The Federal Government has instructed ministries, departments, and agencies to carry over at least 70 percent of their capital allocations for 2025 into the fiscal year 2026, as the administration seeks to focus on completing ongoing projects due to weak revenue and increasing fiscal pressures.

This directive is outlined in the 2026 Abridged Budget Call Circular released by the Ministry of Budget and Economic Planning, which has been distributed to ministers, service chiefs, and agency heads. The document provides detailed guidelines for drafting next year’s budget, including a prohibition on introducing new capital projects.

The circular specifies that MDAs are required to “upload 70 percent of their 2025 FGN Budget to continue in FY2026” and make sure that all rollover items adhere to the administration’s priorities, which include national security, economic growth, education, health, agriculture, infrastructure, power, energy, and social safety nets. It stated that the government has established a new framework that limits the capital budget ceilings for 2026 to 70 percent of the project allocations for 2025. Only 30 percent of this year's capital budget will be accessible in 2025, while the remaining 70 percent will serve as the basis for the next fiscal year's capital expenditures.

The ministry indicated that this policy aims to avoid duplication, enhance continuity, and ensure that ongoing projects are not left incomplete. It cautioned MDAs against attempting to surpass their 2025 overhead ceilings in their 2026 budget proposals, despite inflationary pressures. "We are facing revenue challenges," the circular stated. "While we acknowledge the effects of inflation, proposals that exceed approved ceilings will undergo downward adjustments."

The circular emphasized that the 2026 budget should align with the strategies outlined in the Medium-Term Expenditure Framework (2026–2028), the Renewed Hope Infrastructure Development Plan, the Ward Development Plan, the National Development Plan, as well as the Accelerated Stabilisation and Actualisation Plan. MDAs are required to submit their budgets through the GIFMIS Budget Preparation Subsystem, while government-owned enterprises will use the Budget Information Management and Monitoring System for their submissions. All submissions must be finalized by Tuesday, December 9, 2025. It also noted that personnel costs have been calculated based on data from IPPIS and previous submissions, with each ministry being notified of its personnel cost ceiling for 2026.

Financial projections that accompany the circular indicate a more limited revenue outlook for 2026. Total funds available to the Federal Government, including GOEs, are anticipated to be N54.46 trillion, a decrease from N54.99 trillion in 2025. Statutory transfers are expected to fall from N3.64 trillion in 2025 to N3.15 trillion in 2026, while recurrent non-debt expenditure is forecasted at N15.26 trillion.

Debt service obligations are projected to increase significantly, rising from N13.94 trillion this year to N15.52 trillion in 2026. Total capital expenditure is expected to be N22.37 trillion, down from N26.19 trillion in 2025. Capital allocations for MDAs are set to decrease from N12.39 trillion to N8.67 trillion, and project-tied loans are also expected to decrease from N3.36 trillion to N2.05 trillion. The deficit is anticipated to widen substantially to N20.12 trillion in 2026, compared to N14.10 trillion in the current year.