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 fast-track project execution and settle outstanding obligations.
The directive was issued at a stakeholders’ meeting on the implementation of the extended 2025 Capital Budget held at the Federal Ministry of Finance, Abuja.
In a statement 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 Ministries, Departments and Agencies had been instructed to comply strictly with the Public Procurement Act in executing and processing payments for capital projects under the 2025 and 2026 budgets.
The Minister of State for Finance, Mrs Doris Uzoka-Anite, emphasised that all capital disbursements must follow due process and be backed by available cash before execution.
She warned that no capital payment should be processed outside approved procurement procedures, stressing that adherence to the law was mandatory.
Uzoka-Anite added that the country has sufficient funds to settle outstanding obligations and urged MDAs to update their documentation to facilitate quicker processing of payments.
Providing further clarification, the Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, disclosed that the Government Integrated Financial Management Information System had been fully restored.
He reiterated that warrants had already been issued to MDAs and announced that Treasury House would commence implementation of the 30 per cent component of the 2025 capital budget by the end of next week.
According to the statement, 30 per cent of the 2025 Capital Budget will be implemented between now and November 30, 2026, while the remaining 70 per cent has been rolled over into the 2026 Capital Budget in line with the directive of President Bola Tinubu.
The development effectively means that a portion of last year’s capital allocations will now be executed within the current fiscal window, while the bulk has been carried forward into the 2026 capital framework to ensure continuity of ongoing projects.
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Earlier in his welcome address, the Director of Funds, Mr Steve Ehikhamenor, cautioned MDAs against exceeding approved allocations.
He urged agencies to avoid budget overruns, adhere strictly to approved project items and values, and ensure that any unutilised or excess funds are returned to the Treasury.
Ehikhamenor also advised MDAs to work closely with GIFMIS officials for technical support to avoid processing delays.
In December 2025, the Federal Government directed MDAs to carry over 70 per cent of their 2025 capital budget into the 2026 fiscal year as part of measures to prioritise completion of ongoing projects and manage spending pressures amid weak revenues.
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.
The circular had 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 budget.
However, the 30 per cent earmarked for 2025 was not released during the fiscal year, resulting in its deferral into 2026, amid concerns raised by ministers over funding constraints for capital projects.
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 January–July pro rata benchmark stood at N10.81tn.
Actual capital releases to MDAs and related entities during the period amounted to N834.80bn, indicating a pro rata shortfall of about N9.98tn and a performance rate of 7.72 per cent within the seven-month window.