FG to spend N962.83bn on SUVs and empowerment amid rising debt burden

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The Federal Government is to spend N962.83 billion on procurement of Sport Utility Vehicles and empowerment projects as contained in the 2026 Appropriation Act, according to a review of the budget by civic technology organisation, Tracka.

The amount exceeded the combined allocations to seven federal ministries of Industry, Trade and Investment; Housing and Urban Development; Women Affairs; Justice; Livestock Development; Aviation and Aerospace Development; and Petroleum Resources in the 2026 budget.

Tracka said in its analysis of the 2026 Federal Government budget, the allocation comprised N15.13 billion for the procurement of 39 SUVs and N947.70 billion for 2,579 empowerment projects, bringing the total to N962.83 billion.

The organisation noted that the amount surpassed the combined N960.27 billion appropriated 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.

According to Tracka, the Ministry of Industry, Trade and Investment received N156.8 billion in the 2026 budget, Housing N145.3 billion, Women Affairs N169.39 billion, Justice N150.7 billion, Livestock Development N177.6 billion, Aviation and Aerospace Development N87.3 billion, while Petroleum Resources was allocated N73.1 billion.

The budget contains numerous allocations for the procurement of buses, tricycles, motorcycles, electric vehicles, sewing machines, fertilisers, vocational equipment, grants and other empowerment items across different agencies and regions.

Tracka noted that the 2026 budget is expected to be financed largely through borrowing.

The group expressed concern over what it described as a lack of transparency surrounding many of the empowerment projects.

“Yet, only 70 of the 2,579 empowerment projects have clearly identified implementation locations,” it lamented.

The civic organisation argued that the omission raised fundamental accountability questions regarding project implementation and oversight.

It asked, “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?”

Beyond the absence of project locations, Tracka said the projects were spread across 184 implementing agencies, including several institutions whose statutory mandates do not ordinarily cover empowerment programmes.

According to the civic organisation, the Federal Cooperative College, Oji River, was assigned 393 projects worth N127.1 billion, while the National Agricultural Development Fund was allocated six projects valued at N89.5 billion.

The Federal College of Horticulture, Dadin-Kowa, Gombe, received 216 projects worth N88.1 billion, while the Federal Cooperative College, Ibadan, was assigned 94 projects valued at N36.9 billion.

A review of the budget document based on Tracka’s analysis shows that the largest single empowerment allocation was N89.09 billion for the Renewed Hope Fertiliser Support Programme under the National Agricultural Development Fund.

Other high-value allocations 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 programmes under the Federal Ministry of Youth Development, and another N14 billion for youth empowerment and medical outreach under the Ministry of Humanitarian Affairs and Poverty Alleviation.

Tracka stressed that empowerment initiatives are not inherently problematic, saying they could produce meaningful social and economic benefits if properly designed and implemented.

It said, “Let us be clear, 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.”

It warned that experience had shown that many poorly designed programmes had become channels for political patronage.

“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.

“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,” the organisation stated.

“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,” it stated.

The organisation further called for greater transparency in future budget preparation and implementation.

“A budget should not only allocate resources, it should also inspire public confidence.

“Every budget item should have a clear purpose, a defined location, an implementing agency with the legal mandate to deliver it, identifiable beneficiaries, and measurable outcomes,” Tracka said.

The Federal Government increased its borrowing plan for 2026 to N29.20 trillion following an expansion in the proposed budget size.

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