FG Directs MDAs to Transfer 70% of 2025 Capital Funds Into 2026 Budget
Story: written by Myra December 9,2025
The Federal Government has instructed ministries, departments and agencies (MDAs) to roll over 70% of their 2025 capital budget into the 2026 fiscal year, as part of efforts to prioritise project completion in the face of revenue constraints and increasing fiscal pressures.
The directive is contained in the 2026 Abridged Budget Call Circular issued by the Ministry of Budget and Economic Planning and distributed to ministers, agency heads, service chiefs and other key officials. The circular outlines strict guidelines for preparing the 2026 budget, including a firm prohibition on adding new capital projects.
According to the document, MDAs must “upload 70 per cent of their 2025 FGN Budget to continue in FY2026” and ensure that rollover items fall within the administration’s priority areas—national security, economic expansion, education, healthcare, agriculture, infrastructure, power, energy and social protection.
‘Revenue limitations are shaping our decisions’
The circular explains that the government has adopted a new framework that limits 2026 capital budget ceilings to 70% of 2025 project allocations. Only 30% of 2025 capital funds will be released next year, while the remaining 70% will serve as the backbone of the 2026 capital budget.
The ministry said the policy is designed to prevent waste, strengthen continuity and ensure that partly executed projects are not abandoned. MDAs were also cautioned not to inflate their 2026 overhead submissions beyond the ceilings set for 2025, despite inflationary pressures.
“We are constrained by revenue challenges,” the circular stated. “While inflation is acknowledged, any proposals that exceed the approved ceilings will be reduced accordingly.”
2026 budget must align with national plans
The ministry added that the 2026 budget must fully reflect the priorities and 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.
The government emphasised that focus will remain on completing existing projects, streamlining expenditure and strengthening fiscal discipline as Nigeria navigates a challenging economic climate.
