The Federal Government has allocated N962.83 billion for the procurement of Sport Utility Vehicles (SUVs) and empowerment projects in the 2026 Appropriation Act—an amount that exceeds the combined budgets of seven major federal ministries, according to civic technology organisation Tracka.
Tracka’s analysis reveals that the allocation includes N15.13 billion for the purchase of 39 SUVs and N947.70 billion for 2,579 empowerment projects. This sum surpasses the N960.27 billion collectively appropriated to the ministries of Industry, Trade and Investment; Housing and Urban Development; Women Affairs; Justice; Livestock Development; Aviation and Aerospace Development; and Petroleum Resources.
Breakdown of ministry allocations in the 2026 budget:
- Industry, Trade and Investment: N156.8bn
- Housing and Urban Development: N145.3bn
- Women Affairs: N169.39bn
- Justice: N150.7bn
- Livestock Development: N177.6bn
- Aviation and Aerospace Development: N87.3bn
- Petroleum Resources: N73.1bn
Transparency Concerns and Project Oversight
Tracka expressed alarm at the lack of transparency in many empowerment projects. Of the 2,579 projects, only 70 have clearly identified implementation locations, raising serious questions about accountability and effective oversight. The group queried, “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?”
Moreover, the projects are distributed across 184 agencies, including some whose mandates do not cover empowerment initiatives. Notable assignments include:
- Federal Cooperative College, Oji River: 393 projects worth N127.1bn
- National Agricultural Development Fund: 6 projects valued at N89.5bn
- Federal College of Horticulture, Dadin-Kowa, Gombe: 216 projects worth N88.1bn
- Federal Cooperative College, Ibadan: 94 projects valued at N36.9bn
The largest single empowerment allocation is N89.09bn for the Renewed Hope Fertiliser Support Programme under the National Agricultural Development Fund. Other significant allocations include N14bn each for economic empowerment equipment and utility vehicles (Federal Cooperative College, Oji River), youth empowerment (Federal Ministry of Youth Development), and youth empowerment and medical outreach (Ministry of Humanitarian Affairs and Poverty Alleviation).
Allocations also cover buses, tricycles, motorcycles, electric vehicles, sewing machines, fertilisers, vocational equipment, grants, and other items across various agencies and regions.
Potential for Abuse, Need for Reform
While Tracka acknowledges that well-designed empowerment programmes can benefit society, it cautions that, in practice, many have become vehicles for political patronage and lack transparency. “When projects have no clear location, no transparent beneficiary selection process, and are assigned to agencies without proper mandates, public confidence is eroded and accountability becomes difficult,” the group stated.
Tracka also raised concerns about the government’s fiscal position, noting that the 2026 budget will be financed mainly through borrowing. With the budget deficit projected at 46%, Tracka urged that every naira be spent on projects with clear development outcomes, measurable impact, and transparent oversight.
The organisation called for greater transparency in future budgets, stressing that every line item should have a clear purpose, location, implementing agency, identifiable beneficiaries, and measurable outcomes.
Mounting Debt and Calls for Accountability
The PUNCH previously reported that the Federal Government increased its borrowing plan for 2026 to N29.2 trillion due to a larger proposed budget. This is up from an earlier projection of N17.89 trillion, with debt financing set at N29.2 trillion, total spending at N68.32 trillion, and projected revenues at N36.87 trillion—leaving a budget deficit of N31.46 trillion.
The Federal Government also raised N5.08 trillion from the domestic bond market in the first half of 2026, a 77.8% increase compared to the same period in 2025.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, warned that high deficits and rising debt levels risk undermining macroeconomic stability. He stressed the importance of leveraging improved revenue to reduce deficits and debt exposure to maintain economic stability.
Former Vice President Atiku Abubakar has challenged the government to account for an estimated N7.98 trillion oil revenue windfall, questioning the rationale for continued heavy borrowing despite higher-than-expected crude oil prices. Atiku called for full disclosure of excess crude sales and greater fiscal transparency.
Timi Frank, former Deputy National Publicity Secretary of the APC, echoed these concerns, urging greater transparency, accountability, and oversight in budget management. He said recent revelations and controversies have deepened doubts about the credibility of the budgeting process.
Experts Question Allocation Priorities
Economists also questioned the spending priorities. Professor Sheriffdeen Tella of Olabisi Onabanjo University cautioned that empowerment spending should prioritise domestic production, warning that importing vehicles and equipment misses opportunities to stimulate the local economy.
“Any empowerment should be based on what we produce here. Spending empowerment money to import things simply means the money is not being used in Nigeria and cannot positively impact our economy,” Tella said. He urged the government to ensure that borrowed funds support domestic industry and job creation.
Lagos-based economist Adewale Abimbola criticised the nearly N1trn allocation to SUVs and empowerment projects amid heavy borrowing, calling it poor fiscal prioritisation. He argued that investment in infrastructure and human capital delivers more sustainable growth, and warned that empowerment programmes must be better targeted and monitored to avoid waste and abuse.
Abimbola also highlighted the need for projects to be assigned to agencies with the appropriate mandates and called for stronger accountability measures in constituency and empowerment projects.
