FG directs MDAs to roll over 70% of 2025 capital budget into 2026

The Federal Government has directed all ministries, departments, and agencies (MDAs) to carry forward at least 70 per cent of their 2025 capital budget into the 2026 fiscal year, as part of a broader strategy to prioritise ongoing projects and curb escalating expenditure pressures amid revenue shortfalls.

The directive is contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning and distributed to ministers, service chiefs, heads of agencies, and senior government officials in Abuja.

According to the circular, MDAs are expected to focus primarily on completing existing capital projects rather than initiating new ones. The ministry emphasised that the rollover policy is intended to streamline government spending and ensure that limited resources are directed towards projects with significant progress and national impact.

A senior official at the ministry said the decision was informed by the need to maintain fiscal discipline at a time when government revenues remain strained. “The emphasis for 2026 is on consolidation,” the official noted. “New capital projects will only be considered in exceptional circumstances, and MDAs must justify every proposal with strong socio-economic rationale.”

The directive also mandates MDAs to review their 2025 capital implementation performance and submit updated project completion timelines ahead of the 2026 budget preparation cycle.

Analysts say the move could reduce the accumulation of abandoned projects across the country, a recurring challenge in Nigeria’s public finance system. However, they also caution that strict monitoring, transparency, and timely release of funds will be essential to achieving the desired outcomes.

The circular signals the administration’s intent to adopt a more cautious and targeted approach to fiscal planning in the coming year as it navigates the realities of weak revenue inflows and competing national priorities.