The Federal Government of Nigeria has deferred 70 per cent of its 2025 capital budget to the 2026 fiscal year, citing the need to accelerate project execution while ensuring strict compliance with procurement regulations.
Government officials said only 30 per cent of the 2025 capital allocation would be implemented before the end of November 2026, with the balance rolled over to guarantee continuity of ongoing projects.
The directive was disclosed in a statement issued on Thursday by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation.
According to the statement, Ministries, Departments and Agencies (MDAs) have been instructed to strictly comply with the Public Procurement Act in executing and processing payments under both the extended 2025 budget cycle and the 2026 fiscal framework.
The Minister of State for Finance, Doris Uzoka-Anite, issued the directive during a stakeholders’ meeting on the implementation of the extended 2025 capital budget held at the Federal Ministry of Finance in Abuja.
She emphasised that all capital disbursements must follow due process and be backed by available cash before execution.
“No capital payment should be processed outside approved procurement procedures,” the minister warned, adding that the country has adequate funds to settle outstanding obligations once MDAs update the necessary documentation.
Also speaking, the Accountant-General of the Federation, Shamseldeen Ogunjimi, announced that the Government Integrated Financial Management Information System (GIFMIS) had been fully restored and that warrants had already been issued to MDAs.
He disclosed that Treasury House would begin implementing the 30 per cent component of the 2025 capital budget by the end of next week.
Ogunjimi explained that the remaining 70 per cent had been formally rolled into the 2026 capital budget in line with the directive of Bola Tinubu to ensure seamless execution of priority projects.
The decision effectively shifts a significant portion of last year’s capital allocations into the current fiscal window, with officials saying the move is intended to prevent disruption to ongoing infrastructure and service-delivery programmes.
Earlier, Director of Funds at the Office of the Accountant-General, Steve Ehikhamenor, cautioned MDAs against exceeding approved allocations, urging them to adhere strictly to project specifications, avoid budget overruns, and return any unutilised funds to the Treasury.
The development follows earlier directives contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning, which ordered MDAs to carry forward 70 per cent of their 2025 capital budgets.
Data from the Budget Office of the Federation indicated that capital releases in 2025 lagged significantly behind appropriations. While N18.53tn was earmarked for capital expenditure, only N834.8bn had been released to MDAs between January and July, representing a performance rate of just 7.72 per cent and leaving a shortfall of nearly N10tn.
Analysts say the rollover reflects ongoing fiscal constraints, including weak revenue performance and funding pressures, which have continued to limit the government’s ability to fully implement capital spending plans.
