The Federal Government has instructed Ministries, Departments, and Agencies (MDAs) to carry over 70 per cent of their capital allocations for 2025 into the fiscal year 2026.
This directive is outlined in the 2026 Abridged Budget Call Circular issued by the Ministry of Budget and Economic Planning, which has been disseminated to ministers, service chiefs, and agency heads.
The circular states that the government has adopted a new framework limiting all 2026 capital budget ceilings to 70 per cent of 2025 project allocations.
Only 30 per cent of this year’s capital budget will be disbursed in 2025, while the remaining 70 per cent will underpin capital spending for the following year.
It delineates strict guidelines for preparing next year’s spending plan, including a prohibition on introducing new capital projects.
According to the circular, the administration prioritises the completion of ongoing projects amid weak revenue streams and mounting fiscal pressures.
MDAs are required to “upload 70 per cent 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 has stated that the policy aims to prevent duplication, enhance continuity, and ensure that unfinished projects are not neglected.
MDAs have been cautioned against attempting to exceed their 2025 overhead ceilings in their submissions for 2026, despite inflationary pressures.
“We are constrained by revenue challenges,” the circular noted. “While we acknowledge the impact of inflation, proposals that exceed approved ceilings will be adjusted downwards.”
The circular specifies that the 2026 budget must reflect strategies outlined in the Medium-Term Expenditure Framework (2026–2028), the Renewed Hope Infrastructure Development Plan, the Ward Development Plan, the National Development Plan, and the Accelerated Stabilisation and Actualisation Plan.
MDAs must submit their budgets through the GIFMIS Budget Preparation Subsystem, while government-owned enterprises will do so via the Budget Information Management and Monitoring System. All submissions must be completed by Tuesday, 9 December 2025.
Statutory transfers are projected to decrease from £3.64 trillion in 2025 to £3.15 trillion in 2026, while recurrent non-debt expenditure is estimated at £15.26 trillion.
Debt service obligations are expected to rise sharply—from £13.94 trillion this year to £15.52 trillion in 2026.
Aggregate capital expenditure is projected at £22.37 trillion, down from £26.19 trillion in 2025. Capital allocations for MDAs will fall from £12.39 trillion to £8.67 trillion, while project-tied loans will reduce from £3.36 trillion to £2.05 trillion.
The deficit is set to widen significantly to £20.12 trillion in 2026, up from £14.10 trillion in the current year.
Personnel costs have already been calculated using data from IPPIS and earlier submissions, as noted in the circular. Each ministry will be informed of its personnel cost ceiling for 2026.
The financial projections accompanying the circular indicate a more constrained revenue outlook for 2026.
Total funds available to the Federal Government, including GOEs, are projected at £54.46 trillion, a slight decline from £54.99 trillion in 2025.
