Economy

FG Raises NALDA Allocation to N25bn in 2026 Budget to Boost Food Production

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The National Agricultural Land Development Authority (NALDA) has received a major funding boost in the 2026 Appropriation Bill, with its total allocation rising to N25bn from N7.43bn in 2025, reflecting the Federal Government’s renewed focus on agricultural productivity and food security.

In the 2025 fiscal year, NALDA’s entire allocation was devoted to capital expenditure, mainly for land acquisition, land clearing and the purchase of agricultural equipment to support increased food production. There were no provisions for recurrent expenditure in that budget.

The 2026 budget adopts a broader and more detailed structure. Recurrent expenditure stands at N1.04bn, covering personnel costs of N274.75m and overheads amounting to N763.26m. Personnel costs include N198.97m for salaries and wages, alongside N75.78m for allowances and social contributions such as pensions, NHIS and employee compensation.

Overhead costs span a wide range of administrative needs. Travel and transport account for N241.81m, utilities N20.2m, and materials and supplies N47.25m. Maintenance services receive N56.5m, while training is allocated N70m, split between local and international programmes. Other overhead items include security operations, consulting services, fuel, insurance premiums and miscellaneous administrative expenses.

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Capital expenditure dominates the 2026 allocation at N23.97bn. Fixed assets alone account for N2.3bn, including spending on office buildings, vehicles, computers and agricultural equipment worth N1.51bn. Construction and provision of fixed assets receive N2.62bn, covering housing, schools, agricultural facilities and road projects.

The largest component of the capital budget is N19.03bn for other capital projects, with N18.87bn dedicated to research and development and N161m for monitoring and evaluation.

The significant increase in NALDA’s budget signals a shift from basic land development to more strategic investments in research, mechanisation, infrastructure and monitoring, aimed at strengthening agricultural output and enhancing food production across Nigeria.

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