FG extends 30% of 2025 capital budget to November 2026 amid funding reset
The Federal Government has confirmed that 30 per cent of the 2025 capital allocation will now be implemented before the end of November 2026, marking a significant adjustment to the fiscal execution calendar as authorities seek to accelerate project delivery and clear pending obligations.
The decision, which effectively restructures the 2025–2026 capital expenditure framework, was announced at a stakeholders’ meeting in Abuja chaired by the Minister of State for Finance, Doris Uzoka-Anite. Senior officials from Ministries, Departments and Agencies (MDAs) were directed to strictly comply with procurement regulations and financial controls in implementing both the extended 2025 and current 2026 capital budgets.
Compliance directive as FG extends 30% of 2025 capital budget to November 2026
At the meeting, Uzoka-Anite stressed that capital disbursements must strictly adhere to the Public Procurement Act and that no payments would be processed outside approved procedures.
“All capital projects must be backed by cash before execution, and due process must be followed without exception,” she said, underscoring the government’s resolve to strengthen fiscal discipline.
The clarification comes months after an earlier directive that 70 per cent of the 2025 capital budget be rolled into the 2026 fiscal year to prioritise ongoing projects and manage spending pressures amid revenue constraints.
With the new timeline, the FG extends 30% of 2025 capital budget to November 2026 as part of a broader effort to prevent project abandonment and ensure continuity across multi-year infrastructure commitments.
Treasury system restored, warrants issued
Providing operational details, the Accountant-General of the Federation, Shamsedeen Babatunde Ogunjimi, confirmed that the Government Integrated Financial Management Information System (GIFMIS) had been fully restored after previous disruptions.
According to him, expenditure warrants have already been issued to MDAs, and Treasury House will commence implementation of the 30 per cent capital component within days.
He reiterated that the phased execution model was approved in line with the directive of President Bola Tinubu, adding that the structured rollover approach is intended to stabilise fiscal operations while maintaining oversight of capital spending.
The move means that while 70 per cent of the 2025 capital provisions now form part of the 2026 capital framework, the remaining 30 per cent will be executed within the extended window to close outstanding obligations.
Background to capital release shortfalls
The policy adjustment follows persistent concerns about low capital budget performance in 2025. Data from the Budget Office of the Federation indicate that although N18.53tn was appropriated for capital expenditure in 2025, actual releases to MDAs between January and July totalled just N834.80bn.
Against a pro rata benchmark of N10.81tn for the seven-month period, the performance rate stood at approximately 7.72 per cent — a gap that raised alarm among infrastructure-focused ministries and contractors.
The FG extends 30% of 2025 capital budget to November 2026 partly in response to these implementation gaps, as several ministers had previously expressed concern over the non-release of funds for critical projects.
Analysts say the revised approach effectively transitions Nigeria toward a modified capital budgeting cycle, reducing the risk of abrupt project suspension due to cash flow constraints.
Safeguards against overruns
In his remarks at the stakeholders’ session, the Director of Funds at the Office of the Accountant-General, Steve Ehikhamenor, cautioned MDAs against exceeding approved allocations.
He advised agencies to adhere strictly to the value of projects as captured in their warrants, avoid unauthorised variations and return any unutilised balances to the Treasury.
The emphasis on compliance suggests that while the FG extends 30% of 2025 capital budget to November 2026 to accelerate delivery, authorities remain wary of fiscal slippage or irregular procurement practices.
Officials also encouraged MDAs to collaborate closely with GIFMIS technical teams to resolve documentation bottlenecks that could delay payments.
Fiscal strategy and revenue pressures
The broader fiscal context underscores the rationale for the extension. Nigeria continues to grapple with revenue volatility, debt service pressures and rising recurrent expenditure demands.
By rolling forward a substantial portion of the 2025 capital allocation into 2026, the administration aims to synchronise spending with available cash resources rather than relying heavily on short-term borrowing.
Economists note that staggered implementation could improve liquidity management, though its success will depend on sustained revenue inflows and disciplined execution.
The FG extends 30% of 2025 capital budget to November 2026 as a stopgap measure to maintain momentum on infrastructure while recalibrating fiscal priorities within a constrained revenue environment.
Implications for infrastructure and growth
Capital expenditure plays a pivotal role in stimulating economic activity, particularly in transport, power, health and education infrastructure. Delays in disbursement often translate into project cost escalations and slower multiplier effects on growth.
By formally extending part of the 2025 capital allocation, authorities signal intent to reduce contractor arrears and revive stalled projects.
However, stakeholders caution that implementation speed must be balanced with transparency and accountability to avoid procurement disputes or audit queries.
Outlook for fiscal execution
The coming months will test the efficiency of the revised framework. If documentation requirements are met promptly and cash backing is ensured, the phased rollout could restore confidence among contractors and development partners.
The FG extends 30% of 2025 capital budget to November 2026 within a broader fiscal consolidation strategy aimed at safeguarding macroeconomic stability while sustaining infrastructure investment.
For policymakers, the challenge lies in ensuring that the restructured timeline translates into measurable project completion rates rather than another cycle of deferred obligations.
As the Treasury begins disbursements, close monitoring of execution metrics will determine whether the extension achieves its intended objective of accelerating capital delivery without compromising fiscal prudence.
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