FG orders 70 of 2025 capital budget carried over to 2026 amid revenue constraints
In a move aimed at consolidating ongoing projects and managing fiscal pressures, the Federal Government has instructed all Ministries, Departments, and Agencies (MDAs) to defer 70 per cent of their 2025 capital allocations into the 2026 fiscal year.
The directive, outlined in the 2026 Abridged Budget Call Circular issued by the Ministry of Budget and Economic Planning, has been circulated to ministers, service chiefs, and agency heads.
Under the new framework, only 30 per cent of 2025 capital funds would be released this year, with the remaining 70 per cent forming the base for next year’s capital spending.
Importantly, the circular prohibits MDAs from proposing new capital projects for 2026.
According to the circular, the government is focusing on completing ongoing projects in critical sectors such as national security, education, health, agriculture, infrastructure, power, energy, and social safety nets.
The policy is intended to strengthen continuity, prevent duplication, and avoid the abandonment of uncompleted projects.
The document emphasised strict adherence to budget ceilings, cautioning MDAs against exceeding 2025 overhead limits despite inflationary pressures.
“We are constrained by revenue challenges.
”While we note the impact of inflation, proposals that exceed approved ceilings will be adjusted downward,” it noted.
Budget submissions are to be made through the GIFMIS Budget Preparation Subsystem, while government-owned enterprises would use the Budget Information Management and Monitoring System.
All proposals were expected to be submitted by Tuesday, December 9, 2025.
The circular also highlighted a tighter fiscal landscape for the next year. Key projections include:
Aggregate capital expenditure: N22.37tn, down from N26.19tn in 2025
MDA capital allocations: N8.67tn, reduced from N12.39tn
Project-tied loans: N2.05tn, down from N3.36tn
Statutory transfers: N3.15tn, from N3.64tn in 2025
Recurrent non-debt expenditure: N15.26tn
Debt servicing: N15.52tn, rising from N13.94tn
Budget deficit: N20.12tn, up from N14.10tn
The circular noted that personnel costs had been pre-calculated using data from IPPIS and prior submissions, with each MDA to be informed of its 2026 ceiling.
Overall, total government funds including revenues from government-owned enterprises—are projected at N54.46tn, slightly below 2025’s N54.99 trillion.
MDAs were instructed to ensure that their budget proposals align with the Medium-Term Expenditure Framework (2026–2028), the Renewed Hope Infrastructure Development Plan, the Ward Development Plan, the National Development Plan, and the Accelerated Stabilisation and Actualisation Plan.
The circular reflected the administration’s intention to balance fiscal discipline with the completion of priority projects, addressing the twin challenges of weak revenues and rising debt obligations.
