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2026 budget twist: MDAs inject N3.5tn new projects despite FG freeze

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There are at least N3.50tn new projects in the proposed 2026 budget, according to an analysis by The PUNCH.

This is despite earlier budget preparation guidelines that directed Ministries, Departments, and Agencies to carry over 70 per cent of their 2025 capital allocation into 2026 and avoid introducing new capital projects.

Figures collated from the 2026 Appropriation Bill show that new project entries amount to N844.49bn across MDAs, while the total rises to N3.50tn when Service Wide Votes are included.

Against the proposed capital budget of N23.21tn for 2026, the combined new project provision of N3.50tn represents 15.09 per cent of total capital expenditure.

The Service-Wide Votes component within the new project portfolio totals N2.66tn, reflecting the concentration of the largest single allocations outside conventional ministerial capital lines.

Earlier in December 2025, The PUNCH reported that the Federal Government ordered ministries, departments, and agencies to carry over 70 per cent of their 2025 capital budget into the 2026 fiscal year as the administration moves to prioritise the completion of existing projects and contain spending pressures in the face of weak revenues.

This directive is contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning and circulated to all ministers, service chiefs, heads of agencies, and top government officials in Abuja.

According to the circular, “MDAs are to upload 70 per cent of their 2025 FGN Budget to continue in FY2026. All such rollover and uploads MUST be in line with the immediate needs of the country as well as the government’s development priorities that align with the policy direction of the new administration, which hinges on National Security, the Economy, Education, Health, Agriculture, Infrastructure, Power & Energy, as well as social safety nets, women & youth empowerment.”

It stated that ministries and agencies must continue with the allocations already approved in the 2025 budget rather than seeking fresh projects. The circular said all expenditure would be properly scrutinised to allow only essential spending and to ensure value for money

However, The PUNCH observed that no fewer than 82 MDAs have at least one fresh capital or programme item included in the budget.

Across these MDAs, the proposed budget contains over 400 new project lines, ranging from large multibillion-naira infrastructure and health investments to smaller constituency-level interventions such as boreholes, training schemes, and equipment supply.

Also, the review of the Service Wide Votes, with 18 new projects in the 2026 appropriation bill, shows that a significant share of the new project portfolio is tied to financing programmes, security-related provisions, liabilities, and central initiatives.

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The largest single line item is the provision for 2024 outstanding contractors’ liabilities put at N1.70tn. This allocation alone accounts for about 48.55 per cent of the N3.50tn total new projects, including Service Wide Votes.

Also, the bill includes three N100bn provisions under Service Wide Votes for the Nigeria Development Finance Corporation, the Economic Transformation Finance Programme, and the Nigeria Growth Investment Fund, bringing the total for these three funding lines to N300bn.

The Service Wide Votes entries also include capitalisation of INFRACO of N20bn, a DSS special operations fund of N30bn, and N110.31bn for the Nigerian Air Force to meet outstanding obligations on six T-129 ATAK helicopters and three Mi-35 helicopters. Another large entry is presidential air fleet logistics and management, including operation of the National Forest Guard, put at N283.85bn.

There is also a recurrent related take-off grant line for new MDAs at N41.12bn and a capital take-off grant line for 12 new MDAs, most in health and education, at N19.50bn, alongside other service-wide provisions such as pension increases due to consequential adjustment and payment of gratuity to civil servants.

Within the MDA level items, the five MDAs with the highest value of new projects, based on the figures provided, are the Budget Office of the Federation, the Federal Ministry of Transport headquarters, the National Library of Nigeria, the National Blood Service Commission, and the Sokoto Rima River Basin Development Authority.

The Budget Office of the Federation has the largest MDA level new project provision at N375bn for a multilateral or bilateral tied loan line for the Power Sector Recovery Operation, additional financing. This single item is larger than the combined new project allocations of most other MDAs listed.

As a share of the N844.49bn MDA total, the Budget Office provision accounts for about 44.41 per cent. As a share of the total new projects, including Service Wide Votes, it accounts for about 10.71 per cent.

The Federal Ministry of Transport headquarters has N210.53bn in new projects, made up of N68.50bn for consultancy services for the Lekki Ijebu Ode Ore Kajola railway and coastal railway, Badagry Apapa Tin Can, and N142.03bn for the construction of six bus terminals and transportation facilities in the six geopolitical zones under national public transportation.

The ministry’s two entries together represent about 24.93 per cent of the N844.49bn MDA new project total and about 6.01 per cent of the N3.50tn total, including Service Wide Votes.

The National Library of Nigeria has a new project provision of N24bn for structural renovation and space upgrade of the National Library of Nigeria across the six geopolitical zones. This is the third largest MDA new project amount in the list and accounts for about 2.84 per cent of the total MDA new projects.

The National Blood Service Commission has N15bn in new projects for the construction and equipping of a national blood service centre and strategic national blood reserve in Abuja, valued at N10bn, and the reconstruction or rehabilitation of NBSC state offices valued at N5bn. The combined total represents about 1.78 per cent of the MDA new project total.

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The Sokoto Rima River Basin Development Authority has N9.14bn in new projects. These include construction of solar mini grids in selected locations in the catchment area at N2bn, construction of all in one solar street lights as security lighting points at N1bn, construction of rural roads to selected rural communities at N3bn, and supply of water pumps for irrigation to Isa and Sabon Birni federal constituency at N140m.

Others include the supply of 3 inch solar powered water pumping machines to farmers in Kebbi State at N1bn, provision of small town water supply system with reticulation at N1bn, and provision of empowerment materials to support the livelihood of youths at N1bn. This portfolio accounts for about 1.08 per cent of the total MDA new projects.

Beyond the top five, the next tier of MDAs by size includes health and social sector institutions clustered around N5bn to N6.22bn per entity, as well as several teaching hospitals and medical centres.

The PUNCH further observed that N5.85bn in new projects is for vehicle purchases, led by N1.5bn for vehicles at FUT Iyin Ekiti, N600m at FUADSI, and N500m at JUTH.

Furnishing and office equipment account for N2.93bn, driven by N1.18bn for two medical complexes at NAUTH Nnewi, N435m at the Air Power Centre of Excellence, and N250m for a Pharmacy Council zonal office. Renovation and refurbishment total N29.88bn, dominated by the N24bn national library upgrade and N5bn for blood service offices.

Residential and staff accommodation projects reach N25.29bn, anchored by N16.48bn for Defence Headquarters facilities and N7bn for DSS housing.

The PUNCH further observed that this was not the first time the Federal Government had restricted the addition of new projects into the national budget.

In December 2024, The PUNCH reported that the Federal Government directed all Ministries, Departments, and Agencies to exclude new projects from their budget submissions for 2025 unless they can be linked to the completion of ongoing initiatives, according to the 2024 Federal Government Budget Call Circular.

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The 2024 Budget Call Circular clearly states that no new projects will be admitted into the 2025 capital budget unless MDAs can demonstrate that sufficient resources have been allocated to complete ongoing projects.

The document read, “Again, the thrust of the FGN’s capital expenditure programme in 2025 will be the completion of as many cardinal ongoing projects as possible, rather than starting new projects. Thus, MDAs are hereby advised that new projects will not be admitted into the capital budget for 2025 unless adequate provision has been made for the completion/work programme of all ongoing projects.”

Also, MDAs have been instructed to carefully scrutinise and justify their proposed projects and programmes, ensuring that these align with the country’s immediate needs and the government’s key development priorities.

These priorities, as set out in the circular, include national security, economy, education, health, agriculture, infrastructure, power and energy, as well as social safety nets, with a focus on women and youth empowerment.

However, it appears that MDAs often flout this directive without any scrutiny from the Budget Office of the Federation or the National Assembly.

The National President of the Nigerian Economic Society, Professor Adeola Adenikinju, earlier argued that the late budget presentation prevents the National Assembly from carrying out proper scrutiny.

Adenikinju said, “The 2026 budget should have been in the National Assembly for consultation so that we can keep to this January 1st thing. That makes our fiscal system predictable.”

The economist said the rush to approve budgets “does not allow for proper analysis” and prevents ministries and departments from fully defending their plans. He warned that the practice was creating a disorganised fiscal environment.

A development economist and Chief Executive of CSA Advisory, Dr Aliyu Ilias, told The PUNCH that the Federal Government has “fiscal discipline problems.”

He insisted that government performance on fiscal and budget discipline “for now has not done well” and suggested that the lapses were deliberate. “I am sure I want to say that it is intentional because you could have seen that this is becoming an error,” he said.

Ilias said the problem also rested with the National Assembly, which he accused of failing in its oversight duty.

He said the legislature was tolerating inefficiencies, adding that “The National Assembly is also failing, failing in the sense that it is their own responsibility to make sure that those things do not really fly.”

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Police comb forest after terrorists abduct NECO students in Borno

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The Borno State Police Command has deployed security operatives to Lassa community in Askira/Uba Local Government Area following the abduction of an unspecified number of students writing the National Examinations Council examinations by suspected terrorists.

PUNCH Online had earlier reported that the attackers stormed the school at about 9 a.m. on Monday, shooting sporadically before abducting students and women selling food items within the school premises.

Confirming the deployment to PUNCH Online, the spokesperson for the Borno State Police Command, Nahum Daso, said security operatives confronted the attackers, preventing a larger-scale abduction.

“Around 9 a.m. in the morning, ISWAP attacked Lassa Day Secondary School. They shot sporadically. An unspecified number of students have been abducted.

“Security forces confronted them. For now, we have an unspecified number of students who were abducted. The CP deployed the Area Commander in Askira/Uba. They are currently combing the bush,” Daso said.

The Special Adviser to Adamawa State Governor, Ahmadu Fintiri, on Media and Strategy, Mr Solomon Kwamagar, a resident of Lassa, also confirmed the incident to PUNCH Online on Monday morning.

He disclosed that the attackers arrived on motorcycles and invaded the school.

“Today is Lassa market day. I was informed that they came through the market on motorcycles and went to Government Day Secondary School, Lassa. They shot and killed one teacher and took away all the students who were in their classrooms,” he said.

Kwamagar added, “Lassa in Borno State is predominantly inhabited by my people, the Margi. We are in both Adamawa and Borno states. I am from Lassa, but I chose to reside in Madagali Local Government Area of Adamawa State.”

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He further said, “I’m still making contacts to ascertain the total number of students and teachers who were kidnapped from the school.”

Earlier, the President of the Borno South Youth Alliance, Samaila Kaigama, told PUNCH Online that the attackers wore military and forest guard uniforms.

“Yes. There was an attack on students writing NECO exams. The terrorists came around past nine. They passed the military checkpoint. They wore military and forest guard attire. They shot sporadically,” he said.

Kaigama said one teacher was killed while another sustained gunshot injuries.

“They killed one teacher from Chibok. They shot another, but not dead yet. They also kidnapped some students and women selling on the school premises. The numbers are not yet out,” he said.

When contacted, the Chairman of Askira/Uba Local Government Area, Mada Saidu, declined to comment.

“I am very busy now. We are in a situation,” he said.

Efforts to obtain comments from the state Commissioner for Information and Internal Security, Usman Tar, were unsuccessful as he neither answered calls nor responded to messages.

However, residents who spoke to PUNCH Online claimed that two teachers and one student were killed during the attack.

“They killed two teachers and one female student. The student was shot in her mouth,” a resident who requested anonymity said.

On May 16, PUNCH Online reported that 42 students and pupils were abducted after suspected Boko Haram terrorists attacked Mussa Primary and Junior Secondary School in Askira/Uba Local Government Area.

The senator representing Borno South, Ali Ndume, had said the abductees comprised four students of Government Day Secondary School, 28 primary school pupils and 10 children abducted from their homes.

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NASS sends state police bill to 36 states’ assemblies

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The National Assembly is set to transmit the Constitution Alteration Bill seeking the establishment of state police to the 36 state Houses of Assembly this week, marking the next critical stage of one of Nigeria’s most far-reaching security reforms.

The development comes days after the Senate passed the landmark constitutional amendment, with lawmakers now racing to secure the approval of at least 24 state legislatures before the bill can be transmitted to President Bola Tinubu for assent.

Chairman of the Senate Committee on Media and Publicity, Yemi Adaramodu, disclosed the development in an exclusive interview with The PUNCH on Sunday, saying all the necessary arrangements had been concluded for the transmission.

According to him, the state legislatures and governors were already awaiting the bill following consultations held ahead of its passage by the National Assembly.

“The bill for the creation of state police will get to the states this week. The states’ speakers have met and are awaiting the bill from the National Assembly.

“The state governors are expecting it too, even with their presence in the Senate chamber when the bill was being considered and passed,” Adaramodu said.

The planned transmission signals the beginning of the final constitutional hurdle for the proposed amendment, which requires endorsement by not less than two-thirds of the 36 state Houses of Assembly in line with Section 9 of the 1999 Constitution before it can become law.

Momentum has continued to build behind the proposal since the Senate approved the amendment after a clause-by-clause consideration of the report presented by the Senate Committee on the Review of the Constitution, chaired by Deputy Senate President Barau Jibrin.

The legislation seeks to establish a dual policing structure that will empower state governments to establish and maintain police services within their jurisdictions while preserving the constitutional responsibilities of the Nigeria Police Force over national security matters such as terrorism, border security, cybercrime, arms trafficking and other federal offences.

To address longstanding concerns over possible abuse by state governments, lawmakers incorporated several safeguards into the bill, including provisions prohibiting state police authorities from targeting individuals or groups for criticising governments and empowering the Federal Government to intervene in cases involving threats to national security, breakdown of public order or violations of fundamental human rights.

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The proposed reform has received unprecedented backing from governors, speakers of state legislatures and major political stakeholders across the country.

The Conference of Speakers of State Legislatures in Nigeria had earlier endorsed the bill, with its Chairman and Speaker of the Delta State House of Assembly, Emomotimi Guwor, assuring Nigerians that all state houses of assembly would give the proposal diligent consideration.

Several governors have also welcomed the amendment, describing it as a timely response to worsening insecurity across the federation.

Among them, Benue State Governor, Hyacinth Alia, described the Senate’s passage of the bill as a landmark step towards strengthening Nigeria’s security architecture, arguing that state police would possess a better understanding of local terrain and community dynamics, thereby improving intelligence gathering and response to criminal activities.

Similarly, the Forum of Progressive Speakers of State Legislatures under the All Progressives Congress pledged to facilitate speedy ratification in APC-controlled houses of assembly while promising robust oversight mechanisms to ensure professionalism and respect for human rights.

The Labour Party also threw its weight behind the proposal, describing the Senate’s action as a significant milestone in the quest to strengthen internal security through community-based policing.

Though it acknowledged concerns over possible abuse by governors, the party expressed confidence in the constitutional safeguards embedded in the amendment.

The proposal also attracted opposition from the Peoples Redemption Party, which questioned the timing of the initiative and urged Nigerians to reject it, arguing that the current administration lacks the credibility to oversee such a fundamental restructuring of the country’s policing system.

Despite the reservations expressed by critics, the planned transmission of the bill to the states this week is expected to trigger deliberations across the 36 Houses of Assembly, where lawmakers will conduct public hearings, stakeholder engagements and legislative scrutiny before voting on the constitutional amendment.

If at least 24 state assemblies endorse the proposal, it will pave the way for President Bola Tinubu’s assent, potentially ending decades of debate over the decentralisation of policing and ushering in what many stakeholders believe could be the most significant reform of Nigeria’s internal security architecture since the return to democratic rule in 1999.

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Meanwhile, the Senate on Sunday defended the passage of the state police bill, insisting that its passage, which 84 senators supported, is a response to Nigeria’s worsening security challenges.

The upper chamber said the bill emerged from years of consultations, public engagements, and broad national consensus, stressing that it would be wrong to delay the proposal for political calculations ahead of the 2027 general election.

The position comes amid growing debate over the constitutional amendment bill, with supporters arguing that decentralising policing will improve security at the grassroots, while critics fear that state police could be abused by governors to intimidate political opponents.

Defending the Senate’s decision in a statement issued by his media office on Sunday, the Leader of the Senate, Opeyemi Bamidele, said the proposal was “purely a child of necessity and not of political expediency as well as a product of national consensus and not of cynicism.”

He maintained that the establishment of state police had become a matter of urgent national importance that should not be sacrificed because of anyone’s political ambition.

According to him, the process leading to the passage of the bill did not begin recently but evolved through extensive constitutional review engagements involving key stakeholders across the country.

Despite some dissenting views, Bamidele said observations had shown that Nigerians largely welcomed the passage of the bill with the belief that it would significantly improve security at the sub-national level.

He said, “The state police proposal was part of memoranda submitted to the Senate Ad hoc Committee on the Review of the 1999 Constitution. The memorandum had been subjected to a rigorous process and multi-tiered consultation across the federation due to its sensitive nature.

“During this process, the National Assembly broadly consulted the executive, the Nigeria Governors’ Forum, the Conference of Speakers of the State Legislatures of Nigeria and the leadership of the Nigeria Police, among others.

“In July 2025, the National Assembly conducted public hearings in all geopolitical zones, and the participants overwhelmingly approved it.

“At each level of our consultation, nearly all stakeholders embraced the State Police Bill in the light of stark realities we are facing today.”

The Senate Leader said the Nigerian Police actively contributed to the drafting of the constitutional amendment by offering recommendations that helped lawmakers build safeguards against potential abuse of state police by political actors.

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According to him, those recommendations formed part of accountability and oversight mechanisms embedded in the legislation to ensure that state police operate within constitutional limits.

He added that the willingness of the Nigerian Police to support the proposal underscored its strategic importance in addressing insecurity at the local and state levels.

Beyond the contributions of the police hierarchy, Bamidele said the bill was subjected to extensive debates in both chambers of the National Assembly before its eventual passage.

He noted that support for the legislation cut across party lines.

He said: “Even though the APC is the majority, there are members of opposition parties – PDP, ADC, NDC and Labour Party – that exercised their discretion in favour of the Bill, mainly in the national interest and not on a parochial basis.

“In the Senate, for instance, 84 out of 109 members voted clause by clause in support of the Bill. This accounted for 77.06 per cent approval at the Senate alone.”

Bamidele argued that security should transcend political affiliations, noting that countries facing security threats often unite behind reforms aimed at strengthening national safety.

Globally, he said, security “is a collective public good that benefits citizenry across ethnic, political and religious divides.

“Political actors elsewhere always throw off their togas of partisanship and parochialism to support initiatives that will boost and reinforce national security.”

He, therefore, urged opposition parties to contribute constructive ideas that would strengthen peace and stability across the federation rather than oppose initiatives solely on political grounds.

Bamidele also challenged opposition parties and leaders to come forward with ideas that would deepen the peace and stability of the federation.

“Even when they disagree on some grounds, they are under obligations to provide credible and useful ideas that can make our nation better and greater. Unfortunately, they have not passed this critical test of opposition democracy,” Bamidele said.

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Chaos as flooding shuts Lagos airport temporary terminal

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There was chaos at the temporary terminal of the Murtala Muhammed International Airport, Lagos, on Sunday after heavy rainfall caused severe flooding at the facility.

The departure hall, boarding gates, airline temporary offices, and other sections of the makeshift terminal were submerged. The situation forced the Federal Airports Authority of Nigeria to shut the terminal abruptly, as airlines operating from the facility could no longer process passengers.

As a result of the flooding, airlines, including Air France-KLM, Ethiopian Airlines, and Fly Gabon, were relocated from the terminal. According to officials, the terminal’s powerhouse was also flooded, forcing the authorities to switch off electricity.

Consequently, all airlines operating from the facility were moved to Terminal Two of the MMIA. FAAN officials alleged that the flooding was caused by blocked drainage channels, which they attributed to the Chinese company currently reconstructing the old international terminal.The incident came just months after FAAN shut the old MMIA terminal for a major reconstruction project estimated to cost more than N600bn. A few months ago, a fire also broke out at the old terminal, damaging parts of the facility.

Sources said the ongoing reconstruction of the old terminal by the Chinese contractor has caused several disruptions at the airport.

Reacting to Sunday’s flooding, FAAN spokesperson Henry Agbebire confirmed the incident, attributing it to the ongoing construction work at the airport.

According to Agbebire, the construction temporarily affected the drainage system, resulting in flooding. He said, “It was the construction works that affected the drainage. And for operational reasons, we have moved airlines operating from that terminal to Terminal 2, and the development has not really affected their operations.

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“There were no cancellations at all. We have taken immediate action to fix that problem to the extent that it doesn’t happen again. You can rest assured of that.”

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