About 78 federal Ministries, Departments and Agencies (MDAs) have allocated nearly N400 billion in the 2026 budget for the construction and rehabilitation of community halls, mosques, traditional rulers’ palaces, village market squares and civic centres, according to findings by The PUNCH.
More than half of the allocation is for projects critics describe as having limited developmental impact, including the distribution of grains and motorcycles, sponsorship of community thrift societies, construction of museums and mini-stadia, and the provision of tricycles, popularly known as ‘Keke Marwa’, to communities.
Among the MDAs reviewed were the Ministry of Defence Headquarters, the Nigerian Air Force, Air Power Centre of Excellence, Nigerian Defence Academy, Technical Aid Corps, foreign missions, the Federal Ministry of Information and National Orientation, Federal College of Land Resources, Owerri, Institute of Agricultural Research and Training, Ibadan, and the Office of the Auditor-General for the Federation.
Others include the Federal Ministry of Industry, Trade and Investment, Federal Institute of Industrial Research, Oshodi, National Building and Road Research Institute, National Productivity Centre, Industrial Arbitration Panel, Industrial Training Fund, National Agricultural Extension and Research Liaison Services, Zaria, and Federal Cooperative College, Kaduna, among others.
Critics have questioned the prioritisation of such projects, arguing that the allocations do not reflect Nigeria’s most pressing needs amid current fiscal challenges.
Analysts said the diversion of hundreds of billions of naira into numerous small-scale projects could reduce the impact of public spending by limiting investment in critical areas such as healthcare, education, security, roads, power and other essential infrastructure.
They warned that the proliferation of fragmented projects could weaken fiscal discipline and restrict the government’s capacity to provide quality public services.
According to them, scarce resources are being spread across projects that often lack transparency, adequate oversight and measurable developmental outcomes, creating a significant opportunity cost for the economy.
Experts also raised concerns that some budget items appeared unrelated to the statutory responsibilities of the agencies handling them.
For example, the National Building and Road Research Institute has budgeted for projects including the construction of village halls in Akukwa, Anambra State; an international market in Birniwa, Jigawa State; traditional rulers’ palaces at Sarkin Wuse, Osokodoko and Osana in Rivers State; and the construction and refurbishment of the palace of the Agbana of Isanlu in Kogi State.
The agency also listed the provision of market stalls in Gubio, a multipurpose hall in Sanga, Kaduna State, and the remodelling of five mosques in locations including Kebbi, Ekiti and Jigawa states. The projects are estimated to cost more than N4 billion, despite questions over their relevance to the institute’s mandate.
Similarly, the National Productivity Centre’s budget contains items such as support for Ijaw musicians, construction of an Emir’s palace in Nguru/Yusufari/Machina/Karasuwa in Yobe State, an econometrics laboratory in Ekiti State, refurbishment of traditional rulers’ palaces in Ogun State, and the construction of an abattoir in Akko, Gombe State.
The National Mathematical Centre, Nigeria’s leading institution for mathematical research and training, also allocated funds for the construction of a Sociology Department building at Ahmadu Bello University, Zaria, a project critics said falls outside its core responsibilities.
A consultant economist and former central banker, Chukwunonso Ihuma, blamed the situation on weak oversight by the National Assembly.
“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,” Ihuma said.
He argued that lawmakers often increase budgets submitted by MDAs while inserting projects that have little impact on citizens.
“This explains why we have to go back to zero budgeting. We have to start from scratch. The Director-General of the Budget Office of the Federation should have the powers to discard any item that has no relevance to Nigerians,” he said.
Ihuma added that markets should primarily be handled by state and local governments, while traditional rulers and community groups should be responsible for projects such as palaces and civic centres.
Zero-based budgeting requires all expenses to be justified from the beginning of each budget cycle rather than relying on previous allocations as a starting point.
President Bola Tinubu signed the 2026 Appropriation Bill into law in April, approving total expenditure of N68.32 trillion. He also approved an extension of the implementation period for the 2025 budget from 31 March 2026 to 30 June 2026.
In July, the Senate approved a further three-month extension for the capital component of the 2025 Appropriation Act, moving the deadline to 30 September 2026. Lawmakers said the extension was intended to prevent project abandonment and ensure the utilisation of released funds.
The Nigerian Institute of Social and Economic Research said effective implementation of the 2025 budget would require improved revenue mobilisation, fiscal and monetary coordination, and reforms to address inflation, exchange rate volatility, inequality and economic diversification.
The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said the discontinuation of the Central Bank’s Ways and Means financing had created a funding gap for the government.
Ways and Means allows the government to obtain temporary financing from the Central Bank of Nigeria when funds are insufficient. The facility accumulated significantly under the previous administration and has since been converted into government securities.
Analysts have also described some assumptions in the 2026 budget as unrealistic. The budget projects revenue of N36.87 trillion, with the deficit expected to be financed through borrowing. It assumes an oil price benchmark of $75 per barrel, up from the initial $64.85, and oil production of 1.84 million barrels per day.
GDP growth is projected at between 4.28 per cent and 4.68 per cent, while debt servicing is estimated at N15.81 trillion.
Yusuf said the government needed to adopt more realistic projections to restore confidence among stakeholders.
“We have to make a change and turn a new leaf. We did not have realistic projections in the budget, so the disparity is getting too big,” he said.
Media strategist and former adviser to Vice-President Namadi Sambo, Umar Sani, said some executives had in the past rejected budgets containing projects considered insignificant.
He said effective leadership required careful scrutiny of budget proposals to ensure public resources were directed towards projects with meaningful national impact.
