The Federal Government has ordered ministries, departments and agencies (MDAs) to roll over 70 per cent of their 2025 capital budgets into the 2026 fiscal year as part of efforts to prioritise ongoing projects amid weak revenues and growing fiscal pressure.
The directive, contained in the 2026 Abridged Budget Call Circular from the Ministry of Budget and Economic Planning, was sent to ministers, service chiefs and agency heads. The circular sets strict rules for the 2026 budget, including a ban on new capital projects.
According to the document, MDAs must “upload 70 per cent of their 2025 capital allocations to continue in FY2026” and ensure that rollover projects align with key government priorities, security, economic growth, education, health, agriculture, infrastructure, power, energy and social protection.
Revenue Pressures Tighten Capital Spending
The ministry explained that only 30 per cent of the 2025 capital budget will be released this year, while the remaining 70 per cent forms the base of the 2026 capital budget. It said the approach will prevent duplication and ensure continuity of ongoing projects.
“We are constrained by revenue challenges,” the circular stated, warning MDAs not to exceed their 2025 overhead ceilings in their 2026 proposals despite rising inflation. Any excess submissions, the ministry said, will be cut.
Budget Must Align With Government Plans
The 2026 budget must reflect key government strategies, including:
- The Medium-Term Expenditure Framework (2026–2028)
- The Renewed Hope Infrastructure Development Plan
- The Ward Development Plan
- The National Development Plan
- The Accelerated Stabilisation and Actualisation Plan
All MDAs must submit their budgets through GIFMIS, while government-owned enterprises will use BIMMS. Submissions closed on Tuesday, December 9, 2025.
Personnel cost ceilings for each ministry have already been computed using IPPIS data, the circular noted.
Tighter Revenues, Rising Debt Service in 2026
The fiscal outlook attached to the circular shows Nigeria heading into a tighter revenue environment. Federal Government revenues (including GOEs) are projected at N54.46 trillion, slightly lower than N54.99 trillion in 2025.
Key projections for 2026 include:
- Statutory transfers: N3.15tn (down from N3.64tn)
- Recurrent non-debt spending: N15.26tn
- Debt service: N15.52tn, up from N13.94tn
- Aggregate capital expenditure: N22.37tn, down from N26.19tn
- MDA capital allocations: N8.67tn (down from N12.39tn)
- Project-tied loans: N2.05tn (down from N3.36tn)
The budget deficit is projected to widen sharply to N20.12tn in 2026, compared to N14.10tn this year.
