The Federal Government has directed that 70% of the 2025 capital budget allocations for ministries, departments and agencies (MDAs) be rolled over into the 2026 fiscal year. The move forms part of a broader cost-containment and fiscal-prudence strategy as Nigeria grapples with weak revenues and rising economic pressures.
Why the Roll-over?
According to the official 2026 Budget-Call Circular issued by the Ministry of Budget and Economic Planning, the decision reflects the need to prioritise existing, ongoing projects over launching new ones. The government says the focus now is on completing projects already in motion, avoiding duplication, and making efficient use of limited resources amid fiscal constraints.
The circular also sets strict budget ceilings: overheads cannot exceed 2025 limits for 2026 submissions, even though inflation has pushed up operational costs.
Key Implications for Projects and Governance
- Delay in New Projects: Under the directive, no new capital projects will be included in the 2026 budget. This means many planned initiatives — from infrastructure to new facilities — may be postponed or scrapped for now.
- Continuity over Expansion: The government emphasises that the roll-over should cover priority sectors such as security, education, health, infrastructure, energy, agriculture, and social welfare. The aim is to ensure that existing commitments are honoured rather than overextend scarce funds.
- Strain from Revenue Shortfalls: The decision comes against a backdrop of tighter fiscal space: projected revenues are subdued, while debt-service obligations are rising. In this context, the roll-over is seen as a way to avoid widening deficits or delaying recurrent obligations.
Diverse Reactions — Supporters vs Critics
Economists and development experts have responded with varying opinions:
- Some argue that the roll-over reflects necessary fiscal discipline. They contend that prioritising completion of ongoing projects — rather than spreading resources thinly over many new ones — is more sustainable given Nigeria’s economic constraints.
- Others warn of negative consequences for service delivery. According to critics, many capital-intensive projects that Nigerians expected to see completed may now be delayed, impairing infrastructure development and public welfare.
- There are also concerns about oversight and transparency. Extending projects across years increases the risk of mismanagement or abandonment if tracking and accountability mechanisms are weak.
What’s Next — What to Watch
- Implementation and Monitoring: How effectively the roll-over instruction is implemented will matter. Whether MDAs complete existing projects before the new fiscal year begins will reveal the seriousness of the government’s commitment to good budget management.
- Impact on Planned Infrastructure: Citizens and stakeholders will watch how delays in new capital projects affect infrastructure expansion, social services, and economic recovery.
- Budget Discipline and Economic Outlook: The decision offers a snapshot of broader economic realities: it signals shrinking fiscal space, rising debt-service load, and the need for macroeconomic reforms to restore investor confidence and revenue generation capacity.
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