The Federal Government has directed ministries, departments and agencies (MDAs) to carry over 70 per cent of their 2025 capital allocations into the 2026 fiscal year, as part of efforts to prioritise the completion of ongoing projects and manage spending pressures arising from weak revenues.
The directive 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, agency heads and senior officials in Abuja. The circular, obtained by New Daily Prime, states that preparations for the 2026 budget will not accommodate new capital projects and must strictly adhere to the guidelines provided.
MDAs are expected to retain their 2025 capital ceilings and upload 70 per cent of those allocations into the 2026 cycle. According to the circular, the rollover aligns with the administration’s development priorities, including national security, the economy, education, health, agriculture, infrastructure, power and energy, and social protection programmes targeting women and young people.
The ministry explained that only 30 per cent of the 2025 capital budget will be released this year, with the remaining 70 per cent forming the base for the 2026 capital plan—marking a shift from Nigeria’s traditional rollover practice. The approach, it said, is intended to improve continuity, reduce duplication and ensure value for money.
Despite acknowledging inflationary pressures, the government insisted that MDAs must not exceed their 2025 overhead ceilings due to revenue constraints. It warned that any submission above the approved limits would be adjusted downward.
The financial framework attached to the circular paints a tighter fiscal picture. Total funds available for the Federal Government budget are projected at N54.46tn in 2026, slightly lower than N54.99tn in 2025. Debt servicing is expected to rise significantly from N13.94tn to N15.52tn, while aggregate capital expenditure will fall from N26.19tn to N22.37tn. The deficit is forecast to widen from N14.10tn to N20.12tn.
Economists offered contrasting views on the government’s decision. Professor Sheriffdeen Tella criticised the move as fiscally disorderly, arguing that the 2026 budget lacks a credible foundation since the 2025 budget has barely been implemented.
Similarly, development economist Dr Aliyu Ilias described the rollover as evidence of weak budget discipline, warning that delays in capital projects would deepen public hardship.
However, the Director of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, defended the directive, calling it a pragmatic step to restore credibility to the budget process. He argued that approving new capital spending while past allocations remain unexecuted is “unrealistic” and that the rollover will help “normalise the system”.
Meanwhile, Budget Minister Senator Abubakar Bagudu said the 2026 budget would focus on ward-level development, infrastructure, security and boosting domestic production, in line with Nigeria’s ambition to build a $1tn economy.
