The Federal Government has directed all ministries, departments, and agencies (MDAs) to carry over 70 per cent of their 2025 capital projects into the 2026 fiscal year. The move aims to prioritise the completion of ongoing projects and manage spending pressures amid revenue constraints.
The directive, contained in the 2026 Abridged Budget Call Circular issued by the Ministry of Budget and Economic Planning, instructs MDAs to focus on continuing approved projects rather than introducing new ones. It stated that the 2026 budget preparation would be guided strictly by national priorities, including security, the economy, education, health, agriculture, infrastructure, energy, and social welfare.
According to the circular, only 30 per cent of the 2025 capital budget will be implemented this year, while the remaining 70 per cent will form the foundation of the 2026 capital expenditure. The measure, the ministry explained, is designed to ensure continuity, prevent duplication, and improve efficiency in project execution.
The circular also warned MDAs not to exceed their 2025 overhead ceilings when preparing their 2026 submissions. It acknowledged the impact of inflation on operational costs but stressed that government finances remain tight. The document urged ministries to adhere to the revenue framework outlined in the 2026–2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper, which forms the basis of the new budget.
Budget estimates for 2026 show a tighter fiscal environment, with total projected expenditure of ₦54.46 trillion, slightly lower than ₦54.99 trillion in 2025. Capital expenditure is projected to drop from ₦26.19 trillion in 2025 to ₦22.37 trillion in 2026, while the deficit is expected to rise from ₦14.10 trillion to ₦20.12 trillion.
Economists have expressed mixed views on the government’s decision. Development economist Dr. Aliyu Ilias criticised the rollover, describing it as evidence of weak fiscal discipline and a delay in delivering public projects. He argued that the policy could hinder oversight and accountability in project implementation.
However, Dr. Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise, backed the move, calling it a realistic step toward restoring credibility to Nigeria’s budgeting system. He said the rollover would allow the government to complete unfinished projects and align expenditure plans with available revenues.
Budget and Economic Planning Minister Senator Abubakar Bagudu reaffirmed that the next budget cycle will focus on infrastructure, local development, and economic stability, supporting the administration’s goal of building a $1 trillion economy.
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2025-12-05