In a bid to prioritise ongoing projects and contain spending amid weak revenues, the Federal Government has directed ministries, departments, and agencies (MDAs) to carry over 70 per cent of their 2025 capital budget into the 2026 fiscal year.
The directive, outlined in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning, was circulated to ministers, service chiefs, and top government officials in Abuja. The circular, obtained by The PUNCH on Monday, emphasizes strict compliance, stating that preparations for the 2026 budget will not allow the introduction of new capital projects.
According to the document, MDAs are required to continue allocations approved in the 2025 budget rather than seeking fresh projects. The 70 per cent rollover must align with national priorities, including national security, economic development, education, health, agriculture, infrastructure, power and energy, and social safety nets such as women and youth empowerment.
The circular explained that only 30 per cent of the 2025 capital budget would be released within the current fiscal year, while the remaining 70 per cent would form the basis for the 2026 budget. This approach aims to ensure continuity for ongoing projects and prevent wasteful duplication. MDAs were also instructed not to exceed 2025 overhead ceilings when preparing their 2026 submissions.
The circular further stated that all budget estimates must consider policies outlined in the 2026–2028 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper, including initiatives under the Renewed Hope Agenda, the Renewed Hope Infrastructure Development Plan, and the Ward Development Plan.
The government projected total capital expenditure of N22.37tn in 2026, down from N26.19tn in 2025, with MDA capital allocations falling from N12.39tn to N8.67tn. The overall deficit is expected to rise from N14.10tn in 2025 to N20.12tn in 2026 due to tighter revenues and rising debt service obligations.
The move has sparked mixed reactions among economists. Dr. Aliyu Ilias, Chief Executive of CSA Advisory, criticised the rollover, describing it as a sign of poor fiscal discipline and warning that stalled projects would deny citizens critical services. He added that the National Assembly’s oversight had also been inadequate.
In contrast, Dr. Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise, supported the decision, describing it as a necessary step to restore credibility and normalise the budget process. He said the approach would help align revenue assumptions with expenditure plans, ensuring a more grounded fiscal framework.
Speaking in Abuja during a stakeholder engagement with the Nigeria International Non-Governmental Organisation Forum, Minister of Budget and Economic Planning, Senator Abubakar Bagudu, explained that the 2026 budget cycle would support Nigeria’s $1 trillion economy target and emphasise community-level growth, ward-based development, infrastructure, security, and stronger domestic production.
MDAs and government-owned enterprises are required to submit their budget proposals online through GIFMIS and BIMMS respectively by Tuesday, December 9, 2025.
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