Federal Government Sets Aside ₦22.15bn for 106 Palace Projects, Sparking Widespread Criticism

The Federal Government has earmarked ₦22.15 billion in the proposed 2026 budget for the construction, renovation and furnishing of 106 royal palaces across the country, a move that has triggered widespread criticism over spending priorities, transparency and constitutional responsibility.

A detailed review of the budget by public accountability organisation Tracka, released on Wednesday, July 22, 2026, revealed what it described as significant accountability concerns. According to the organisation, 11 palace projects valued at ₦5.85 billion have no clearly identified physical locations, making them difficult for citizens and oversight bodies to monitor.

The review also found that 45 Ministries, Departments and Agencies (MDAs) have been designated to execute the palace projects, despite many of them having no statutory responsibility for constructing or renovating royal palaces. Instead of assigning the projects to agencies with infrastructure mandates, the Federal Government distributed them among research institutes, agricultural colleges, specialised hospitals and science agencies.

An examination of the budget by SaharaReporters showed that billions of naira allocated for palace-related projects were channelled through institutions whose primary responsibilities lie in agriculture, scientific research, healthcare, education and industrial development.

Among the largest allocations is ₦2.661 billion assigned to the Federal Cooperative College, Ibadan, under the Federal Ministry of Agriculture and Food Security, for the renovation of community halls and palaces in selected communities. The same institution also received ₦350 million for palace projects across six local government areas in Ekiti South and another ₦210 million for similar projects in Ondo South.

Similarly, the Sheda Science and Technology Complex (SHESTCO) in Abuja was allocated ₦1.54 billion to modernise and furnish selected national heritage palaces across Nigeria, while the Nigerian Building and Road Research Institute (NBRRI) received projects worth ₦3.92 billion, including funding for palace halls, pavilions, solar power installations and renovation works in Lagos, Ekiti, Kogi and Nasarawa states.

Other research and educational institutions listed as implementing agencies include the Agricultural Research Council of Nigeria, National Horticultural Research Institute, Nigeria Stored Products Research Institute, Federal Cooperative College, Oji River, National Cereals Research Institute, Federal College of Land Resources Technology, Cocoa Research Institute of Nigeria, Federal College of Horticulture, and the Federal Institute of Industrial Research, Oshodi (FIIRO), all of which received allocations for palace-related projects spread across different states.

The budget also assigned palace projects to agencies whose mandates focus on healthcare, employment, environmental protection and technology. Among them are the National Institute for Cancer Research and Treatment (NICRAT), National Veterinary Research Institute, National Directorate of Employment (NDE), National Centre for Technology Management, National Oil Spill Detection and Response Agency (NOSDRA), Energy Commission of Nigeria, National Productivity Centre, Border Communities Development Agency, and even the Federal Neuro-Psychiatric Hospital, Dawanau, which was allocated ₦42 million for palace construction and renovation.

The revelations have generated intense public debate, particularly as the proposed 2026 budget carries a projected ₦31.45 trillion fiscal deficit, while many Nigerians continue to grapple with rising inflation, deteriorating infrastructure, inadequate healthcare services and worsening economic conditions.

Critics argue that under Nigeria's constitutional framework, the construction and maintenance of traditional institutions and community infrastructure primarily fall within the responsibilities of state and local governments rather than the Federal Government.

Reacting to the findings, Tracka questioned whether it was appropriate for the Federal Government to finance projects that are largely local in nature when constitutional provisions already assign such responsibilities to subnational governments.

"At a time of rising debt and limited fiscal space, should the Federal Government fund projects that are largely local in nature, while states and local governments constitutionally exist to address many community-level needs?" the organisation asked in a post on X.

Tracka stressed that its concerns were not directed at the importance of Nigeria's traditional institutions but at ensuring that public spending aligns with constitutional responsibilities, institutional mandates and national development priorities. The organisation warned that the federal budget should not become a vehicle for financing projects outside the legal responsibilities of the agencies implementing them.

Public affairs analysts have also raised concerns that the inclusion of palace projects in the budgets of agencies dedicated to cancer research, agriculture, science and technology could be an indication of constituency project insertions designed to channel public funds through institutions with no direct connection to the projects. According to the analysts, the practice raises fresh questions about transparency, accountability and the effective use of public resources at a time of mounting fiscal pressure on the country's economy.