2026 Budget: FG Agencies Allocate Nearly N400bn to Community Projects

By Abigail David
About 78 Ministries, Departments and Agencies (MDAs) of the Federal Government have allocated nearly N400 billion in the 2026 budget for community-based projects, including the construction and renovation of mosques, traditional rulers’ palaces, community halls, village market squares and civic centres, according to findings by The Press.
The report indicates that more than half of the allocation is earmarked for projects such as the supply of grains, motorcycles and tricycles, support for community thrift societies, mini-stadia and museums.
Several federal institutions, including the Ministry of Defence, the Nigerian Air Force, the Federal Ministry of Information and National Orientation, the Federal Ministry of Industry, Trade and Investment, the National Building and Road Research Institute and the National Productivity Centre, were listed among agencies with such budget provisions.
Some of the projects identified include the construction of traditional rulers’ palaces, community halls, market stalls, international markets, mosques and abattoirs in different states. The report also highlighted budget items that analysts say appear unrelated to the statutory responsibilities of some of the affected agencies.
Economic and public finance experts have questioned the allocations, arguing that scarce public funds should prioritise sectors such as healthcare, education, security, power and transport infrastructure, which they say could deliver broader economic and social benefits.
A consultant economist and former central banker, Chukwunonso Ihuma, attributed the situation to weak budget oversight, alleging that projects unrelated to agency mandates are often introduced during the appropriation process. He called for stricter budget scrutiny and greater adherence to zero-based budgeting principles.
Similarly, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, urged more realistic budgeting and stronger fiscal discipline, noting that Nigeria is still implementing parts of the 2025 budget while planning for 2026.
The 2026 Appropriation Act, signed into law by President Bola Tinubu, provides for total spending of N68.32 trillion. The budget assumes N36.87 trillion in revenue, with the remaining funding expected to come largely through borrowing.




