In a bold move aimed at fiscal prudence, the Federal Government has instructed all ministries, departments, and agencies (MDAs) to carry over at least 70 per cent of their 2025 capital budgets into the 2026 fiscal year. The directive is part of a broader effort to prioritize the completion of existing projects amid weak revenue inflows.
The instruction was detailed in the 2026 Abridged Budget Call Circular, issued by the Federal Ministry of Budget and Economic Planning and circulated to all ministers, service chiefs, heads of agencies, and top government officials in Abuja. It provides clear guidelines for budget preparation and expenditure management for the upcoming year.Government officials explained that the move is designed to reduce spending pressures while ensuring that ongoing projects receive adequate funding to reach completion. Nigeria has long faced challenges with abandoned or stalled capital projects, and the carryover approach seeks to address this persistent problem.
The circular emphasizes that MDAs must review their current projects critically and determine which initiatives can realistically be completed in 2026. Agencies are expected to submit detailed project implementation plans, including timelines, expected outcomes, and financial requirements.Financial analysts have welcomed the decision, noting that prioritizing completion over launching new projects can enhance efficiency, improve accountability, and increase the tangible benefits delivered to citizens. This approach also reduces waste and ensures that public funds are used effectively.By focusing on existing projects, the government hopes to instill greater fiscal discipline across all MDAs.
With revenue growth remaining constrained due to global economic pressures and fluctuating oil prices, limiting new expenditures is seen as a necessary step to maintain budget stability.The directive is also seen as a policy shift toward consolidation rather than expansion in government spending. Prioritizing ongoing projects could improve public perception of government efficiency, as citizens witness long-awaited infrastructure and services being delivered.While the focus is on capital expenditure, the circular indirectly encourages stricter oversight of recurrent spending. MDAs are urged to ensure that all funds are utilized responsibly, transparently, and in alignment with national development priorities.
The Federal Ministry of Budget and Economic Planning has assured MDAs of technical guidance during the budget preparation process. Agencies are expected to conduct cost-benefit analyses and coordinate closely with stakeholders to maximize the impact of the carried-over funds.As the 2026 budget cycle begins, the success of this strategy will depend on disciplined implementation, transparency, and rigorous monitoring. If executed effectively, this carryover policy could mark a significant step toward more efficient, results-oriented governance in Nigeria.
