No fewer than 78 Ministries, Departments and Agencies (MDAs) of the Federal Government have collectively allocated nearly ₦400 billion in the 2026 budget for the construction and rehabilitation of community halls, traditional rulers’ palaces, mosques, village market squares and civic centres, raising fresh concerns over the country’s spending priorities.
An examination of the budget revealed that more than half of the allocation was dedicated to projects widely regarded by critics as non-essential, including the supply of grains, motorcycles and tricycles, the sponsorship of community thrift societies, the construction of museums and mini-stadia, and other community-based interventions.
Among the agencies involved are the Ministry of Defence Headquarters, the Nigerian Air Force, the Air Power Centre of Excellence, the Nigerian Defence Academy, the Technical Aid Corps, the Federal Ministry of Information and National Orientation, the Office of the Auditor-General for the Federation and several research institutions across the country.
Economic analysts and public finance experts have questioned the rationale behind the projects, arguing that they divert resources away from sectors such as healthcare, education, power generation, transportation infrastructure and national security.
According to them, the growing trend of allocating substantial funds to fragmented projects weakens fiscal discipline and limits the government’s ability to deliver sustainable development.
Experts also expressed concern over the inclusion of projects that appear to have little connection with the core mandates of some agencies.
For instance, the National Building and Road Research Institute, Lagos, reportedly budgeted for the construction of village halls in Anambra State, an international market in Jigawa State and several traditional rulers’ palaces in Rivers and Kogi states.
The institute also allocated funds for the construction of market stalls, multipurpose halls and the remodelling of mosques in Kebbi, Ekiti and Jigawa states, with the combined projects estimated to cost more than ₦4 billion.
Similarly, the National Productivity Centre included allocations for the support of Ijaw musicians, the construction of an Emir’s palace in Yobe State, the refurbishment of palaces in Ogun State and the establishment of an abattoir in Gombe State.
The National Mathematical Centre also came under scrutiny after allocating funds for the construction of a Sociology Department building at Ahmadu Bello University, Zaria, a project critics say falls outside the institution’s statutory responsibilities.
A consultant economist and former central banker, Chukwunonso Ihuma, blamed the National Assembly for what he described as weak oversight and the widespread insertion of questionable projects into the national budget.
“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 argued that Nigeria should adopt a more rigorous zero-based budgeting model in which every expenditure item is justified from the beginning of each fiscal cycle rather than being carried over from previous years.
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He also maintained that many of the projects ought to be handled by state governments, local government councils and community organisations instead of 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.
Concerns over the allocations come as the country continues to grapple with the implementation of previous budgets.
President Bola Tinubu signed the 2026 Appropriation Bill, valued at ₦68.32 trillion, into law in April, while extending the implementation period of the 2025 budget.
In July, the Senate approved an additional three-month extension for the implementation of the capital component of the 2025 budget to prevent the abandonment of ongoing projects and ensure the full utilisation of released funds.
The Nigerian Institute of Social and Economic Research warned that the successful implementation of the budget would require stronger fiscal coordination, improved revenue generation and broader structural reforms.
The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, also expressed concerns over the sustainability of government spending, noting that the discontinuation of the Central Bank of Nigeria’s Ways and Means financing arrangement had widened the country’s fiscal challenges.
Analysts have also questioned the assumptions underpinning the 2026 budget, including projected revenue of ₦36.87 trillion, crude oil production of 1.84 million barrels per day and an oil price benchmark of 75 dollars per barrel.
They argue that unrealistic projections, coupled with rising debt-servicing obligations, could further increase pressure on public finances and undermine confidence in the budgeting process.
For many observers, the controversy has once again brought renewed attention to the need for greater transparency, stricter oversight and a more disciplined approach to public expenditure management in Africa’s largest economy.