FG begins payments for 2024 capital projects, targets full rollout by March
Nigeria’s fiscal authorities have moved to unlock long-delayed infrastructure spending as the FG begins payments for 2024 capital projects, signalling a renewed push to stimulate economic activity and clear inherited obligations.
The announcement, made on Friday by the Special Adviser on Media and Public Communication to President Bola Tinubu, Sunday Dare, confirms that disbursements for outstanding capital commitments under the 2024 budget cycle are now underway.
The development comes amid broader efforts by the administration to accelerate budget execution and restore confidence among contractors and investors.
According to Dare, all Ministries, Departments and Agencies (MDAs) have been directed to submit their cash plans for the 2025 fiscal year by close of business on Monday, February 23, 2026.
Once those submissions are uploaded and validated, payment processing will commence immediately.
The directive is part of a coordinated strategy to ensure that when the FG begins payments for 2024 capital projects, it does so alongside preparations for seamless implementation of the 2025 capital framework.
Clearing backlogs, restoring credibility
Government sources say the move is designed not only to finance ongoing infrastructure works but also to settle outstanding liabilities accumulated over multiple fiscal cycles. Officials indicated that the settlement of debts inherited from previous administrations is proceeding in parallel with the current disbursements.
The Minister of State for Finance, Doris Uzoka-Anite, had earlier assured lawmakers that outstanding capital payments tied to both the 2024 and 2025 budgets would be processed before the end of March 2026.
She gave the assurance during an interactive session between the Senate Committee on Appropriations and the Federal Government’s economic management team on the proposed N58.472 trillion 2026 Appropriation Bill.
At that session, Uzoka-Anite emphasised that improvements to the federal financial management system have paved the way for more predictable and transparent disbursement processes.
She urged MDAs to complete all documentation requirements promptly to avoid bottlenecks.
With the FG beginning payments for 2024 capital projects, attention has now shifted to execution discipline—ensuring that appropriated funds translate into measurable project milestones rather than remaining idle in bureaucratic pipelines.
March 31 deadline for capital implementation
Officials disclosed that the administration is targeting full implementation of the capital components of both the 2024 and 2025 budgets on or before March 31, 2026.
This ambitious timeline reflects the government’s intent to compress spending cycles and prevent the carryover of capital obligations into subsequent fiscal years.
Analysts note that delayed capital releases have historically undermined infrastructure delivery in Nigeria, with contractors frequently forced to suspend works due to liquidity constraints.
By accelerating payments, authorities hope to re-energise sectors such as transportation, power, housing, water resources, and health infrastructure.
The presence of key members of the economic team at the Senate session—including the Minister of Budget and Economic Planning, Atiku Bagudu, and the Accountant-General of the Federation, Shamsedeen Babatunde Ogunjimi—underscored the coordinated approach behind the rollout.
Following the public engagement, lawmakers proceeded into a closed-door session before adjourning further deliberations on the 2026 budget proposal.
Economic implications
The decision to activate disbursements as the FG begins payments for 2024 capital projects carries significant macroeconomic implications.
Capital expenditure is widely regarded as a critical lever for economic expansion, particularly in an environment where private sector investment remains cautious.
Infrastructure outlays tend to have high multiplier effects, stimulating employment, boosting demand for local materials, and improving productivity across value chains.
Timely payment to contractors also helps stabilise cash flows in the construction and engineering ecosystem, reducing the risk of project abandonment.
However, fiscal analysts caution that accelerated capital spending must be balanced against revenue performance and debt sustainability considerations.
Nigeria’s budget framework has faced persistent pressure from debt servicing costs and subsidy-related obligations in recent years.
For the current strategy to yield durable gains, experts argue that payment efficiency must be matched by rigorous project monitoring, value-for-money audits, and strict adherence to procurement standards.
Digital compliance and accountability
A notable feature of the latest directive is the requirement for MDAs to upload their 2025 cash plans digitally within a defined timeline. This measure is expected to enhance transparency, reduce manual processing delays, and create an auditable trail for disbursements.
Officials familiar with the process say the integration of digital submission protocols will allow the Ministry of Finance to sequence payments more effectively and align them with revenue inflows.
As the FG begins payments for 2024 capital projects, stakeholders will be watching closely to assess whether the new procedures translate into faster turnaround times and reduced bureaucratic friction.
With the March 31 deadline fast approaching, the coming weeks will be critical in determining whether the Federal Government can meet its capital execution targets.
The administration’s commitment to clearing arrears and enforcing cash-plan discipline represents a decisive step toward restoring fiscal momentum.
If sustained, the policy could mark a turning point in Nigeria’s public investment cycle—strengthening contractor confidence, accelerating infrastructure delivery, and reinforcing the credibility of the annual budget process.
