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Home Economy

FG Boosts NALDA Funding to N25 Billion in 2026 Budget, Tripling 2025 Allocation

Stephen Akudike by Stephen Akudike
January 19, 2026
in Economy
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The National Agricultural Land Development Authority (NALDA) has received a major funding increase in the proposed 2026 federal budget, with total allocation rising to N25 billion — more than triple the N7.43 billion it received in 2025.

The significant jump reflects the government’s renewed emphasis on agricultural mechanisation, land development, and food security initiatives amid persistent challenges in domestic production and rising food prices.

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In the 2025 budget, NALDA’s entire funding was directed toward capital expenditure, focusing on land acquisition, clearing, and the purchase of farming equipment to expand cultivable areas nationwide. There was no separate recurrent allocation that year.

The 2026 Appropriation Bill introduces a more comprehensive structure. Recurrent expenditure is set at N1.04 billion, broken down as follows:

– Personnel costs: N274.75 million (salaries and wages N198.97 million; allowances and social contributions N75.78 million, including NHIS, pension, and employees’ compensation)
– Overheads: N763.26 million, covering travel and transport (N241.81 million), utilities (N20.2 million), materials and supplies (N47.25 million), maintenance services (N56.5 million), training (N70 million, split between local and international), security operations (N90 million), consulting/professional services (N45 million), fuel and lubricants (N60 million), insurance (N45 million), and miscellaneous items (N87.5 million) such as refreshments, publicity, medicals, and monitoring.

Capital expenditure dominates the budget at N23.97 billion, underscoring NALDA’s primary mandate of physical development and asset creation.

Key capital items include:

– Fixed assets: N2.3 billion (office buildings N245 million, motorcycles N60.48 million, trucks N52.5 million, office furniture N192.5 million, computers N245 million, and agricultural equipment N1.51 billion)
– Construction and provision of fixed assets: N2.62 billion (housing, public schools, agricultural facilities, and roads)
– Environmental preservation (erosion and flood control): N14 million
– Other capital projects (primarily non-tangible assets): N19.03 billion, with the largest single component being N18.87 billion for research and development, plus N161 million for monitoring and evaluation

The dramatic increase from N7.43 billion in 2025 to N25 billion in 2026 signals a strategic shift toward deeper investment in research, mechanisation, infrastructure, and long-term agricultural productivity. Officials say the expanded funding will support nationwide efforts to open up more arable land, equip farmers with modern tools, and build resilience against climate challenges.

The allocation comes at a time when Nigeria continues to grapple with food inflation and import dependence, despite ongoing reforms in the sector. NALDA’s enhanced role is expected to contribute to the government’s broader goal of achieving food self-sufficiency and reducing reliance on foreign agricultural imports.

As the National Assembly reviews the 2026 Appropriation Bill, stakeholders in the agricultural value chain will be watching closely to ensure the funds translate into tangible improvements in farm output, rural livelihoods, and national food security. The tripling of NALDA’s budget is seen as a clear statement of intent — but execution will ultimately determine its real impact on the ground.

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