The Federal Government has directed Ministries, Departments, and Agencies (MDAs) to rollover 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 rollover and uploads MUST be in line with the immediate needs of the country as well as government’s development priorities that aligns 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 percent of the 2025 capital budget would be released within the current fiscal year, allowing the remaining 70 percent to serve as the foundation for the 2026 capital budget, unlike the previous method of carryover.
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.
