The Federal Government has announced plans to implement 30 per cent of the 2025 capital budget before the end of November, in a renewed push to accelerate project delivery and clear pending obligations.
The decision follows a directive to Ministries, Departments and Agencies (MDAs) to strictly adhere to procurement regulations in executing and processing payments for capital projects under the extended 2025 budget cycle.
In a statement issued on Thursday bythe Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa, the government said MDAs had been ordered to fully comply with the Public Procurement Act in implementing both the 2025 and 2026 capital budgets.
The Minister of State for Finance, Mrs Doris Uzoka-Anite, gave the directive during a stakeholders’ meeting on the implementation of the extended 2025 Capital Budget at the Federal Ministry of Finance in Abuja.
She underscored the need for due process in capital disbursements.
“Mrs Uzoka-Anite emphasised that all capital payments must comply with the principles of the Procurement Act and that capital projects must be backed by cash before execution.
“She warned that no capital payment should be processed outside approved procurement procedures.”
Uzoka-Anite also assured stakeholders that the government has adequate resources to meet outstanding commitments, urging MDAs to update their records to speed up payment processing.
“The Minister further stated that the nation has adequate funds to settle pending payments and urged MDAs to review and update their documentation to facilitate the timely processing of payments,” the statement added.
Providing further clarification, the Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, announced that the Government Integrated Financial Management Information System had been fully restored. He said warrants had already been issued to MDAs and disclosed that Treasury House would begin implementing the 30 per cent component of the 2025 capital budget by the end of next week.
“Dr Ogunjimi explained that 30 per cent of the 2025 Capital Budget will be implemented between now and 31 November 2026, while the remaining 70 per cent has been rolled over into the 2026 Capital Budget to ensure seamless implementation, in line with the directive of President Bola Tinubu.
“He reiterated that warrants have already been issued to MDAs and announced that Treasury House will commence implementation of the 30 per cent component of the 2025 Budget by the end of next week.”
The arrangement effectively shifts a substantial portion of last year’s capital spending into the current fiscal window, while transferring the larger 70 per cent share into the 2026 capital framework to prevent disruptions to ongoing projects.
In his welcome remarks, the Director of Funds, Mr Steve Ehikhamenor, cautioned MDAs against exceeding their approved allocations. He advised agencies to avoid budget overruns, stick strictly to approved project line items and values, refrain from spending beyond amounts specified in their warrants, and return any unutilised funds to the Treasury. He also encouraged close collaboration with GIFMIS officials for technical support.
Earlier reporting indicated that in December 2025, the government directed MDAs to carry over 70 per cent of their 2025 capital allocations into 2026 as part of efforts to prioritise project completion and manage spending pressures amid weak revenue performance. The instruction was contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning.
The circular specified that only 30 per cent of the 2025 capital budget would be released within the year, with the remaining 70 per cent forming the basis of the 2026 capital budget, effectively replacing the traditional rollover model.
However, the earmarked 30 per cent was not released in 2025, leading to its deferral into 2026 after ministers raised concerns over the non-release of funds for capital projects.
Data from the Budget Office of the Federation show that MDAs received less than N1tn for capital expenditure in the first seven months of 2025. Although N18.53tn was appropriated for capital spending for “MDAs and others” in 2025, the January–July pro rata benchmark stood at N10.81tn. Actual releases during the period amounted to just N834.80bn, leaving a shortfall of about N9.98tn and translating to a performance rate of 7.72 per cent within the seven months.
