The Federal Government has directed all ministries, departments and agencies to carry over 70 per cent of their 2025 capital projects into the 2026 fiscal year as it moves to prioritise ongoing projects and manage spending pressures caused by weak revenue performance.
The directive is contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning and circulated to ministers, service chiefs and heads of agencies in Abuja.
The circular stated that the preparation of the 2026 budget would not allow the introduction of new capital projects as MDAs are required to continue with projects already approved in the 2025 budget.
According to the document, only 30 per cent of the 2025 capital allocation would be released in the current fiscal year, while the remaining 70 per cent would form the foundation of the 2026 capital proposals.
It listed government priority areas to include national security, the economy, education, health, agriculture, infrastructure, power and energy, as well as social safety nets, including women and youth empowerment.
MDAs were also directed not to exceed their 2025 overhead ceilings when preparing their 2026 budget submissions despite rising inflation and the increasing cost of governance.
The financial framework attached to the circular showed that total funds available to the Federal Government in 2026 stand at N54.46tn, slightly lower than N54.99tn in 2025. Debt service is projected to rise from N13.94tn in 2025 to N15.52tn in 2026, while capital expenditure is expected to drop from N26.19tn to N22.37tn.
Reacting, economist Prof Sheriffdeen Tella expressed concern over the growing fiscal deficit and warned that overlapping budget cycles could weaken public finance management.
