FG Defers 70% of 2025 Capital Projects to 2026

The Federal Government has directed all ministries, departments and agencies to roll over 70 per cent of their 2025 capital budget into the 2026 fiscal year, as part of efforts to prioritise ongoing projects and manage spending pressures caused by declining revenues.

The directive, issued through the 2026 Abridged Budget Call Circular released by the Ministry of Budget and Economic Planning, emphasizes that no new capital projects will be allowed in the 2026 fiscal proposal, urging MDAs to continue with allocations already approved in the 2025 budget.

According to the circular, only 30 per cent of the 2025 capital allocation will be implemented this year, while the remaining 70 per cent will form the foundation of the 2026 capital budget. The ministry explained that this approach aims to strengthen continuity, reduce duplication, and ensure better alignment with national priorities.

The document further outlined priority areas that must guide budget submissions, including national security, the economy, agriculture, education, health, infrastructure, energy, and social safety nets targeted at women and youth. It added that ministries must not exceed their overhead ceilings for 2026 despite rising inflation.

Budget officers across government agencies were reminded that their submissions must align with the Medium-Term Expenditure Framework and the administration’s Renewed Hope Agenda, which places emphasis on ward-based development, infrastructure expansion and economic stability.

“MDAs are to upload 70 per cent of their 2025 FGN Budget to continue in FY2026. All such rollover and uploads MUST be in line with the immediate needs of the country as well as government’s development priorities that align with the policy direction of the new administration,” the circular stated.

“MDAs are required to work within and not exceed their 2025 overhead ceilings for the purpose of preparing their 2026 overhead budget submissions. While we note the impact of inflation on overhead costs, we are constrained by revenue challenges,” it added.

The financial framework accompanying the circular showed tighter funding conditions for 2026, including an increase in the fiscal deficit from N14.10tn to N20.12tn, declining capital allocations for MDAs, and higher debt service obligations. Despite criticisms from economists about late budget preparation and possible overlap of fiscal cycles, the government maintained that the 2026 budget will focus on infrastructure, security and domestic production to support Nigeria’s long-term growth targets.