Project funding delayed as FG moves 70% of 2025 capital plan forward

The Federal Government has announced that only 30 per cent of the 2025 capital budget will be implemented before the end of November, while the remaining 70 per cent has been deferred to the 2026 fiscal year to ensure continuity of ongoing projects.

The decision forms part of efforts to accelerate project execution and settle outstanding obligations under the extended 2025 budget cycle.

In a statement issued by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Ministries, Departments and Agencies were directed to strictly comply with procurement regulations in implementing both the 2025 and 2026 capital budgets.

The Minister of State for Finance, Doris Uzoka-Anite, gave the directive during a stakeholders’ meeting at the Federal Ministry of Finance in Abuja, stressing that all capital disbursements must follow due process.

She warned that capital projects must be backed by cash before execution and that no payments should be processed outside approved procurement procedures.

The minister added that the government has adequate resources to clear pending obligations and urged MDAs to update documentation to speed up payment processing.

Providing further details, the Accountant-General of the Federation, Shamseldeen Ogunjimi, said the Government Integrated Financial Management Information System had been fully restored and that warrants had already been issued to MDAs.

According to him, Treasury House will begin implementing the 30 per cent component of the 2025 capital budget by the end of next week, while the balance has been rolled into the 2026 budget framework in line with the directive of President Bola Tinubu.

The move effectively shifts a significant portion of last year’s capital spending into the current fiscal window to prevent disruption of ongoing projects.

Earlier, Director of Funds Steve Ehikhamenor cautioned MDAs against exceeding approved allocations, urging them to avoid budget overruns, adhere strictly to project provisions and return any unused funds to the Treasury.

The development follows an earlier directive contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning, which instructed agencies to carry over most of their 2025 capital allocations into 2026.

Funding challenges had slowed capital implementation. Data from the Budget Office showed that although N18.53tn was appropriated for capital expenditure in 2025, MDAs received less than N1tn for projects in the first seven months of the year.

Between January and July, actual releases stood at about N834.8bn against a pro-rata benchmark of N10.81tn, leaving a shortfall of nearly N10tn and a performance rate of just 7.72 per cent.

Officials say the rollover approach is intended to prioritise completion of existing projects, ease spending pressures, and improve budget execution going forward.