Federal Government Extends Implementation of 30% of 2025 Capital Budget to November 2026

In a bid to clear outstanding obligations and accelerate the execution of projects, the Federal Government has announced that it will implement 30 percent of the 2025 capital budget before the end of November 2026.

The remaining 70 percent of last year’s capital allocations has been formally rolled over into the 2026 capital budget framework to prevent the disruption of ongoing projects, aligning with a directive from President Bola Tinubu.

This development was disclosed during a stakeholders’ meeting on the implementation of the extended 2025 Capital Budget held at the Federal Ministry of Finance in Abuja.

According to a statement released on Thursday by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa, Ministries, Departments, and Agencies (MDAs) have been strictly instructed to align their operations with the Public Procurement Act.

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During the meeting, the Minister of State for Finance, Mrs. Doris Uzoka-Anite, issued a firm directive requiring all capital disbursements to follow due process. She stressed that every capital project must be backed by cash before execution.

“No capital payment should be processed outside approved procurement procedures,” Uzoka-Anite warned.

Assuring stakeholders that the country has sufficient funds to settle outstanding obligations, she urged MDAs to urgently update their documentation to facilitate the swift processing of payments.

The Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi, further revealed that the Government Integrated Financial Management Information System (GIFMIS) has been completely restored.

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Warrants have already been issued to MDAs, and Treasury House is expected to kick off the implementation of the 30 percent component by the end of next week.

“Thirty percent of the 2025 Capital Budget will be implemented between now and 31 November 2026, while the remaining 70 percent has been rolled over into the 2026 Capital Budget to ensure seamless implementation,” Ogunjimi explained.

Director of Funds, Mr. Steve Ehikhamenor, also seized the opportunity to caution MDAs against exceeding approved budget allocations.

He advised agencies to stick strictly to approved project items and their corresponding values, warning them to return any unutilized funds to the Treasury and avoid budget overruns.

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The move comes after severe funding bottlenecks plagued the 2025 fiscal year. Due to weak revenues, the administration was forced to prioritize the completion of existing infrastructure.

Data from the Budget Office of the Federation previously revealed a massive funding gap, while N10.81 trillion was the pro-rata benchmark for capital expenditure from January to July 2025, actual releases to MDAs stood at a mere N834.80 billion, representing a performance rate of just 7.72 percent for that period.

The delayed release of the 30 percent earmarked for 2025 originally sparked concerns among ministers overseeing key infrastructure and service-delivery agencies.

With this new extension, the government aims to bridge the funding gap and deliver on critical infrastructural promises over the next nine months.