Fresh scrutiny has greeted the Federal Government's 2026 budget after an analysis by civic technology organisation, Tracka, revealed that nearly N1 trillion has been allocated for empowerment programmes and the purchase of Sport Utility Vehicles (SUVs), despite the government's growing dependence on borrowing to finance public spending.
According to Tracka, the 2026 Appropriation Act earmarks N962.83 billion for the two categories, comprising N947.70 billion for 2,579 empowerment projects and N15.13 billion for the acquisition of 39 SUVs.
The organisation noted that the allocation is larger than the combined budgets of seven federal ministries, which together received N960.27 billion.
The ministries include Industry, Trade and Investment (N156.8 billion), Housing and Urban Development (N145.3 billion), Women Affairs (N169.39 billion), Justice (N150.7 billion), Livestock Development (N177.6 billion), Aviation and Aerospace Development (N87.3 billion), and Petroleum Resources (N73.1 billion).
Tracka, however, raised concerns over what it described as weak transparency in the implementation of the empowerment projects.
Its review found that only 70 of the 2,579 projects contained clearly identified implementation locations, making it difficult for citizens and oversight bodies to monitor execution.
"Only 70 of the 2,579 empowerment projects have clearly identified implementation locations," the organisation stated, asking how projects without specified locations could be tracked or verified.
The civic group also questioned why empowerment projects were distributed across 184 implementing agencies, including several institutions whose statutory mandates are unrelated to such programmes.
Among the biggest beneficiaries is the Federal Cooperative College, Oji River, which was assigned 393 projects worth N127.1 billion. The National Agricultural Development Fund received six projects valued at N89.5 billion, while the Federal College of Horticulture, Dadin-Kowa, Gombe, was allocated 216 projects worth N88.1 billion. The Federal Cooperative College, Ibadan, was assigned 94 projects with a combined value of N36.9 billion.
Budget details further showed that the largest single allocation—N89.09 billion—was approved for the Renewed Hope Fertiliser Support Programme under the National Agricultural Development Fund.
Other notable provisions include N14 billion for the procurement and distribution of economic empowerment equipment and utility vehicles through the Federal Cooperative College, Oji River; N14 billion for youth empowerment under the Ministry of Youth Development; and another N14 billion for youth empowerment and medical outreach under the Ministry of Humanitarian Affairs and Poverty Alleviation.
The budget also contains allocations for buses, motorcycles, tricycles, electric vehicles, sewing machines, fertilisers, vocational equipment, grants and other empowerment items.
While acknowledging that empowerment programmes can improve livelihoods if properly managed, Tracka warned that poorly structured initiatives have often become vehicles for political patronage rather than genuine economic development.
It argued that projects lacking clear locations, transparent beneficiary selection processes and appropriate implementing agencies undermine public confidence and weaken accountability.
The organisation also linked its concerns to Nigeria's fiscal outlook, noting that the 2026 budget is projected to be financed with a deficit of about 46 per cent.
It maintained that, at a time of rising public debt, government spending should prioritise projects with measurable development outcomes instead of allocations that are difficult to monitor.
The concerns come against the backdrop of the Federal Government's revised borrowing plan of N29.20 trillion for 2026, up from the earlier projection of N17.89 trillion, following an increase in total proposed expenditure.
The fiscal framework projects total spending of N68.32 trillion against expected revenue of N36.87 trillion, leaving a deficit of N31.46 trillion.
Data from the Debt Management Office also show that the Federal Government raised N5.08 trillion through domestic bond issuances in the first half of 2026, representing a 77.8 per cent increase over the N2.86 trillion raised during the same period in 2025.
Reacting to the growing debt profile, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, cautioned that rising deficits and debt could threaten Nigeria's recent macroeconomic gains.
He warned that excessive borrowing could worsen inflationary pressures and weaken exchange rate stability if not carefully managed, urging the government to use improved revenue performance to reduce borrowing.
Former Vice President and African Democratic Congress presidential candidate, Atiku Abubakar, also questioned the government's borrowing strategy, asking it to explain what he described as an estimated N7.98 trillion oil revenue windfall.
In a statement issued by his media aide, Phrank Shaibu, Atiku argued that with crude oil prices trading above the 2026 budget benchmark, the government should disclose how the additional oil revenues had been utilised instead of resorting to aggressive domestic borrowing.
Similarly, former APC Deputy National Publicity Secretary, Timi Frank, called for greater transparency in the budgeting process, urging the National Assembly to intensify its oversight of public spending amid allegations of inflated allocations and questionable budget provisions.
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