The Federal Government has directed all Ministries, Departments, and Agencies (MDAs) to roll over 70 percent of their 2025 capital budget into the 2026 fiscal year.
The directive, contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning and circulated to ministers, service chiefs, agency heads, and senior government officials, is aimed at prioritising completion of ongoing projects while managing fiscal pressures arising from weak revenues.
According to the circular, no new capital projects will be allowed in the 2026 budget, as all budget estimates must strictly adhere to established guidelines.
MDAs are required to fully utilise the funds already approved for 2025 before proposing any new initiatives.
The document emphasised that the rollover directive aligns with the administration’s focus on national security, economic stability, education, health, agriculture, infrastructure, power, energy, social safety nets, and women and youth empowerment.
“MDAs are to upload 70 percent of their 2025 FGN budget to continue in FY2026.
All such rollovers and uploads MUST align with the immediate needs of the country and the development priorities of the new administration,” the circular noted.
To ensure continuity and prevent duplication of projects, the circular warned MDAs against exceeding their 2025 overhead ceilings while preparing submissions for 2026.
It added that capital budget ceilings for the 2026 fiscal year have been set at 70 percent of 2025 capital project allocations.
The government also clarified that only 30 percent of the 2025 capital budget will be released within the current fiscal year, while the remaining 70 percent will form the foundation of the 2026 capital budget deviating from the previous carryover method.
Despite rising inflation, the circular said MDAs must work within existing overhead limits due to revenue challenges but assured that efforts to fully release approved overhead funds would be sustained.
It further stated that all budget estimates for 2026 must be consistent with the policy direction of the administration and align with the 2026–2028 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).