FG’s N30bn Palace, Worship Centre Budget Triggers Fresh Spending Debate

Fresh scrutiny has greeted the 2026 Federal Government budget following the discovery that N30.15 billion has been allocated for the construction, renovation and furnishing of traditional rulers’ palaces, as well as church- and mosque-related projects.

The allocation comes at a time of mounting fiscal pressures and increasing calls for improved funding of critical sectors such as healthcare and education.
According to an analysis by Tracka, the accountability initiative of the BudgIT Foundation, N22.15 billion has been earmarked for 106 palace projects nationwide, while another N8 billion is designated for the construction, rehabilitation and support of churches and mosques. The findings have intensified debate over government spending priorities, especially as Nigeria faces a projected N31.45 trillion budget deficit, rising debt obligations and persistent funding gaps in essential public services.
Tracka disclosed that the religious allocations include N1.91 billion for seven church-related projects and N6.14 billion for 52 mosque projects. These projects cover the construction and rehabilitation of worship centres, installation of solar power systems, drilling of boreholes, provision of imam residences, Islamiyya school facilities, carpets and church musical equipment. Among the largest allocations are N1 billion for musical and cultural equipment for churches in Abia State and another N1 billion for solar installations in mosques in Zamfara State.
The review also raised concerns over accountability in the execution of palace projects. Tracka noted that 11 palace projects valued at N5.85 billion have no clearly identified locations, making independent monitoring difficult. It further revealed that the projects were assigned to 45 Ministries, Departments and Agencies (MDAs), none of which has the statutory responsibility for constructing or renovating traditional rulers’ palaces.
Instead, agencies whose core mandates relate to agriculture, science, health, research and tourism were listed as implementing bodies. The Federal Cooperative College, Ibadan, is expected to execute palace-related projects worth more than N2.6 billion, while the Sheda Science and Technology Complex (SHESTCO) received N1.54 billion to modernise selected heritage palaces across the country.
Similarly, the Nigerian Building and Road Research Institute (NBRRI) was assigned projects worth N3.92 billion, including palace halls, pavilions and solar installations in several states. Other agencies involved include the Agricultural Research Council of Nigeria, National Horticultural Research Institute, Federal Institute of Industrial Research (FIIRO), National Productivity Centre, National Directorate of Employment, National Oil Spill Detection and Response Agency (NOSDRA), National Institute for Hospitality and Tourism, and the National Institute for Cancer Research and Treatment (NICRAT).
Reacting to one of the controversial allocations, Deputy Speaker of the House of Representatives, Benjamin Kalu, defended the N1 billion provision for churches in his Bende Federal Constituency. In a statement issued by his Chief Press Secretary, Levinus Nwabughiogu, Kalu explained that the project is intended as a youth development and value reorientation programme rather than simply the purchase of musical equipment.
He said the initiative would leverage faith-based organisations to promote moral values, mentor young people and address social challenges such as drug abuse, sexual offences and violent crime. According to him, after statutory deductions, about N780 million would be available for implementation, with approximately 130 churches expected to benefit in the first phase. He also clarified that no funds have been released because the 2026 budget is yet to take effect and added that his office has initiated a corrigendum to correct what it described as an inaccurate budget description.
Meanwhile, analysts argue that the N8 billion earmarked for religious projects could have a greater impact if redirected to healthcare. Based on current market prices for medical equipment, the amount could provide essential facilities for between 160 and 230 primary healthcare centres, including ultrasound machines, laboratory analysers, patient monitors, oxygen concentrators, delivery beds and other critical medical equipment.