The Federal Government’s proposed 2026 budget has come under fresh scrutiny following revelations that it earmarked N22.15 billion for the construction, renovation and furnishing of 106 palace-related projects across the country, despite concerns over the constitutional responsibilities of the agencies implementing the projects.
An analysis of the budget by civic technology organisation, Tracka, showed that the palace projects include the construction, renovation, rehabilitation and furnishing of traditional rulers’ palaces, palace halls, community halls, pavilions and the installation of solar power systems in several communities nationwide.
However, the organisation raised concerns over transparency and accountability, noting that 11 palace projects valued at N5.85 billion have no identifiable locations, making public monitoring and project verification difficult.
Tracka also questioned why 45 federal Ministries, Departments and Agencies (MDAs), none of which has the statutory mandate to build or renovate palaces, were assigned responsibility for executing the projects.
According to the budget review, the largest allocation is N2.66 billion for the renovation of community halls and palaces in selected central communities in Lagos State under the Federal Cooperative College, Ibadan, supervised by the Federal Ministry of Agriculture and Food Security.
Another N1.54 billion was budgeted for the modernisation and furnishing of selected national heritage palaces across Nigeria under the Sheda Science and Technology Complex, while N1 billion was allocated for the construction of pavilions, landscaping and dedicated solar power facilities at Oluyin Palace Community Recreation Ground in Iyin Ekiti.
The budget also provides N750 million for the completion and furnishing of four palaces in Kogi State, N700 million for the construction and rehabilitation of palaces in Plateau State, and N595 million for the construction of palace houses for chiefs in selected farming communities in Delta State.
Other allocations include N560 million for the renovation of emirs’ palaces in Niger State, N525 million for the completion and furnishing of a community and palace hall with solar facilities in Ojo, Lagos State, N500 million for the rehabilitation of several first-class traditional rulers’ palaces in Ondo State, and N400 million for the construction of a traditional rulers’ palace in Akwa Ibom State.
Several additional palace projects ranging between N140 million and N350 million are spread across states including Ogun, Ekiti, Kwara, Kaduna, Edo, Kogi, Delta, Nasarawa, Rivers, Osun, Adamawa, Sokoto, Yobe and Plateau.
Tracka observed that many of the implementing agencies appear unrelated to the nature of the projects.
Among the agencies assigned palace construction responsibilities are the Nigerian Building and Road Research Institute (NBRRI) with projects worth about N3.92 billion, the Federal Cooperative College, Eleyele, Ibadan with N3.29 billion, the Sheda Science and Technology Complex with N1.54 billion, the National Cereals Research Institute, the Industrial Arbitration Panel, the National Oil Spill Detection and Response Agency (NOSDRA) and even the Federal Neuro-Psychiatric Hospital, Dawanau.
According to Tracka, assigning palace construction projects to agencies whose statutory mandates are unrelated to infrastructure development raises questions about budget discipline and institutional accountability.
The organisation argued that while traditional institutions remain important to Nigeria’s cultural heritage and community governance, financing palace projects through federal agencies whose legal mandates do not cover such responsibilities weakens transparency and undermines effective public financial management.
It further questioned whether the Federal Government should continue funding projects that are largely local in nature at a time when Nigeria faces mounting public debt, limited fiscal space and competing development priorities.
The group maintained that state and local governments were constitutionally established to address many community-level infrastructure needs and should play a more prominent role in funding such projects.
Tracka stressed that the issue is not about diminishing the relevance of traditional institutions but ensuring that public spending aligns with constitutional responsibilities, statutory mandates and national development priorities.
It noted that budgets should serve as instruments for delivering public value rather than becoming vehicles for financing projects outside the core responsibilities of implementing institutions.
The organisation called for greater transparency in the budgeting process, proper project location disclosure and stricter adherence to institutional mandates to improve accountability.
It added that Nigeria’s budget should remain lawful, transparent and development-driven, especially as government continues efforts to strengthen fiscal sustainability and improve public confidence in the management of public resources.
