The Digest:
The Federal Government has directed ministries, departments, and agencies to roll over 70% of their 2025 capital budgets into the 2026 fiscal year, prioritizing the completion of existing projects amid tight revenue conditions. The decision, outlined in the latest budget circular, prevents new capital projects in next year’s budget and aims to ensure continuity and curb wasteful spending.
Key Points:
- MDAs must upload 70% of their 2025 capital budgets for continuation in 2026
- No new capital projects will be introduced in the 2026 budget estimates
- The move prioritizes national security, infrastructure, health, agriculture, and power
- Only 30% of the 2025 capital budget will be released within this fiscal year
- Overhead spending must not exceed 2025 ceilings despite inflation pressures
- Debt service is projected to rise from ₦13.94tn to ₦15.52tn in 2026
- Economists are divided; some criticize fiscal indiscipline, others see it as necessary normalization
Sources: The Punch, Vanguard
