The administration of President Bola Ahmed Tinubu has come under mounting criticism following revelations that the Federal Government set aside a staggering ₦22.15 billion in the 2026 Appropriation Act for the construction, renovation and furnishing of 106 royal palaces across the country, despite widespread concerns that the projects fall outside the constitutional responsibilities of the Federal Government.
An extensive review of the 2026 budget by civic accountability organisation Tracka exposed what observers have described as serious accountability lapses, revealing that 11 palace projects valued at ₦5.85 billion have no identifiable locations, making public tracking, verification and oversight virtually impossible.
The findings have further ignited controversy after it emerged that 45 Ministries, Departments and Agencies (MDAs) assigned to execute the palace projects have no legal or statutory mandate to construct or renovate royal palaces.
Rather than routing the projects through agencies responsible for public infrastructure, the Tinubu administration allegedly channelled billions of naira through federal research institutes, agricultural colleges, science establishments and specialised health institutions, a development critics say raises troubling questions about transparency, procurement processes and budget implementation.
Among the most controversial allocations is a ₦2.661 billion contract awarded 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 in Lagos. The same institution also received ₦350 million for palace projects in Ekiti South and ₦210 million for similar projects in Ondo South.
The Sheda Science and Technology Complex (SHESTCO), Abuja, was allocated ₦1.54 billion for the modernisation and furnishing of selected national heritage palaces across Nigeria, while the Nigerian Building and Road Research Institute (NBRRI) received projects worth about ₦3.92 billion covering palace halls, solar installations and royal palaces in Lagos, Ekiti, Kogi and Nasarawa states.
Several other agencies with mandates unrelated to traditional institutions were also assigned palace projects. They include the Agricultural Research Council of Nigeria, National Institute for Hospitality and Tourism (NIHOTOURS), National Horticultural Research Institute, Nigeria Stored Products Research Institute, Federal Cooperative College, Oji River, National Cereals Research Institute, Industrial Arbitration Panel, Border Communities Development Agency, Federal College of Land Resources Technology, Cocoa Research Institute of Nigeria, National Oil Spill Detection and Response Agency (NOSDRA), Energy Commission of Nigeria, National Productivity Centre, Federal Institute of Industrial Research, Oshodi (FIIRO), National Veterinary Research Institute, National Institute for Cancer Research and Treatment (NICRAT), National Directorate of Employment (NDE), SMEDAN, Federal Neuro-Psychiatric Hospital, Dawanau, and several River Basin Development Authorities.
The allocations cover the construction, renovation and furnishing of palaces, palace halls, royal pavilions, guest palaces, palace access roads, mosques attached to palaces and solar power installations in communities across several states.
The disclosures have sparked widespread outrage, particularly as the 2026 federal budget carries a projected fiscal deficit of ₦31.45 trillion, while millions of Nigerians continue to battle soaring inflation, worsening poverty, collapsing healthcare facilities, poor road networks and rising unemployment.
Critics argue that under Nigeria’s constitutional framework, traditional institutions and community infrastructure are primarily the responsibility of state and local governments, questioning why scarce federal resources are being committed to projects considered local in nature.
Reacting to the revelations, Tracka challenged both the Presidency and the National Assembly over the controversial allocations.
“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 queried.
Tracka stressed that the issue is not about the importance of traditional institutions but about ensuring that public spending reflects constitutional responsibilities, institutional mandates and Nigeria’s development priorities.
The organisation warned that the federal budget should not become a vehicle for financing projects outside the legal responsibilities of government agencies.
Public affairs analysts have also questioned why cancer research institutes, agricultural agencies, science establishments and other specialised federal institutions are being used to execute palace projects, arguing that the pattern bears the hallmarks of constituency project padding and raises fresh concerns about the management of public funds under the Tinubu administration.
The latest revelations are expected to intensify calls for greater transparency, stricter legislative oversight and a comprehensive review of constituency projects embedded in the 2026 federal budget as pressure mounts on the Tinubu government to justify the controversial allocations.