The Federal Government has directed all Ministries, Departments, and Agencies (MDAs) to roll over 70 per cent of their 2025 capital allocations into the 2026 fiscal year, under a new budgeting framework issued by the Ministry of Budget and Economic Planning.

According to the 2026 Abridged Budget Call Circular, only 30 per cent of next year’s capital budget will be released in 2025, while the remaining 70 per cent forms the base of the 2026 capital spending plan.

MDAs are barred from proposing new capital projects with a focus on completing ongoing ones in line with government priorities, including security, economic growth, education, health, agriculture, power, and social welfare.

The circular warns MDAs not to exceed their 2025 overhead ceilings despite inflation, citing tight revenues.

It also stresses alignment with the Medium-Term Expenditure Framework, the Renewed Hope Infrastructure Development Plan and other national plans. Budget submissions must be made through the designated government platforms.

Statutory transfers are expected to decline, debt service costs to rise, and aggregate capital spending to drop from N26.19tn to N22.37tn.

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Capital allocations to MDAs will fall to N8.67tn, while project-tied loans are also set to reduce. The fiscal deficit is projected to widen to N20.12tn.

Total funds available to the Federal Government, including GOEs, are estimated at N54.46tn, slightly lower

Source: Channels