FG to Execute 30% of 2025 Capital Budget by November 2026 as Revenue Pressures Persist
FG Limits 2025 Capital Releases, Rolls Over ₦18 Trillion to 2026
The Federal Government has announced a strategic shift in its fiscal calendar, confirming that only 30% of the 2025 capital budget will be implemented between now and 30 November 2026. The remaining 70% of capital projects originally slated for the 2025 fiscal year will be officially rolled over into the 2026 budget framework.
The Accountant-General of the Federation, Dr. Shamseldeen Babatunde Ogunjimi, disclosed this on Thursday during a stakeholders' meeting in Abuja. He revealed that warrants for the 30% component have already been issued to Ministries, Departments, and Agencies (MDAs), with disbursement expected to commence by late February 2026.
Addressing the "Budget Overlap" Crisis
This decision marks a significant departure from previous administration promises to end the practice of running multiple concurrent budgets by March 2026. Instead, the government is opting for a "phased transition" to manage severe revenue shortfalls.
According to the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the 2025 revenue performance has been significantly hampered by macroeconomic volatility. Out of a projected ₦40 trillion revenue for 2025, actual cash inflows totaled approximately ₦10 trillion as of late 2025 a ₦30 trillion deficit that necessitated the deferment of majority capital spending.
Priority on Completion and Procurement Integrity
The Minister of State for Finance, Mrs. Doris Uzoka-Anite, has directed MDAs to strictly adhere to the Public Procurement Act during this extended implementation period. She emphasized that no capital payments should be processed unless they are backed by verified cash availability and comply with transparent bidding processes.
The "30/70" split is intended to ensure that the government does not abandon existing projects. By rolling 70% of the 2025 allocation into 2026, the administration aims to create a "cleaner" baseline for the ₦58.18 trillion 2026 budget proposal currently before the National Assembly.
Legislative and Civic Reaction
The Senate Committee on Appropriations has expressed reservations regarding the extension. Lawmakers questioned the economic team's ability to deliver on the 2026 targets when the 2025 performance remains stalled. Senator Solomon Adeola (Olamilekan), Chairman of the Committee, warned that building the 2026 budget on "unrealistic" revenue assumptions could further widen the national debt, which saw ₦17.36 trillion in new borrowing during the first 10 months of 2025.
Similarly, civic-tech groups like BudgIT have called for greater transparency in the rollover process, noting that the persistent extension of budget cycles weakens the impact of capital investments and delays the delivery of essential infrastructure.
As the Federal Government moves toward a unified fiscal calendar, the November 2026 deadline for 2025 capital projects serves as a critical buffer. While the move offers a pragmatic solution to a liquidity crisis, its success depends on the government's ability to meet its 2026 non-oil revenue targets and restore investor confidence in Nigeria's public finance management.
