NEWS
FG Sets Aside ₦962.83bn for SUVs, Empowerment Projects in 2026 Budget Amid Debt Concerns
FG Sets Aside ₦962.83bn for SUVs, Empowerment Projects in 2026 Budget Amid Debt Concerns
The Federal Government has earmarked ₦962.83 billion in the 2026 Appropriation Act for the procurement of Sport Utility Vehicles (SUVs) and the implementation of empowerment projects, a move that has sparked fresh debate over fiscal priorities as Nigeria grapples with rising public debt and an expanded borrowing plan.
DONWLOAD OUR APP
TO GET REAL TIME NEWS
The allocation consists of ₦15.13 billion for the purchase of 39 SUVs and ₦947.70 billion for the execution of 2,579 empowerment projects across the country.
An analysis of the 2026 budget by civic technology organisation, Tracka, revealed that the combined allocation for the SUVs and empowerment programmes is higher than the total ₦960.27 billion appropriated to seven key federal ministries.
According to the organisation’s findings, the Federal Ministry of Industry, Trade and Investment received ₦156.8 billion, while the Ministry of Housing and Urban Development was allocated ₦145.3 billion. The Ministry of Women Affairs got ₦169.39 billion, the Ministry of Justice received ₦150.7 billion, the Ministry of Livestock Development was allocated ₦177.6 billion, the Ministry of Aviation and Aerospace Development received ₦87.3 billion, while the Ministry of Petroleum Resources was allocated ₦73.1 billion.
Tracka also raised concerns over what it described as inadequate transparency in the implementation of the empowerment programmes, disclosing that only 70 out of the 2,579 projects have clearly identified locations.
The organisation questioned how citizens, civil society groups and oversight institutions would effectively monitor projects without clearly stated locations.
“How can citizens track projects with no stated location? How can oversight institutions verify implementation? How can taxpayers know who ultimately benefits from these allocations?“ Tracka queried.
According to the group’s analysis, the empowerment projects are distributed across 184 implementing agencies, including institutions that are not ordinarily mandated to execute such programmes.
Among the agencies with the largest allocations, the Federal Cooperative College, Oji River, was assigned 393 projects valued at ₦127.1 billion, while the National Agricultural Development Fund received six projects worth ₦89.5 billion.
Similarly, the Federal College of Horticulture, Dadin-Kowa, Gombe State, was allocated 216 projects valued at ₦88.1 billion, while the Federal Cooperative College, Ibadan, received 94 projects worth ₦36.9 billion.
Further scrutiny of the budget showed that the single largest empowerment allocation is ₦89.09 billion for the Renewed Hope Fertiliser Support Programme under the National Agricultural Development Fund.
Other major allocations include ₦14 billion for the procurement and distribution of empowerment equipment and utility vehicles through the Federal Cooperative College, Oji River; another ₦14 billion for youth empowerment under the Federal Ministry of Youth Development; and ₦14 billion for youth empowerment and medical outreach under the Federal Ministry of Humanitarian Affairs and Poverty Alleviation.
The budget also contains provisions for the procurement and distribution of buses, tricycles, motorcycles, electric vehicles, sewing machines, fertilisers, vocational equipment, grants and several other empowerment items through different agencies across various parts of the country.
While acknowledging that empowerment initiatives can improve livelihoods when properly designed and implemented, Tracka warned that poorly structured programmes often become instruments of political patronage rather than genuine economic development.
“There is nothing inherently wrong with empowerment programmes. When well-designed and transparently implemented, they can improve livelihoods, create economic opportunities and support vulnerable Nigerians,“ the organisation stated.
It, however, cautioned that previous experience has shown that many poorly defined empowerment projects have evolved into channels for rewarding political loyalists instead of delivering broad-based benefits to ordinary Nigerians.
“When projects have no clear location, no transparent beneficiary selection process, and are assigned to agencies without the appropriate mandate, public confidence is eroded, and accountability becomes difficult,“ it added.
Tracka further linked its concerns to the Federal Government’s current fiscal position, noting that the 2026 budget is projected to be financed with a deficit of about 46 per cent, meaning that a significant share of government expenditure will be funded through borrowing.
“This concern is even more pressing given that the 2026 Budget is projected to be financed with a deficit of about 46 per cent. At a time when government is borrowing heavily to fund public expenditure, every naira should be directed toward investments with clear development outcomes, measurable impact, and value for money, not opaque allocations that citizens cannot effectively track,“ the organisation said.
Tracka called on the Federal Government to improve transparency in future budgets by ensuring that every project has a clearly defined purpose, location, implementing agency, identifiable beneficiaries and measurable outcomes.
The concerns come as the Federal Government recently increased its 2026 borrowing plan to ₦29.20 trillion, up from the earlier projection of ₦17.89 trillion, after expanding the proposed budget to ₦68.32 trillion against projected revenues of ₦36.87 trillion, resulting in a fiscal deficit of ₦31.46 trillion.
Economists have also questioned the spending pattern and urged the government to prioritise investments capable of generating sustainable economic growth.
Professor of Economics at Olabisi Onabanjo University, Sheriffdeen Tella, advised that empowerment programmes should focus on supporting local production rather than encouraging importation.
“Any empowerment should be based on what we produce here. Spending empowerment money to import things simply means that the money is not here, it is not being used here, and it cannot have much positive impact on our economy,“ he said.
Also commenting, Lagos-based economist, Adewale Abimbola, described the allocation as evidence of poor fiscal prioritisation, arguing that increased investments in infrastructure and human capital development would deliver stronger long-term economic returns.
“It shows a lack of prioritisation on the part of the Federal Government. It paints the Federal Government as a poor manager of financial resources,“ Abimbola said.
He further stressed that empowerment programmes should be carefully designed and transparently implemented to ensure they reach genuinely vulnerable Nigerians instead of becoming channels for waste, abuse and political patronage.
