The Federal Government has instructed ministries, departments, and agencies (MDAs) to roll over 70% of their 2025 capital budget into the 2026 fiscal year.
The measure is part of efforts to complete existing projects and reduce new spending pressures amid tight revenues.
The order is contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning and circulated to ministers, service chiefs, heads of agencies, and other senior officials.
The document stated that annual budget estimates must follow strict rules, and officers responsible for budget preparation must comply.
The circular made clear that the 2026 budget process will not admit new capital projects. Instead, MDAs must continue with allocations already approved in the 2025 budget. It noted that the rollover must be consistent with national priorities and immediate needs.
According to the directive, “MDAs are to upload 70% of their 2025 FGN Budget to continue in FY2026. All such rollover and uploads MUST be in line with the immediate needs of the country as well as government’s development priorities that aligns with the policy direction of the new administration.”
Government priorities were listed as national security, the economy, education, health, agriculture, infrastructure, power and energy, and social safety nets, including women and youth empowerment.
Only 30% of 2025 capital budget will be implemented this year
Under the new framework, capital budget ceilings for 2026 are set at 70% of 2025 project allocations. Only 30% of the 2025 capital budget will be released within the current year. The remaining 70% forms the basis of the 2026 capital budget, replacing the previous practice of a full rollover.
The circular argued that the shift will ensure continuity and eliminate wasteful duplication. MDAs are warned not to exceed their 2025 overhead ceilings when preparing submissions for 2026. The document acknowledged inflationary pressures on overheads but said government revenues remain weak.
“MDAs are required to work within and not exceed their 2025 overhead ceilings (Executive Proposal) for the purpose of preparing their 2026 Overhead budget submissions. While we note the impact of inflation on overhead costs, we are, however, constrained by revenue challenges,” the circular stated.
Budget estimates must follow the policies in the 2026–2028 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper, described as the Federal Government’s pre-budget statement. The document referred to the administration’s priorities under the Renewed Hope Agenda, including the Renewed Hope Infrastructure Development Plan, Ward Development Plan, National Development Plan and the Accelerated Stabilisation and Actualisation
