The 2026 federal budget has sparked fresh controversy after the presidential candidate of the African Democratic Congress (ADC), Atiku Abubakar, condemned the allocation of ₦22.15 billion for the construction, renovation, and furnishing of 106 palaces across Nigeria.
The criticism follows the release of a budget analysis by Tracka, a public accountability initiative of the BudgIT Foundation, which highlighted the palace projects as part of the 2026 Appropriation Act.
According to the report, several of the projects are being handled by Ministries, Departments, and Agencies (MDAs) that do not have the legal mandate to construct or renovate royal palaces. It also revealed that 11 projects worth about ₦5.85 billion have no clearly identified locations, raising concerns about transparency and public accountability.
Among the agencies assigned to execute the projects are the Federal Cooperative College in Ibadan, the Sheda Science and Technology Complex (SHESTCO), the Nigerian Building and Road Research Institute (NBRRI), the Agricultural Research Council of Nigeria, and the National Institute for Hospitality and Tourism (NIHOTOURS).
The report further noted that the allocations come at a time when Nigeria faces a ₦31.45 trillion budget deficit, rising debt obligations, and growing demands for increased investment in healthcare, education, and critical infrastructure.
In a statement issued through his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku described the allocation as a constitutional violation. He argued that matters relating to traditional institutions fall under the jurisdiction of state and local governments, not the Federal Government.
He also questioned why the budget does not clearly identify the palaces or communities expected to benefit from the projects.
According to Atiku, every legitimate public project in the national budget—including roads, schools, and hospitals—is usually accompanied by a specific location. He argued that the absence of such details for the palace projects raises serious transparency concerns and could make effective public oversight difficult.
The former vice president further accused the Tinubu administration of prioritising questionable spending while many Nigerians continue to grapple with economic hardship, high inflation, insecurity, and declining purchasing power.
He called on the Presidency, the Budget Office, and all relevant MDAs to publish the complete list of the 106 palace projects, their locations, the amount allocated to each one, the constitutional basis for the expenditure, and details of the procurement process.
As of the time of filing this report, the Federal Government had not publicly responded to Atiku’s allegations or the findings highlighted by Tracka.


