The Federal Government of Nigeria has announced plans to implement 30 per cent of the 2025 capital budget before the end of November 2026, while the remaining 70 per cent has been rolled over into the 2026 capital budget to ensure seamless project execution.
The decision follows directives to Ministries, Departments, and Agencies (MDAs) to strictly comply with procurement rules in the execution and payment of capital projects under the extended 2025 budget cycle.
In a statement on Thursday, the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa, said MDAs have been instructed to align fully with the Public Procurement Act in implementing the 2025 and 2026 capital budgets.
The Minister of State for Finance, Mrs Doris Uzoka-Anite, gave the directive during a stakeholders’ meeting on the extended 2025 Capital Budget at the Federal Ministry of Finance in Abuja, stressing that capital disbursements must follow due process.
“All capital payments must comply with the principles of the Procurement Act, and projects must be backed by cash before execution. No capital payment should be processed outside approved procurement procedures,” the statement quoted her as saying. She added that the country has sufficient funds to settle outstanding obligations and urged MDAs to update documentation to facilitate quicker processing.
Providing further clarity, the Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, disclosed that the Government Integrated Financial Management Information System (GIFMIS) has been fully restored. He announced that warrants had already been issued to MDAs and that Treasury House would begin implementation of the 30 per cent component of the 2025 budget by the end of next week.
“Thirty per cent of the 2025 Capital Budget will be implemented between now and 30 November 2026, while the remaining 70 per cent has been rolled over into the 2026 Capital Budget to ensure seamless implementation, in line with the directive of President Bola Tinubu,” Dr Ogunjimi said.
The decision ensures that a significant portion of last year’s capital allocations will now be executed within the current fiscal window, while the bulk has been incorporated into the 2026 framework to avoid disruption of ongoing projects.
The Director of Funds, Mr Steve Ehikhamenor, cautioned MDAs against exceeding approved allocations, urging strict adherence to project items and corresponding budget values, returning any unutilised funds to the Treasury, and collaborating with GIFMIS officials for technical support.
Data from the Budget Office of the Federation showed that while N18.53tn was appropriated for capital expenditure for MDAs and others in 2025, actual releases between January and July 2025 amounted to just N834.80bn, leaving a shortfall of about N9.98tn and a performance rate of only 7.72 per cent.
The move to implement part of the 2025 capital budget alongside the 2026 allocation is part of measures to fast-track project execution, settle pending obligations, and improve fiscal discipline across MDAs.
