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NALDA’s Budget Soars to N25bn

The National Agricultural Land Development Authority (NALDA) is set for a major expansion in 2026, following a sharp increase in its budgetary allocation to N25bn in the proposed Appropriation Bill, up from N7.43bn in 2025.

In the 2025 fiscal year, the agency’s funding was devoted solely to capital projects, with no provision for recurrent spending. The funds were largely used for land acquisition and clearing, as well as the purchase of farm machinery, in line with efforts to scale up food production nationwide.

The 2026 proposal introduces a broader funding structure, combining both recurrent and capital expenditure. Recurrent spending is estimated at N1.04bn, made up of N274.75m for personnel costs and N763.26m for overheads. Staff salaries and wages account for N198.97m, while allowances and statutory contributions total N75.78m, covering items such as health insurance, pensions, and employee compensation.

Overhead costs span various administrative needs, including N241.81m for travel and transport, N20.2m for utilities, and N47.25m for materials and supplies. Maintenance services, covering vehicles, office facilities, IT equipment, and power generators, are allocated N56.5m. Training programmes will receive N70m, split between local and international capacity-building initiatives.

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Additional overhead provisions include N90m for security operations, N45m for professional and consulting services, N60m for fuel and lubricants, and N45m for insurance premiums. Miscellaneous expenses totalling N87.5m will cover welfare packages, publicity, medical services, monitoring activities, and other operational needs.

Capital expenditure remains the core of NALDA’s 2026 budget, standing at N23.97bn. Fixed asset purchases are projected at N2.3bn, including investments in office buildings, vehicles, office furniture, computers, and agricultural machinery. Another N2.62bn is earmarked for construction and infrastructure projects such as housing, schools, agricultural facilities, and access roads, while N14m is set aside for erosion and flood control.

The largest share of capital funding, N19.03bn, is reserved for other capital projects, with a strong emphasis on research and development, which will absorb N18.87bn. Monitoring and evaluation activities will receive N161m.

Overall, the jump in NALDA’s allocation signals a strategic shift by the Federal Government from basic land development to more comprehensive investments in research, infrastructure, mechanisation, and oversight, aimed at strengthening agricultural productivity and enhancing food security across the country.

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