Nigeria’s federal government has proposed to spend about US$3.8 million on judgment debts and related legal liabilities across three ministries in its draft 2026 budget, according to a review of the appropriation bill.
The proposed allocation, equivalent to 6.12 billion naira, is slightly higher than the roughly US$3.78 million provided in the draft 2025 budget, reflecting a year-on-year increase of about US$47,000, despite lower provisions for some ministries.
Judgment debts payments arising from court rulings and unresolved legal claims have remained a recurring feature of Nigeria’s public finances, particularly in infrastructure-related ministries where disputes over contracts, concessions and compensation are more common.
The Federal Ministry of Works accounts for the bulk of the proposed 2026 allocation. The ministry is set to receive a combined US$3.37 million, including about US$875,000 listed broadly as judgment debts and an additional US$2.49 million tied to a specific legal case identified as Suit No. LD/7036GCM/2023.
In the proposed 2025 budget, the Ministry of Works was allocated around US$3.13 million for judgment debts. The increase of roughly US$244,000 in 2026 is largely due to the inclusion of the court case, highlighting the scale of unresolved litigation linked to major road projects.
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The Federal Ministry of Education headquarters is proposed to receive about US$438,000 in 2026 for outstanding capital liabilities and judgment debts, down from approximately US$625,000 allocated for the same purpose in 2025. The reduction suggests a lower provision for unresolved claims associated with education-related projects.
The Federal Ministry of Health and Social Welfare has the smallest allocation among the three ministries. The ministry is expected to receive about US$21,800 for judgment debts in 2026, compared with roughly US$31,100 in the previous year.
Despite reduced allocations to the education and health ministries, the overall increase in judgment debt provisions for 2026 is driven by higher spending under the Ministry of Works. Budget data show that such liabilities remain concentrated in infrastructure ministries, where contractual disputes and concession-related claims are more prevalent.
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The issue of judgment debts has gained renewed attention amid ongoing legal disputes affecting key transport projects. In October 2025, Works Minister Dave Umahi said plans to concession the Lagos–Ibadan Expressway to private operators had been delayed by a court case.
Speaking to journalists after inspecting sections of the Sagamu–Ijebu Ode–Benin Expressway and the Lagos–Ibadan Expressway, Umahi said the litigation had stalled efforts to transfer the operation and maintenance of completed roads to the private sector.
“We want the private sector to take up some of these completed projects, operate and maintain them, but the matter is still in court,” Umahi said, warning that prolonged legal disputes could ultimately affect road users.
The controversy dates back to 2009, when the federal government awarded a 25-year concession to Bi-Courtney Highway Services Limited to reconstruct, expand and manage the Lagos–Ibadan Expressway under a public-private partnership model. Although the deal was ratified in 2011, it was terminated in 2012 for alleged non-performance.
Bi-Courtney later challenged the termination in court, accusing the government of breaching due process by awarding a new concession to Motorway Assets Limited without following established procedures. The case remains emblematic of the legal disputes that continue to add to Nigeria’s judgment debt obligations.
