The Federal Government has allocated about N1.13 trillion to six ministries and five regional development commissions in the 2026 budget, 14 years after the Oronsaye Report recommended the reduction and merger of government agencies to cut the cost of governance.
The development has renewed concerns over the implementation of the report, which was submitted in 2012 by the Presidential Committee on the Restructuring and Rationalisation of Federal Government Parastatals, Commissions and Agencies.
The committee, headed by former Head of the Civil Service of the Federation, Stephen Oronsaye, reviewed 541 government agencies and recommended the abolition, merger or restructuring of several institutions considered to have overlapping functions.
Although the Federal Government announced steps towards implementing the recommendations in 2024, several agencies identified for restructuring or scrapping continue to receive allocations in the annual budget.
According to an analysis of the 2026 budget, the six ministries and five regional development commissions collectively received about N1.13 trillion.
Among the ministries, the Ministry of Livestock Development was allocated N81.19 billion, while the Ministry of Regional Development received N27.23 billion.
The Ministry of Art, Culture, Tourism and Creative Economy received N70.3 billion, while N21.52 billion was allocated to the Ministry of Steel Development.
The Ministry of Marine and Blue Economy received N149.2 billion, while the Ministry of Gas Resources got N71.59 billion.
The four regional development commissions also received a combined allocation of N705.61 billion.
The continued funding of some agencies previously recommended for abolition has further raised questions about the government’s efforts to reduce the cost of governance.
For instance, the National Productivity Centre, which was recommended for scrapping under the Oronsaye Report, received N110.68 billion in the 2026 budget.
The National Land Development Authority, which was recommended for integration into the Ministry of Agriculture, also received N25 billion.
Similarly, the Federal Character Commission and the Financial Reporting Council of Nigeria, which were among institutions affected by the recommendations, continue to receive federal allocations.
Analysts have argued that simply announcing the merger or abolition of agencies without addressing overlapping functions, personnel and administrative structures may not significantly reduce government expenditure.
The development comes amid growing calls for the Federal Government to fully implement the Oronsaye Report and redirect savings from administrative expenditure to critical sectors such as infrastructure, healthcare, education and economic development.
The Oronsaye Report was introduced as a major reform aimed at creating a leaner and more efficient federal government structure.
However, 14 years after its submission, the continued existence and funding of several affected agencies remain a major concern in Nigeria’s efforts to reduce the cost of governance.
