FG Earmarks N962.8bn for Empowerment Projects, SUVs Amid Rising Borrowing Concerns

The Federal Government has allocated N962.83 billion for empowerment projects and the procurement of sport utility vehicles (SUVs) in the 2026 Appropriation Act, a figure that exceeds the combined budgets of seven key federal ministries, according to an analysis by civic technology organisation, Tracka.

Tracka’s review of the 2026 budget showed that N947.70 billion was earmarked for 2,579 empowerment projects, while N15.13 billion was set aside for the procurement of 39 SUVs, bringing the total allocation to N962.83 billion.

According to the organisation, the amount is higher than the combined N960.27 billion allocated to the Federal Ministries of Industry, Trade and Investment; Housing and Urban Development; Women Affairs; Justice; Livestock Development; Aviation and Aerospace Development; and Petroleum Resources.

The budget allocates N177.6 billion to the Ministry of Livestock Development, N169.39 billion to the Ministry of Women Affairs, N156.8 billion to the Ministry of Industry, Trade and Investment, N150.7 billion to the Ministry of Justice, N145.3 billion to Housing and Urban Development, N87.3 billion to Aviation and Aerospace Development, and N73.1 billion to Petroleum Resources.

Transparency concerns over empowerment projects

Tracka raised concerns over what it described as weak transparency in the design of many empowerment projects, noting that only 70 of the 2,579 projects have clearly identified implementation locations.

The organization questioned how citizens and oversight institutions would monitor projects without specified locations or identifiable beneficiaries.

“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 asked.

It also noted that the projects were distributed across 184 implementing agencies, including several institutions whose statutory mandates do not typically include empowerment programmes.

Among the largest allocations, the Federal Cooperative College, Oji River, was assigned 393 projects worth N127.1 billion, while the National Agricultural Development Fund received six projects valued at N89.5 billion. The Federal College of Horticulture, Dadin-Kowa, Gombe, was allocated 216 projects worth N88.1 billion, while the Federal Cooperative College, Ibadan, received 94 projects valued at N36.9 billion.

The single largest empowerment allocation is N89.09 billion for the Renewed Hope Fertilizer Support Program under the National Agricultural Development Fund.

Other major provisions include N14 billion each for economic empowerment equipment and utility vehicles through the Federal Cooperative College, Oji River; youth empowerment programmed under the Federal Ministry of Youth Development; and youth empowerment and medical outreach under the Ministry of Humanitarian Affairs and Poverty Alleviation.

The budget also provides funding for buses, tricycles, motorcycles, electric vehicles, sewing machines, fertilizer’s, vocational equipment, grants and other empowerment items across various agencies.

While acknowledging that empowerment initiatives can improve livelihoods when properly implemented, Tracka warned that poorly designed programs often become vehicles for political patronage rather than broad-based economic development.

“Experience over the years has shown that many poorly defined empowerment projects have become vehicles for political patronage, rewarding loyalists rather than delivering broad-based benefits to citizens,” the organization said.

Borrowing fuels fiscal concerns

Tracka linked its concerns to the government’s fiscal position, noting that the 2026 budget will be financed largely through borrowing.

The group observed that with a projected fiscal deficit of about 46 per cent, every budget allocation should demonstrate clear development outcomes, measurable impact and value for money.

The concerns come after the Federal Government increased its planned borrowing for 2026 to N29.20 trillion, up from an earlier projection of N17.89 trillion, following an expansion of the proposed budget.

Under the revised fiscal framework, total expenditure is estimated at N68.32 trillion, while projected revenue stands at N36.87 trillion, leaving a deficit of N31.46 trillion.

The government also raised N5.08 trillion from the domestic bond market during the first half of 2026, representing a 77.8 per cent increase from the N2.86 trillion raised during the same period in 2025.

Economists urge better spending priorities

Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, warned that rising deficits and debt could undermine Nigeria’s recent macroeconomic gains.

He urged the government to leverage improving revenues to reduce borrowing and safeguard fiscal sustainability, cautioning that excessive debt could trigger renewed inflationary and exchange rate pressures.

Similarly, economist and Olabisi Onabanjo University professor Sheriffdeen Tella argued that empowerment spending should prioritize locally manufactured goods to maximize economic benefits.

He warned that importing vehicles and empowerment items with borrowed funds would limit job creation and weaken the impact of government spending on the domestic economy.

Lagos-based economist Adewale Abimbola also questioned the spending priorities, saying allocating nearly N1 trillion to empowerment programs and SUVs while increasing borrowing could undermine confidence in the government’s fiscal management.

He maintained that investments in infrastructure and human capital would deliver stronger long-term economic returns and urged the government to strengthen accountability mechanisms to ensure empowerment programs reach vulnerable Nigerians rather than becoming channels for waste or political patronage.