The Federal Government of Nigeria has instructed Ministries, Departments, and Agencies (MDAs) to carry over 70% of their 2025 capital allocations to the 2026 fiscal year. This directive is outlined in the 2026 Abridged Budget Call Circular, issued by the Ministry of Budget and Economic Planning. The circular stipulates that only 30% of the current year’s capital budget will be released in 2025, while the remaining 70% will form the basis of next year’s capital spending.
The government has adopted a new framework that caps all 2026 capital budget ceilings at 70% of 2025 project allocations. This move aims to prevent duplication, strengthen continuity, and ensure that uncompleted projects are not abandoned. The administration prioritizes completing ongoing projects amid weak revenues and rising fiscal pressures. MDAs are required to upload 70% of their 2025 budget to continue in the 2026 fiscal year, with all rollover items aligning with the administration’s priorities, including national security, economic growth, education, health, agriculture, infrastructure, power, energy, and social safety nets.
The 2026 budget must reflect the strategies outlined in the Medium-Term Expenditure Framework (2026-2028), the Renewed Hope Infrastructure Development Plan, and the National Development Plan. MDAs are expected to submit their budgets through the GIFMIS Budget Preparation Subsystem, while government-owned enterprises will submit via the Budget Information Management and Monitoring System. All submissions must be completed by December 9, 2025.
The financial projections accompanying the circular indicate a more constrained revenue outlook for 2026, with total funds available to the Federal Government projected at N54.46tn, down slightly from N54.99tn in 2025. Debt service obligations are set to rise sharply, from N13.94tn in 2025 to N15.52tn in 2026. The deficit is expected to widen significantly to N20.12tn in 2026, from N14.10tn in the current year. Aggregate capital expenditure is projected at N22.37tn, down from N26.19tn in 2025.
The directive is part of the government’s efforts to manage its finances effectively, given the current revenue challenges. The move is expected to have significant implications for the country’s economic development and fiscal stability. As the government continues to navigate the complexities of its fiscal policy, the implementation of this directive will be closely watched by stakeholders and analysts.