The directive is contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning and circulated to ministers, service chiefs, heads of agencies and other senior officials in Abuja.
The circular emphasises that the 2026 budget will admit no new capital projects. Instead, MDAs are required to retain the allocations already approved in the 2025 budget and upload 70 percent of those provisions into their 2026 submissions. The ministry said the policy aligns with the administration’s priority areas—national security, economic stability, education, healthcare, agriculture, infrastructure, power and social protection.
According to the document, capital ceilings for 2026 have been set at 70 percent of the 2025 capital budget, with only 30 percent scheduled for release in the current fiscal year. The government said the shift will ensure continuity, reduce duplication and strengthen value for money.
The circular also directs MDAs not to exceed their 2025 overhead ceilings in the preparation of 2026 budgets. While acknowledging inflationary pressures, the ministry cited revenue constraints as a major reason for maintaining tight spending limits.
MDAs are further instructed to prepare their estimates in line with the 2026–2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper, the Renewed Hope Agenda and other national development plans.
They must submit their budget proposals via the GIFMIS Budget Preparation Subsystem, while government-owned enterprises are to submit through the Budget Information Management and Monitoring System. The deadline for all submissions is December 9, 2025.
Fiscal projections in the circular show rising debt service obligations, with debt service expected to increase from N13.94tn in 2025 to N15.52tn in 2026. Total capital expenditure will fall to N22.37tn from N26.19tn in 2025, while project-tied loans will drop from N3.36tn to N2.05tn. The fiscal deficit is expected to rise significantly to N20.12tn in 2026.
Some economists have criticised the timing and structure of the new budget preparation. Professor Sheriffdeen Tella of Olabisi Onabanjo University questioned the basis of projecting a N20tn deficit when the 2025 budget is yet to achieve measurable performance.
Similarly, the President of the Nigerian Economic Society, Professor Adeola Adenikinju, said the government is drifting away from the January–December budget cycle, creating unpredictability and weakening legislative scrutiny.
Despite the concerns, the government says its 2026 budget will prioritise ward-level development, infrastructure expansion, security and strengthening domestic production.
