NALDA budget boost lifts funding to N25bn in 2026, expanding spending into research, infrastructure and agricultural mechanisation

The Federal Government of Nigeria, in Abuja, in January 2026, proposed a sharp increase in funding for the National Agricultural Land Development Authority in the 2026 Appropriation Bill, raising the agency’s allocation to N25bn from N7.43bn in 2025.

Also read: FG denies tax laws pause, Oyedele dismisses fake report

The NALDA budget boost represents more than a threefold increase and signals a decisive shift in government strategy towards deeper investment in agricultural productivity and national food security.

In the 2025 fiscal year, the agency’s entire allocation was devoted to capital expenditure, mainly for land acquisition, land clearing and the purchase of agricultural equipment, with no provision for recurrent spending.

The 2026 budget adopts a broader structure, introducing recurrent expenditure of N1.04bn alongside a dominant capital allocation of N23.97bn.

Personnel costs account for N274.75m of the recurrent budget, including N198.97m for salaries and wages and N75.78m for allowances and statutory contributions such as pensions, health insurance and employee compensation.

Overhead expenditure totals N763.26m and covers a wide range of administrative and operational costs.

Travel and transport account for N241.81m, while utilities, materials and supplies together amount to N67.45m.

Maintenance services are allocated N56.5m for vehicles, buildings, furniture, information technology equipment and generators.

Training expenses total N70m, split between local and international programmes.

Other overhead provisions include N90m for security operations, N45m for consulting and professional services, N60m for fuel and lubricants, N45m for insurance premiums and N87.5m for miscellaneous expenses covering welfare packages, publicity, medical services and monitoring activities.

Capital expenditure continues to dominate the agency’s spending profile, reflecting its mandate to expand agricultural land development and mechanisation nationwide.

Fixed assets will consume N2.3bn, including spending on office buildings, motorcycles, trucks, computers, furniture and agricultural equipment, with the latter alone accounting for N1.51bn.

A further N2.62bn is allocated for the construction and provision of fixed assets, covering housing projects, public schools, agricultural facilities and access roads, while environmental preservation projects for erosion and flood control receive N14m.

The largest single capital allocation is N19.03bn earmarked for other capital projects, largely non-tangible assets. Of this amount, N18.87bn is dedicated to research and development, while N161m is set aside for monitoring and evaluation.

Budget analysts say the scale and structure of the allocation reflect a strategic move away from basic land preparation towards more sustainable investment in research, infrastructure and long-term agricultural productivity.

Also read: FG imposes 7.5% VAT on electronic banking services

The Federal Government has consistently identified agriculture as a critical lever for economic diversification, job creation and food security, making the expanded NALDA budget a potentially powerful instrument if effectively implemented.