By Progress Godfrey, Abuja
The Federal Government has directed Ministries, Departments, and Agencies (MDAs) to roll over 70 percent of their 2025 capital budget into the 2026 fiscal year.
Contained in the 2026 Abridged Budget Call Circular by the Federal Ministry of Budget and Economic Planning and circulated to all ministers, service chiefs, heads of agencies, and top government officials in Abuja, the directive requires the government to focus spending on completing current projects while managing fiscal pressure caused by weak revenues.
The circular stated that the 2026 budget would not allow the introduction of new capital projects, as the annual budget estimates must follow strict guidelines, ensuring that all officers responsible for budget preparation must comply.
It added that MDAs must fully utilise the allocations already approved in the 2025 budget before seeking new projects.
It further emphasised that the carryover is to focus on the current needs and focus areas in alignment with the administration’s development priorities.
“MDAs are to upload 70 percent of their 2025 FGN budget to continue in FY2026. All such rollovers and uploads MUST be in line with the immediate needs of the country as well as the government’s development priorities that align 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,” the circular stated.
To ensure continuity for ongoing projects and eliminate wasteful duplication, the circular warned ministries against attempts to exceed their overhead ceilings from 2025 when preparing their 2026 submissions, as the government had established a framework that sets capital budget ceilings for 2026 at 70 percent of the 2025 project allocations.
It also explained that only 30 per cent of the 2025 capital budget would be released within the current fiscal year, allowing the remaining 70 per cent to serve as the foundation for the 2026 capital budget, unlike the previous method of carryover.
“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,” the circular explained.
The circular stipulated that budget estimates must consider the policies and strategies contained in the 2026 to 2028 Medium Term Expenditure Framework and Fiscal Strategy Paper.
Vanguard recalls that the Minister of Budget and Economic Planning, Senator Abubakar Atiku, during a stakeholders’ engagement with International Non-Governmental Organisations in Abuja on Monday, said the next budget cycle will support the country’s $1 trillion economy target.
The minister explained that the Medium Term Expenditure Framework (MTEF) approved by the Federal Executive Council (FEC) sets out the assumptions for the 2026 fiscal year, including revenue projections, production targets and the new strategy to drive growth at the community level.
He said the 2026 budget would focus on key areas that support productivity amid global funding cuts. He outlined the Renewed Hope Agenda, the Renewed Hope Infrastructure Development Plan, the Ward Development Plan, the National Development Plan, and other programmes as pivot points that would drive the economy.
The circular said all expenditure would be properly scrutinised to allow only important spending to ensure value for money. It reaffirmed the government’s commitment to improving the efficiency and quality of spending to strengthen budget formulation, implementation, monitoring, and evaluation.
Financial Framework
The financial framework which followed the circular showed that the amount available for the budget, including government-owned enterprises, in 2026 is N54.46 trillion, 0.96 per cent less than N54.99 trillion in 2025.
Also, statutory transfers are estimated at N3.15 trillion in 2026. This is 13.45 per cent less when compared with N3.64 trillion for 2025, while recurrent non-debt expenditure is projected at N15.26 trillion.
Debt service increases by 10.73 per cent from N13.94 trillion in 2025 to N15.52 trillion in 2026. The circular added that aggregate capital expenditure is projected at N22.37 trillion in 2026, 14.59 per cent down from N26.19 trillion in the current year.
This is made up of capital supplementation, capital in statutory transfers, special intervention programmes, MDA’s capital expenditure, GOEs capital expenditure, grants, donor-funded projects, and project-tied loans. The amount available for MDA’s capital expenditure falls by 35.43 per cent from N12.39 trillion in 2025 to N8.67 trillion in 2026, while the volume of project-tied loans declines sharply from N3.36 trillion to N2.05 trillion, a 39 per cent fall.
The deficit also increases from N14.10 trillion in the current year to N20.12 trillion in 2026, showing a 35.19 per cent rise.
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