FG REQUIRES MDAs TO UPLOAD 70 PERCENT OF 2025 BUDGET INTO 2026 FISCAL YEAR
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The Federal Government has told Ministries, Departments, and Agencies (MDAs) to move 70 percent of their 2025 capital budget to the 2026 fiscal year.
The 2026 Abridged Budget Call Circular, issued by the Federal Ministry of Budget and Economic Planning and sent to all ministers, service chiefs, heads of agencies, and other top government officials in Abuja, tells the government to concentrate its spending on finishing ongoing projects while dealing with the financial pressure from low revenue.
The circular said that the 2026 budget won’t include any new capital projects. This is because the annual budget plans have to follow strict rules, and everyone who helps make the budget has to follow these rules.
It also said that MDAs should use all the money already approved in the 2025 budget before asking for new projects.
It also said that the leftover money should be used for current needs and important areas that match the administration‘s development goals.
“MDAs are to upload 70 percent of their 2025 FGN budget to continue in FY2026. All such rollovers and uploads MUST be in line with the immediate needs of the country as well as the government’s development priorities that align 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 per cent of the 2025 capital budget would be released within the current fiscal year, allowing the remaining 70 per cent to serve as the foundation for the 2026 capital budget, unlike the previous method of carryover.
“MDAs are required to work within and not exceed their 2025 overhead ceilings (Executive Proposal) for the purpose of preparing their 2026 overhead budget submissions. While we note the impact of inflation on overhead costs, we are, however, constrained by revenue challenges in providing significantly more for overheads. We will, however, sustain the effort to achieve full release of the overhead budget,” the circular explained.
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.
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