The Federal Government has announced plans to implement 30 per cent of the 2025 capital budget before the end of November as part of efforts to accelerate project delivery and settle outstanding liabilities.
It said the remaining 70 per cent has been rolled over into the 2026 capital budget to ensure continuity and avoid disruptions to ongoing projects. The decision follows a directive to Ministries, Departments, and Agencies to strictly adhere to procurement regulations in executing and paying for projects under the extended 2025 budget cycle.
In a statement issued on Thursday by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa, the government said MDAs had been directed to fully comply with the Public Procurement Act in implementing both 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. She stressed that all capital disbursements must strictly follow due process.
According to the statement, Uzoka-Anite emphasised that capital payments must comply with the provisions of the Procurement Act and that projects must be cash-backed before execution. She warned that no payments would be processed outside approved procurement procedures.
She added that the government has sufficient funds to clear outstanding obligations and urged MDAs to update and regularise their documentation to enable faster processing of payments.
The Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, disclosed that the Government Integrated Financial Management Information System had been fully restored. He noted that warrants had already been issued to MDAs and announced that Treasury House would commence implementation of the 30 per cent portion of the 2025 budget by the end of next week.
Ogunjimi explained that the 30 per cent of the 2025 Capital Budget would be implemented between now and November 30, 2026, while the remaining 70 per cent has been carried forward into the 2026 Capital Budget in line with the directive of President Bola Tinubu.
The move means a portion of last year’s capital allocations will now be executed within the current fiscal window, while the larger share has been integrated into the 2026 framework to maintain continuity in project implementation.
Earlier, the Director of Funds, Mr Steve Ehikhamenor, cautioned MDAs against exceeding approved allocations. He advised them to avoid budget overruns, stick strictly to approved project items and values, and ensure they do not exceed the amounts specified in their warrants. He also directed agencies to return any unspent or excess funds to the Treasury and to work closely with GIFMIS officials for technical support.
In December 2025, the Federal Government had instructed MDAs to carry forward 70 per cent of their 2025 capital budgets into 2026, as part of measures to prioritise ongoing projects and manage spending pressures amid weak revenue performance.
The directive was contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning and circulated to ministers, service chiefs, and heads of agencies in Abuja. The circular stated that only 30 per cent of the 2025 capital budget would be released within the year, with the remaining 70 per cent forming the basis of the 2026 capital framework.
However, the 30 per cent earmarked for release in 2025 was not disbursed, leading to its deferral into 2026, as several ministers raised concerns over funding constraints for capital projects.
Previous reports by The PUNCH indicated that key infrastructure and service-delivery ministries faced significant funding shortfalls, with MDAs receiving less than N1tn for capital projects in the first seven months of 2025.
Data from the Budget Office of the Federation’s Medium-Term Expenditure Framework and Fiscal Strategy Paper (2026–2028) showed that although N18.53tn was appropriated for capital expenditure for “MDAs and others” in 2025, the pro rata benchmark for January to July stood at N10.81tn.
Actual capital releases during the period, however, amounted to only N834.80bn, resulting in a pro rata shortfall of approximately N9.98tn and a performance rate of just 7.72 per cent within the seven-month period.