The Federal Government has instructed all Ministries, Departments, and Agencies (MDAs) to shift 70% of their 2025 capital budget allocations into the 2026 fiscal year.
This 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.
Under the new framework, the 2026 capital budget ceiling for every MDA will be limited to 70% of the projects already included in the 2025 capital budget. Only 30% of the 2025 capital allocation will be released next year, while the remaining 70% will serve as the basis for 2026 capital expenditure.
The circular also outlines strict rules for preparing the 2026 spending plan, including a ban on proposing new capital projects. The priority, according to the ministry, is the completion of ongoing projects amid revenue constraints and rising fiscal pressures.
MDAs are required to “upload 70 per cent of their 2025 FGN Budget to continue in FY2026” and must ensure that all rollover projects align with the administration’s core priorities: national security, economic growth, education, health, agriculture, infrastructure, power, energy, and social safety nets.
The ministry said the policy aims to strengthen continuity, avoid duplication, and prevent the abandonment of uncompleted capital projects.
It also warned MDAs not to exceed their 2025 overhead ceilings in their 2026 proposals, despite inflation.
“We are constrained by revenue challenges,” the circular stated. “While we note the impact of inflation, proposals that exceed approved ceilings will be adjusted downward.”
The 2026 budget must reflect the 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 are to submit their budgets using the GIFMIS Budget Preparation Subsystem, while government-owned enterprises must use the Budget Information Management and Monitoring System. All submissions are due by Tuesday, December 9, 2025.
Key Fiscal Projections
- Statutory transfers will drop from N3.64tn (2025) to N3.15tn (2026).
- Recurrent non-debt spending is projected at N15.26tn.
- Debt servicing will rise from N13.94tn (2025) to N15.52tn (2026).
- Aggregate capital expenditure will fall to N22.37tn, down from N26.19tn (2025).
- MDA capital allocations decline sharply from N12.39tn to N8.67tn.
- Project-tied loans will drop from N3.36tn to N2.05tn.
- The fiscal deficit will widen dramatically from N14.10tn (2025) to N20.12tn (2026).
Personnel costs have already been calculated using IPPIS data and earlier submissions, and each ministry will be notified of its personnel ceiling for 2026.
Total funds available to the Federal Government — including GOEs — are projected at N54.46tn for 2026, slightly lower than the N54.99tn projected for 2025.
