Over N400bn Allocated for Mosques, Palaces, Community Halls in 2026 Budget

A review of the 2026 Federal Government budget has revealed that more than N400 billion was allocated by about 78 Ministries, Departments and Agencies (MDAs) for the construction and renovation of mosques, traditional rulers’ palaces, community halls, village market squares and civic centres across the country.

The allocations, spread across dozens of federal agencies, have led to criticism from economists and policy experts, who argue that the funds could have been better invested in critical sectors such as healthcare, education, power, security and road infrastructure.

An examination of the budget also showed that more than half of the amount was earmarked for projects considered by critics to be outside key national development priorities. These include the supply of grains, motorcycles and tricycles, sponsorship of community thrift societies, as well as the construction of museums and mini-stadia.

Among the agencies with such allocations 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 Federal Ministry of Industry, Trade and Investment, the Federal Institute of Industrial Research, Oshodi, the National Building and Road Research Institute, the National Productivity Centre and several other federal institutions.

Analysts expressed concern that many of the projects have little connection with the statutory responsibilities of the agencies expected to execute them. They warned that the growing number of small and scattered projects weakens fiscal discipline and limits the government’s ability to deliver major infrastructure capable of driving economic growth.

The National Building and Road Research Institute was cited as one of the agencies with several unusual budget items. Its allocation reportedly includes the construction of village halls in Anambra State, an international market in Jigawa State, traditional rulers’ palaces in Rivers and Kogi states, market stalls in Borno State, a multipurpose hall in Kaduna State and the remodelling of mosques in Kebbi, Ekiti and Jigawa states. The projects are valued at more than N4 billion.

Similarly, the National Productivity Centre’s budget reportedly contains allocations for support to Ijaw musicians, the construction of an Emir’s palace in Yobe State, an econometrics laboratory in Ekiti State, the refurbishment of Obas’ palaces in Ogun State and the construction of an abattoir in Gombe State.

The National Mathematical Centre also came under scrutiny after its budget included funding for the construction of a Sociology Department building at Ahmadu Bello University, Zaria, a project observers say falls outside the institution’s core mandate.

Consultant economist and former central banker, Chukwunonso Ihuma, blamed the National Assembly for the inclusion of many of the projects in the 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.

He argued that lawmakers often increase the budgets submitted by MDAs and use the opportunity to include projects with little national impact.

“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.

“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. If I were the president, I would give each MDA money per item,” Ihuma added.

The 2026 Appropriation Act provides for total government spending of N68.32 trillion. Despite the approval of the new budget, the Federal Government is still implementing parts of the 2025 budget after the National Assembly extended the deadline for its capital component to September 30, 2026, to prevent project abandonment.

Economic experts have also questioned the assumptions behind the 2026 budget, describing them as overly optimistic. The budget projects revenue of N36.87 trillion, leaving a significant funding gap to be financed through borrowing. It is based on an oil price benchmark of 75 dollars per barrel, oil production of 1.84 million barrels per day and GDP growth of between 4.28 and 4.68 per cent, while debt servicing is estimated at N15.81 trillion.

Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said the government is under increasing fiscal pressure following the end of the controversial Ways and Means financing arrangement.

“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,” Yusuf said.

“Perhaps, we can begin to rely on experts to give us budgets that we have the capacity to handle. We are still struggling with the 2025 budget, yet we are still talking about the 2026 budget. Poor budgeting erodes the confidence of stakeholders, and some of the items are statutorily meant for states and local governments.”

Media strategist and former adviser to Vice President Namadi Sambo, Umar Sani, also noted that some projects included in appropriation laws are not eventually executed by the executive.

“Even when you have such projects in the budget, the executive sometimes do not implement them, which explains why the legislators sometimes protest that certain aspects of the budget are not implemented,” he said.

He added, “So many things were brought to Buhari and Jonathan, but they did not sign them. This has been the case.”