a significantly larger N947.70bn for 2,579 empowerment projects spread across various government agencies. The combined total stands at N962.83bn.

The organisation noted that the figure surpasses the cumulative N960.27bn allocated to the Federal Ministries of Industry, Trade and Investment; Housing and Urban Development; Women Affairs; Justice; Livestock Development; Aviation and Aerospace Development; and Petroleum Resources.

A breakdown of the ministries’ allocations shows that the Ministry of Industry, Trade and Investment received N156.8bn, Housing and Urban Development was allocated N145.3bn, while the Ministry of Women Affairs got N169.39bn.

The Ministry of Justice received N150.7bn, Livestock Development got N177.6bn, Aviation and Aerospace Development was allocated N87.3bn, and Petroleum Resources received N73.1bn.

Tracka expressed particular concern over what it described as limited transparency surrounding the empowerment projects, noting that only a small fraction of them have clearly defined implementation locations.

“Yet, only 70 of the 2,579 empowerment projects have clearly identified implementation locations,” the organisation stated.

It warned that the absence of location details raises serious accountability challenges, making it difficult for citizens and oversight bodies to track implementation or verify whether the projects are executed as planned.

“How can citizens track projects with no stated location? How can oversight institutions verify implementation? How can taxpayers know who ultimately benefits from these allocations?” the group queried.

Further analysis showed that the projects are distributed across 184 implementing agencies, including several institutions whose mandates do not traditionally include empowerment programmes.

Among the agencies highlighted in the report, the Federal Cooperative College, Oji River, was assigned 393 projects valued at N127.1bn, while the National Agricultural Development Fund was allocated six projects worth N89.5bn.

Similarly, the Federal College of Horticulture, Dadin-Kowa, Gombe State, received 216 projects valued at N88.1bn, while the Federal Cooperative College, Ibadan, was assigned 94 projects worth N36.9bn.

Largest Empowerment Gulps N89.09bn

A review of the budget document further revealed that the largest single empowerment allocation is N89.09bn for the Renewed Hope Fertiliser Support Programme under the National Agricultural Development Fund.

Other notable allocations include N14bn for the procurement and distribution of economic empowerment equipment and utility vehicles through the Federal Cooperative College, Oji River; N14bn for youth empowerment programmes under the Federal Ministry of Youth Development; and another N14bn for youth empowerment and medical outreach under the Ministry of Humanitarian Affairs and Poverty Alleviation.

The budget also contains numerous provisions for the procurement of buses, tricycles, motorcycles, electric vehicles, sewing machines, fertilisers, vocational tools, grants, and other items intended to support livelihoods across different regions.

While acknowledging the potential benefits of empowerment programmes, Tracka stressed that such initiatives must be carefully designed and transparently implemented to achieve meaningful impact.

“There is nothing inherently wrong with empowerment programmes. When well-designed and transparently implemented, they can improve livelihoods, create economic opportunities, and support vulnerable Nigerians,” the organisation noted.

However, it warned that past experience suggests that poorly structured empowerment schemes often become vehicles for political patronage rather than instruments of broad-based development.

“Experience over the years has shown that many poorly defined empowerment projects have become vehicles for political patronage, rewarding loyalists rather than delivering broad-based benefits to citizens,” Tracka stated.

The organisation added that when projects lack clear locations, transparent beneficiary selection processes, and are assigned to agencies without the appropriate mandate, public confidence is undermined and accountability becomes difficult.

Tracka Express Concern Over Finance Expenditure

Tracka also linked its concerns to Nigeria’s current fiscal position, noting that the 2026 budget is heavily reliant on borrowing to finance expenditure.

“This concern is even more pressing given that the 2026 Budget is projected to be financed with a deficit of about 46 per cent. At a time when government is borrowing heavily to fund public expenditure, every naira should be directed toward investments with clear development outcomes, measurable impact, and value for money,” the group said.

The concerns come against the backdrop of a significant increase in the Federal Government’s borrowing plan for 2026.

According to earlier reports by Punch, the government raised its borrowing projection to N29.20tn following an expansion in the proposed budget size.

This represents an increase of N11.31tn compared to the earlier estimate of N17.89tn contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning.

Further findings indicate that total debt financing for 2026 is now projected at N29.2tn, reflecting a sharp upward revision driven by increased expenditure.

The overall budget size is estimated at N68.32tn, while aggregate revenues are projected at N36.87tn, resulting in a fiscal deficit of N31.46tn.

In addition to external borrowing plans, the Federal Government has also intensified domestic borrowing efforts.

Data from the Debt Management Office show that the government raised N5.08tn from the domestic bond market in the first half of 2026, representing a 77.8 per cent increase compared to the N2.86tn raised during the same period in 2025.

The rising debt profile has heightened concerns among economists and policy analysts, who warn that increasing reliance on borrowing to fund recurrent and non-essential expenditures could pose long-term risks to fiscal sustainability.

Tracka called on the government to prioritise transparency and accountability in budget preparation and implementation, emphasising that public trust depends on clear and measurable outcomes.

“A budget should not only allocate resources; it should also inspire public confidence,” the organisation said.

It added that every budget item should have a clearly defined purpose, a specific location, an implementing agency with the legal mandate to execute it, identifiable beneficiaries, and measurable outcomes.

As scrutiny of the 2026 Appropriation Act continues, analysts say the debate underscores the need for a more transparent and impact-driven budgeting process, particularly at a time when Nigeria faces mounting economic pressures and growing public demand for accountability in government spending.