FG rolls over 70% of 2025 capital budget to 2026 amid revenue challenges

The Federal Government has issued a directive ordering all Ministries, Departments, and Agencies (MDAs) to carry over 70 per cent of their 2025 capital budget into the 2026 fiscal year, according to the 2026 Abridged Budget Call Circular released by the Federal Ministry of Budget and Economic Planning.
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The move is targeted at prioritizing the completion of existing projects, contain spending pressures, and address weak government revenues. The directive states that the 2026 budget preparation will not allow the introduction of new capital projects.
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The circular, mandates that 70 per cent of the 2025 capital budget allocations must be uploaded to serve as the foundation for the 2026 capital budget, replacing the traditional method of annual budget preparation. Only 30 per cent of the 2025 capital budget will be released within the current fiscal year.
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The projects rolled over must align with key priorities under the Renewed Hope Agenda, including, national security, the economy, education, health, agriculture, infrastructure, power & energy, and social safety nets.
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MDAs are also required to work within their 2025 overhead ceilings for their 2026 submissions, despite acknowledging the impact of inflation on costs.
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The decision was made as the government faces a financial framework, characterized by a worsening revenue position and rising debt service obligations.
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The development economist described the rollover as a sign of poor fiscal discipline and a failure by the government to deliver planned services, warning that the move creates a room for corruption due to lax oversight.
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Meanwhile, Dr. Muda Yusuf, the Director of the Centre for the Promotion of Private Enterprise supported the move as a necessary step to restore credibility to the budget process by cleaning up the backlog of unimplemented capital allocations and making expenditure plans more realistic.
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The Minister of Budget and Economic Planning, Senator Abubakar Bagudu, stated that the 2026 budget aims to support the $1tn economy target of Nigeria by focusing on infrastructure, security, and community-level development.
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