The Federal Government has ordered ministries, departments, and agencies to carry over 70 per cent of their 2025 capital budget into the 2026 fiscal year as the administration moves to prioritise the completion of existing projects and contain spending pressures in the face of weak revenues.
The Federal Ministry of Budget and Economic Planning’s 2026 Abridged Budget Call Circular, which was distributed to all ministers, service chiefs, agency heads, and senior government officials in Abuja, includes this directive.
The circular, according to reports, stipulated that all staff in charge of budget preparation were expected to completely comply with the stringent standards for the yearly budget projections. The circular made it plain that new capital projects would not be permitted during the 2026 budget preparations.
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It said that instead of looking for new initiatives, ministries and agencies should stick to the funds already authorized in the 2025 capital budget. According to the text, MDAs must upload 70% of their 2025 capital budget in order to continue the next year, and this must be done in accordance with national priorities.
It clarified that the rollover is predicated on the administration’s development priorities and the nation’s urgent requirements. National security, the economy, education, health, agriculture, infrastructure, power, and energy, as well as social safety nets including women’s and youth empowerment, were among the objectives that were mentioned as being in line with the government’s policy agenda.
According to the circular, “MDAs are to upload 70 per cent 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 which hinges on National Security, the Economy, Education, Health, Agriculture, Infrastructure, Power & Energy as well as social safety nets, women & youth empowerment.”
According to the circular, the government has put in place a structure that sets capital budget ceilings for 2026 at 70% of the project allocations for 2025. Additionally, it clarified that just 30% of the 2025 capital budget will be made public during the current fiscal year, with the remaining 70% acting as the basis for the 2026 capital budget in place of the conventional rollover mechanism.
It claimed that doing so would remove unnecessary redundancy and guarantee continuity for ongoing programs. The document emphasized that when preparing their 2026 proposals, ministries should not try to go over their overhead ceilings from 2025.
According to the circular, “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 in providing significantly more for overheads. We will, however, sustain the effort to achieve full release of the overhead budget.”
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Budget officers are not responsible for uploading any submissions on behalf of any ministry, department, or agency, the circular cautioned. According to the circular, the Budget Office has already created estimates for staff costs using data from the Integrated staff and Payroll Information System or previously submitted by ministries.
It stated that the staff capital budget for the 2026 fiscal year would be communicated to each ministry. The circular’s underlying financial structure revealed both an increasing debt payment obligation and a tighter income position. The Federal Government budget, which includes government-owned businesses, would have N54.46 trillion in 2026 as opposed to N54.99 trillion in 2025.
Speaking during a stakeholder engagement with the Nigeria International Non-Governmental Organization Forum in Abuja on Monday, Senator Abubakar Bagudu, Minister of Budget and Economic Planning, stated that the upcoming budget cycle will help the nation reach its $1 trillion economic goal.
He clarified that the Federal Executive Council-approved Medium-Term Expenditure Framework lays out the assumptions for the 2026 fiscal year, including production goals, income forecasts, and the new plan to promote community-level growth.
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