FG Rolls Over 70% of 2025 Capital Budget to 2026 Amid Revenue Constraints

The Federal Government has directed ministries, departments, and agencies to carry over 70 per cent of their 2025 capital budget into 2026, prioritizing the completion of existing projects amid revenue challenges. The directive, outlined in the 2026 Abridged Budget Call Circular issued by the Ministry of Budget and Economic Planning, instructs that new capital projects will not be introduced and all budget preparations must align with national priorities, including national security, the economy, education, health, agriculture, infrastructure, power, and social safety nets.

The circular stipulates that only 30 per cent of the 2025 capital budget will be released this year, while the remaining 70 per cent will form the foundation of the 2026 budget. Ministries are required to stay within their 2025 overhead ceilings despite inflation, with proposals exceeding approved limits to be adjusted downward. Budget estimates must align with the 2026–2028 Medium Term Expenditure Framework and Fiscal Strategy Paper, as well as existing government programs, including the Renewed Hope Agenda and the National Development Plan. All submissions must be made online by December 9, 2025.

Financial projections indicate tighter revenues in 2026, with total available funds for the federal budget, including government-owned enterprises, at N54.46 trillion, down from N54.99 trillion in 2025. Aggregate capital expenditure is expected to fall from N26.19 trillion in 2025 to N22.37 trillion next year, while the deficit is projected to rise to N20.12 trillion. MDA capital expenditure will drop from N12.39 trillion to N8.67 trillion, and project-tied loans are set to decline from N3.36 trillion to N2.05 trillion.

Economists expressed differing views on the rollover. Dr Aliyu Ilias of CSA Advisory criticized the move, describing it as a sign of poor fiscal discipline and a potential avenue for corruption. He argued that delaying capital projects would deprive citizens of benefits and that the National Assembly was failing in its oversight role. Conversely, Dr Muda Yusuf of the Centre for the Promotion of Private Enterprise defended the decision, saying it was necessary to restore credibility to the budget process and align expenditures with available revenues.

Minister of Budget and Economic Planning, Senator Abubakar Bagudu, emphasized that the 2026 budget would support Nigeria’s $1 trillion economy target, with a focus on ward-based development, infrastructure, security, and boosting domestic production as global aid declines. The government maintains that the rollover approach will ensure continuity, eliminate duplication, and strengthen fiscal planning while adhering to national development priorities.