Abuja, December 16, 2025 – The Nigerian Federal Government has announced plans to roll over approximately 70% of the capital component of the 2025 budget into the 2026 fiscal year, as only 30% of the current year’s capital allocations are expected to be released and implemented by the end of 2025.
The directive, outlined in the 2026 Abridged Budget Call Circular issued by the Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, instructs all Ministries, Departments, and Agencies (MDAs) to base their 2026 capital budget ceilings on 70% of their approved 2025 project allocations. This move aims to prioritize the completion of ongoing projects, prevent duplication, and ensure continuity amid constrained revenues and rising debt service obligations.
The circular explicitly bans the introduction of new capital projects in the 2026 budget, requiring MDAs to continue only with existing allocations from the ₦54.99 trillion 2025 “Budget of Transformation.” Rollovers must align with national priorities, including national security, economic growth, education, health, agriculture, infrastructure, power and energy, and social safety nets.
Finance Minister Wale Edun confirmed the plan during an interactive session with the Senate Committee on Finance on December 15, stating that only about 30% of the 2025 budget has been fully funded so far. He noted that revenue projections for 2025 reached ₦40 trillion—up from ₦20 trillion in 2024—but actual collections have fallen short, necessitating a shift toward revenue generation over borrowing.
The policy replaces traditional full rollovers with a structured approach to stabilize implementation and avoid operating multiple budgets simultaneously. Projected resources available for the federal government in 2026 are slightly lower at ₦54.46 trillion.
Lawmakers have expressed concerns over slow budget releases and stalled projects, with some senators questioning the implications for constituency initiatives and contractor payments. The government has emphasized that the rollover will support the Renewed Hope Agenda and prevent abandonment of critical infrastructure.
Clarion Newschannel will continue to monitor developments as the 2026-2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper undergoes legislative review.
BREAKING: FG To Roll Over 70% of 2025 Capital Budget Into 2026 Amid Funding Challenges
