The Federal Government has proposed a total of N6.12bn for the settlement of judgement debts and related liabilities across three ministries in the 2026 budget, according to a review of the appropriation bill. This represents a slight increase from the N6.05bn allocated for the same purpose in the proposed 2025 budget.
An analysis of the figures shows a year-on-year rise of about N75.06m, indicating that obligations arising from court judgements and outstanding legal liabilities have persisted despite reduced allocations to some ministries. The increase is largely driven by higher provisions under the Federal Ministry of Works.
The Ministry of Works accounts for the bulk of the proposed allocation, with a total of N5.39bn earmarked for judgement debts in 2026. This includes N1.4bn listed as general judgement debt and an additional N3.99bn tied to a specific legal matter identified as Suit No. LD/7036GCM/2023. In comparison, the ministry received N5bn in the 2025 budget, reflecting an increase of about N390m in the new proposal.
The Federal Ministry of Education headquarters is allocated N700m in the 2026 budget for outstanding capital liabilities and judgement debts. This is a reduction from the N1bn provided in 2025, suggesting fewer unresolved claims related to education projects or a scaling down of provisions.
Similarly, the Federal Ministry of Health and Social Welfare headquarters is proposed to receive N34.86m in 2026, down from N49.8m in the previous year, making it the smallest allocation among the three ministries.
Despite the reductions recorded by the education and health ministries, overall judgement debt spending is projected to rise due to the increased allocation to the Ministry of Works. The data highlight that judgement debts remain heavily concentrated in infrastructure-related ministries, where contractual disputes, compensation claims, and concession-related litigations are more common.
Recent disclosures by the Minister of Works, Dave Umahi, linking stalled infrastructure concessions to ongoing court cases further underscore the financial and operational impact of unresolved legal disputes on public projects.
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