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2026 Budget Twist: MDAs Inject ₦3.5tn in New Projects Despite FG Freeze

Abuja, Nigeria — Ministries, Departments and Agencies (MDAs) have inserted a staggering ₦3.50 trillion worth of new projects into the proposed 2026 Federal Budget, even after the Federal Government (FG) issued a strict freeze on fresh capital projects during budget preparation.

The latest analysis of the 2026 Appropriation Bill reveals that MDAs added over 400 new project lines with provisions totaling more than ₦844.49 billion at the MDA level. When combined with Service Wide Votes (SWV) — central allocations for recurrent and cross-agency programmes — the total leaps to ₦3.5tn, about 15.09% of the proposed ₦23.21tn capital budget.

This development comes despite the Budget Call Circular from the Federal Ministry of Budget and Economic Planning directing MDAs to roll over 70% of their 2025 capital allocations into the new fiscal year and avoid new project entries to prioritise completion of ongoing works.

A significant portion of the new SWV provisions is tied to outstanding contractors’ liabilities, which alone accounts for roughly ₦1.70tn, nearly half of all the new injections. Other SWV items include huge funding lines for intervention programmes and strategic initiatives.

At the MDA level, the Budget Office of the Federation topped the list with a ₦375bn project for power sector financing, while the Federal Ministry of Transport and various social sector agencies accounted for billions more in fresh allocations.

Critics are warning that the move undermines fiscal discipline and the FG’s bid to streamline expenditures amid revenue pressures. They argue that late budget presentation and rushed approvals have weakened oversight by the National Assembly, allowing such budgetary indiscipline to flourish.