The Federal Authorities has instructed ministries, departments, and businesses (MDAs) to roll over 70% of their 2025 capital price range into the 2026 fiscal 12 months.
The measure is a part of efforts to finish current tasks and scale back new spending pressures amid tight revenues.
The order is contained within the 2026 Abridged Funds Name Round issued by the Federal Ministry of Funds and Financial Planning and circulated to ministers, service chiefs, heads of businesses, and different senior officers.
The doc acknowledged that annual price range estimates should observe strict guidelines, and officers accountable for price range preparation should comply.
The round made clear that the 2026 price range course of is not going to admit new capital tasks. As a substitute, MDAs should proceed with allocations already permitted within the 2025 price range. It famous that the rollover have to be in line with nationwide priorities and speedy wants.
Based on the directive, “MDAs are to add 70% of their 2025 FGN Funds to proceed in FY2026. All such rollover and uploads MUST be according to the speedy wants of the nation in addition to authorities’s improvement priorities that aligns with the coverage course of the brand new administration.”
Authorities priorities have been listed as nationwide safety, the economic system, schooling, well being, agriculture, infrastructure, energy and vitality, and social security nets, together with ladies and youth empowerment.
Solely 30% of 2025 capital price range will likely be carried out this 12 months
Beneath the brand new framework, capital price range ceilings for 2026 are set at 70% of 2025 venture allocations. Solely 30% of the 2025 capital price range will likely be launched inside the present 12 months. The remaining 70% kinds the premise of the 2026 capital price range, changing the earlier follow of a full rollover.
The round argued that the shift will guarantee continuity and get rid of wasteful duplication. MDAs are warned to not exceed their 2025 overhead ceilings when making ready submissions for 2026. The doc acknowledged inflationary pressures on overheads however stated authorities revenues stay weak.
“MDAs are required to work inside and never exceed their 2025 overhead ceilings (Govt Proposal) for the aim of making ready their 2026 Overhead price range submissions. Whereas we word the impression of inflation on overhead prices, we’re, nonetheless, constrained by income challenges,” the round acknowledged.
Funds estimates should observe the insurance policies within the 2026–2028 Medium Time period Expenditure Framework (MTEF) and Fiscal Technique Paper, described because the Federal Authorities’s pre-budget assertion. The doc referred to the administration’s priorities underneath the Renewed Hope Agenda, together with the Renewed Hope Infrastructure Growth Plan, Ward Growth Plan, Nationwide Growth Plan and the Accelerated Stabilisation and Actualisation Plan.
All expenditure will likely be scrutinised to permit solely important spending and guarantee worth for cash. The federal government is dedicated to enhancing the effectivity and high quality of spending and strengthening price range formulation, implementation, monitoring and analysis.
MDAs should make submissions on-line by way of the GIFMIS Funds Preparation Subsystem. Authorities-owned enterprises should submit by way of the Funds Info Administration and Monitoring System. All submissions have to be accomplished by December 9, 2025. The round added that price range officers are usually not accountable for importing submissions on behalf of any MDA.
Decrease capital spending, increased debt service and rising deficit
The monetary framework hooked up to the round signifies a tighter income outlook as debt service rises. Out there assets for the Federal Authorities and government-owned enterprises drop barely from N54.99 trillion in 2025 to N54.46 trillion in 2026.
Statutory transfers fall from N3.64tn in 2025 to N3.15tn in 2026. Recurrent non-debt expenditure is projected at N15.26 trillion, whereas debt service rises from N13.94 trillion to N15.52 trillion.
Combination capital spending declines from N26.19 trillion to N22.37 trillion subsequent 12 months. The capital price range contains supplementation, statutory transfers, particular intervention programmes, MDAs capital, GOEs capital, grants, donor-funded tasks and project-tied loans.
Funds accessible for MDAs capital expenditure drop from N12.39 trillion in 2025 to N8.67 trillion in 2026. Venture-tied loans fall sharply from N3.36 trillion to N2.05 trillion.
The deficit widens from N14.10 trillion within the present fiscal 12 months to N20.12 trillion in 2026, reflecting increased debt service and decrease accessible capital allocations.
What it is best to know
Nigeria now routinely operates with overlapping budgets, a follow that intensified from round 2023 when the federal authorities started extending fundamental and supplementary budgets into subsequent fiscal years.
By 2024, a number of devices have been energetic on the identical time, together with the 2023 fundamental and supplementary budgets, the 2024 fundamental price range and a 2024 supplementary price range, whilst a brand new appropriation was launched.
The Funds Workplace has defended the association, saying delayed implementation and multi-year tasks make it authorized and a part of ongoing reforms, although analysts argue it weakens accountability and disrupts the January–December cycle.