The Federal Government (FG) has directed all ministries, departments, and agencies (MDAs) to roll over 70% of their 2025 capital budget into the 2026 fiscal year. The move, outlined in the 2026 Abridged Budget Call Circular by the Ministry of Budget and Economic Planning, is aimed at completing ongoing projects and reducing new spending pressures in a context of constrained government revenues. The circular was sent to ministers, service chiefs, and heads of agencies across the country.
Under the new directive, MDAs are required to continue implementing allocations approved in the 2025 budget, with no new capital projects admitted in the 2026 fiscal cycle. The rollover is to be consistent with national priorities, including national security, education, health, agriculture, infrastructure, energy, and social safety programs, particularly initiatives supporting women and youth empowerment. Only 30% of the 2025 capital budget will be spent this year, while the remaining 70% forms the basis for next year’s capital allocations.
The circular also sets strict guidelines for overheads and budget estimates. MDAs must not exceed their 2025 overhead ceilings despite inflationary pressures, and all expenditure must follow policies outlined in the 2026–2028 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper. Government-owned enterprises are required to submit their budget proposals online through designated platforms, and all submissions must be completed by December 9, 2025.
Financial data attached to the circular indicate a tighter revenue outlook in 2026. Available resources for the federal government and government-owned enterprises are projected to drop slightly from N54.99 trillion in 2025 to N54.46 trillion in 2026. Capital spending will decline from N26.19 trillion to N22.37 trillion, while debt service is expected to rise from N13.94 trillion to N15.52 trillion, pushing the fiscal deficit to N20.12 trillion. Project-tied loans will also fall sharply, signaling a more constrained financial environment for MDAs.
Analysts note that Nigeria has increasingly relied on overlapping budgets in recent years, a practice that began intensifying around 2023. While the Budget Office maintains that this approach accommodates multi-year projects and delayed implementations, critics argue it weakens accountability and disrupts the standard January–December budget cycle. The 2025 capital budget rollover underscores the government’s focus on fiscal discipline and continuity in development priorities amid rising economic pressures.
source: Business day