Nigeria plans to spend almost ₦1 trillion on SUVs and thousands of empowerment projects in 2026.
The size of that spending is striking. But the bigger question is what Nigeria expects to get in return.
A review of the 2026 Appropriation Act by civic technology organisation Tracka found that the Federal Government allocated ₦962.83 billion to 39 SUVs and 2,579 empowerment projects.
The SUVs account for ₦15.13 billion. Empowerment programmes take the remaining ₦947.70 billion.
Together, the allocations exceed the combined budgets of seven federal ministries covering areas such as trade and investment, housing, justice, aviation and petroleum resources.
At a time when Nigeria plans to borrow heavily to finance government spending, that comparison raises a difficult question: are these allocations the best use of scarce public money?
Where the ₦962 Billion Is Going
Empowerment spending covers a wide range of projects.
The budget includes buses, motorcycles, tricycles, electric vehicles, sewing machines, fertiliser, vocational equipment, grants and other interventions spread across different agencies and regions.
The largest single allocation identified in Tracka’s review is ₦89.09 billion for the Renewed Hope Fertiliser Support Programme under the National Agricultural Development Fund.
Other projects include ₦14 billion for economic empowerment equipment and utility vehicles through the Federal Cooperative College in Oji River, ₦14 billion for youth empowerment programmes and another ₦14 billion for youth empowerment and medical outreach.
The concern is not that empowerment programmes have no economic value.
Well-targeted programmes can help small businesses, support vulnerable households and provide tools that enable people to earn income.
The problem is whether taxpayers can clearly see where the money goes and what results it produces.
Why Tracka Is Asking Questions
Tracka found that only 70 of the 2,579 empowerment projects clearly identified where implementation would take place.
That leaves thousands of projects without clearly stated locations.
The projects also sit across 184 implementing agencies, including some institutions whose traditional mandates do not centre on empowerment programmes.
For example, the Federal Cooperative College in Oji River received 393 projects worth ₦127.1 billion, while the Federal College of Horticulture in Dadin-Kowa received 216 projects worth ₦88.1 billion.
Tracka argues that vague locations, unclear beneficiaries and unusual implementing agencies make it harder for citizens and oversight bodies to follow the money.
The group accepts that empowerment programmes can improve livelihoods when government designs and executes them properly.
But it warns that weakly defined projects can also create room for political patronage rather than broad economic benefits.
For businesses and investors, that distinction matters.
Public spending can stimulate demand, support domestic production and create jobs. But poorly targeted expenditure can add to government debt without increasing the economy’s productive capacity.
Nigeria Is Borrowing More
The spending becomes more significant when placed beside Nigeria’s fiscal position.
The Federal Government increased its 2026 borrowing plan to ₦29.20 trillion from an earlier projection of ₦17.89 trillion.
Government expenditure is estimated at ₦68.32 trillion against projected revenue of ₦36.87 trillion, leaving a fiscal deficit of about ₦31.46 trillion.
The government also raised ₦5.08 trillion from the domestic bond market during the first six months of 2026, up 77.8 percent from ₦2.86 trillion during the same period in 2025.
That means every major spending decision now carries an additional cost.
When government borrows, future revenues must eventually repay the debt and its interest.
The question is therefore not simply whether ₦962.83 billion is being spent.
It is whether that spending can generate enough economic value to justify the financial burden behind it.
Muda Yusuf Warns About the Debt Risk
Dr Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, has warned that large deficits and rising debt could threaten Nigeria’s recent macroeconomic gains.
He argues that the government should use improvements in revenue to reduce its deficit and debt exposure rather than allow borrowing to continue expanding.
His concern centres on fiscal space.
As debt obligations rise, government has less room to spend on infrastructure, education, healthcare and other priorities without borrowing even more.
Yusuf also warns that losing recent macroeconomic stability could revive stronger inflation and foreign exchange pressures.
For businesses, those risks are significant.
Higher government borrowing can compete with companies for available capital. Rising debt-service costs can weaken public investment, while fiscal instability can increase uncertainty around inflation, interest rates and the naira.
Should Empowerment Money Support Nigerian Production?
Economist Sheriffdeen Tella believes the government must also examine what the empowerment money actually buys.
Tella, a professor of economics at Olabisi Onabanjo University, argues that government should prioritise locally manufactured products when distributing vehicles, equipment and other empowerment items.
His argument is simple.
When Nigeria borrows money and spends it on imported goods, a significant portion of that spending supports production and employment outside the country.
But when government buys locally produced goods, the same expenditure can support Nigerian manufacturers, workers and suppliers.
Tella said empowerment spending should strengthen domestic production, particularly when loans help finance government expenditure.
That turns the debate from one about spending alone into one about economic multipliers.
The government could spend ₦1 billion in two different ways and produce very different outcomes depending on where the goods come from and who ultimately benefits.
Economists Question the Priorities
Lagos-based economist Adewale Abimbola takes an even more direct view.
He argues that committing nearly ₦1 trillion to SUVs and empowerment programmes while borrowing heavily sends the wrong message about government priorities.
Abimbola believes infrastructure and human capital offer stronger foundations for sustainable development.
He does not dismiss empowerment programmes entirely. Instead, he argues that they only create meaningful economic benefits when support reaches the right people and beneficiaries receive the capital, equipment and technical help needed to become productive.
Poorly designed programmes risk becoming temporary spending rather than long-term investment.
What Nigeria Must Prove
Nigeria does not necessarily have to choose between empowerment and infrastructure.
But a government facing a large fiscal deficit has to prove that every major allocation creates measurable value.
That makes transparency crucial.
Who gets the equipment?
Where will the projects operate?
How will government measure their impact?
How much of the spending will support Nigerian businesses?
And what economic return will taxpayers receive from nearly ₦1 trillion in allocations?
Nigeria’s 2026 budget is already relying heavily on debt.
The real issue is therefore bigger than SUVs or empowerment programmes.
It is whether the government can show that the money it borrows today will build enough economic value to justify what Nigerians will eventually have to repay.
Frequently Asked Questions
How much did the Federal Government allocate to SUVs and empowerment projects?
Tracka identified ₦962.83 billion in total allocations, comprising ₦15.13 billion for 39 SUVs and ₦947.70 billion for 2,579 empowerment projects.
Why are the allocations raising concerns?
Tracka says many projects lack clearly identified implementation locations, while economists question whether the spending represents the best use of public funds at a time of large deficits and rising borrowing.
How much does Nigeria plan to borrow in 2026?
The Federal Government’s borrowing plan increased to ₦29.20 trillion as projected expenditure rose well above expected revenue.