The Federal Government has directed Ministries, Departments and Agencies, (MDAs), to carry over 70% of their 2025 capital allocations into the 2026 fiscal year.
The directive is contained in the 2026 Abridged Budget Call Circular issued by the Ministry of Budget and Economic Planning and circulated to ministers, service chiefs, and heads of agencies.
According to the circular, the government had adopted a new framework that caps all 2026 capital budget ceilings at 70% of 2025 project allocations.
Only 30% of this year’s capital budget will be released in 2025, while the remaining 70% forms the foundation of next year’s capital spending. It laid out strict guidelines for preparing next year’s spending plan, including a ban on introducing new capital projects.
According to the circular, the administration prioritises completing ongoing projects amid weak revenues and rising fiscal pressures.
It said MDAs must “upload 70% of their 2025 FGN Budget to continue in FY2026” and ensure that all rollover items align with the administration’s priorities—national security, economic growth, education, health, agriculture, infrastructure, power, energy, and social safety nets.
The ministry said the policy is meant to prevent duplication, strengthen continuity and ensure that uncompleted projects are not abandoned.
It warned MDAs against attempting to exceed their 2025 overhead ceilings in their 2026 submissions, despite inflationary pressures. “We are constrained by revenue challenges. While we note the impact of inflation, proposals that exceed approved ceilings will be adjusted downward”, the circular stated.
The circular said the 2026 budget must reflect the strategies in the Medium-Term Expenditure Framework (2026–2028), the Renewed Hope Infrastructure Development Plan, the Ward Development Plan and the National Development Plan, as well as the Accelerated Stabilisation and Actualisation Plan.
MDAs must submit their budgets through the GIFMIS Budget Preparation Subsystem, while government-owned enterprises will submit via the Budget Information Management and Monitoring System. All submissions must be completed by Tuesday, December 9, 2025.
Statutory transfers are projected to drop from ₦3.64trillion in 2025 to ₦3.15trillion in 2026, while recurrent non-debt expenditure is estimated at ₦15.26trillion. Debt service obligations are set to rise sharply – from N13.94tn this year to N15.52tn in 2026.
Aggregate capital expenditure is projected at ₦22.37trillion, down from ₦26.19trillion in 2025. Capital allocations for MDAs fall from ₦12.39trillion to ₦8.67trillion, while project-tied loans will shrink from ₦3.36trillion to N2.05trillion.
The deficit widens significantly to ₦20.12trillion in 2026, from ₦14.10trillion in the current year.
The financial projections accompanying the circular show a more constrained revenue outlook for 2026. Total funds available to the Federal Government, including GOEs, are projected at ₦54.46trillion, down slightly from ₦54.99trillion in 2025.
