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FG Directs MDAs To Defer 70% of 2025 Capital Budget to 2026

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Tinubu 2025 budget

By Adedapo Adesanya

The federal government has directed Ministries, Departments and Agencies (MDAs) to carry over 70 per cent of their 2025 capital allocations into the 2026 fiscal year.

The directive was contained in the 2026 Abridged Budget Call Circular issued by the Ministry of Budget and Economic Planning and circulated to ministers, service chiefs, and heads of agencies.

The circular said the government had adopted a new framework that caps all 2026 capital budget ceilings at 70 per cent of 2025 project allocations.

Only 30 per cent of this year’s capital budget will be released in 2025, while the remaining 70 per cent forms the foundation of next year’s capital spending.

The notice laid out strict guidelines for preparing next year’s spending plan, including a ban on introducing new capital projects, noting that the administration prioritises completing ongoing projects amid weak revenues and rising fiscal pressures.

It said MDAs must “upload 70 per cent of their 2025 FGN Budget to continue in FY2026” and ensure that all rollover items align with the administration’s priorities—national security, economic growth, education, health, agriculture, infrastructure, power, energy, and social safety nets.

The ministry said the policy is meant to prevent duplication, strengthen continuity and ensure that uncompleted projects are not abandoned, warning MDAs against attempting to exceed their 2025 overhead ceilings in their 2026 submissions, despite inflationary pressures.

“We are constrained by revenue challenges,” the circular said. “While we note the impact of inflation, proposals that exceed approved ceilings will be adjusted downward.”

The directive said the 2026 budget must reflect the strategies in the Medium-Term Expenditure Framework (2026–2028), the Renewed Hope Infrastructure Development Plan, the Ward Development Plan and the National Development Plan, as well as the Accelerated Stabilisation and Actualisation Plan.

MDAs must submit their budgets through the GIFMIS Budget Preparation Subsystem, while government-owned enterprises will submit via the Budget Information Management and Monitoring System. All submissions must be completed by Tuesday, December 9, 2025.

Statutory transfers are projected to drop from N3.64tn in 2025 to N3.15 trillion in 2026, while recurrent non-debt expenditure is estimated at N15.26 trillion.

Debt service obligations are set to rise sharply from N13.94 trillion this year to N15.52 trillion in 2026.

Aggregate capital expenditure is projected at N22.37 trillion, down from N26.19 trillion in 2025. Capital allocations for MDAs fall from N12.39 trillion to N8.67 trillion, while project-tied loans will shrink from N3.36 trillion to N2.05 trillion.

The deficit widens significantly to N20.12 trillion in 2026, from N14.10 trillion in the current year.

Personnel costs have already been computed using data from IPPIS and earlier submissions, the circular noted. Each ministry will be informed of its personnel cost ceiling for 2026.

The financial projections accompanying the circular show a more constrained revenue outlook for 2026.

Total funds available to the Federal Government, including GOEs, are projected at N54.46 trillion, down slightly from N54.99 trillion in 2025.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Military Must Apologise for Disrupting Nigeria’s Democratic Path—Banwo

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By Modupe Gbadeyanka

For disrupting Nigeria’s democratic path and weakening its institutions, the military must tender an apology to the nation, foremost public commentator, Mr Ope Banwo, has submitted.

The legal practitioner, who called for a national reckoning, insisted that an apology would acknowledge the harm caused by repeated military interventions and reaffirm the supremacy of the constitution.

Speaking on the recently commemorated Armed Forces Remembrance Day, Mr Banwo argued that decades of political intervention by the military disrupted the country’s democratic growth.

According to him, repeated military takeovers did not rescue the country from early post-independence challenges but instead deepened instability and entrenched authoritarian governance.

‎‎While acknowledging that Nigeria’s early civilian leaders contributed to political chaos through electoral malpractice and ethnic tensions, he maintained that military coups worsened the situation, noting that the first coup in 1966 triggered a cycle of interventions that culminated in civil war, institutional breakdown, and long-term political trauma.

‎He emphasised that successive military regimes promised to fight corruption, restore discipline, and sanitise governance, but failed to deliver lasting reforms.

‎‎“Rather than ending corruption, they professionalised it,” he posited, adding that military rule created a powerful elite class that continues to wield influence in politics and business long after the return to civilian rule.

Mr ‎Banwo further argued that the military never fully relinquished power, but merely exchanged uniforms for civilian attire, leaving behind a culture where constitutional authority is often treated as optional, stressing that in democratic societies, the armed forces must remain subordinate to civilian leadership, warning against any renewed appetite for military intervention in governance.

‎‎“The military is not Nigeria’s emergency solution to political failure,” he disclosed, urging the armed forces to focus on their constitutional responsibility of securing the country amid rising insecurity.

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Housing Deficit: FG to Prioritize Use of Local Materials

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By Adedapo Adesanya

The federal government has said it would prioritize the use of local materials to drive its new reform agenda that will close the housing deficit in the country.

This was disclosed by the Minister of Housing and Urban Development, Mr Ahmed Musa Dangiwa, at the 14th National Council on Lands, Housing and Urban Development meeting on Monday in Ilorin, the Kwara State capital.

He said Nigeria’s housing deficit, estimated in tens of millions, remains one of the most pressing social and economic challenges, driven by rapid urbanisation, population growth and rising construction costs, noting that the new policy framework is expected to shape housing delivery, land administration and urban development planning across the federation in the coming years.

Speaking at the event, the Minister, represented by the Director of Planning, Research and Statistics of the ministry, Mr Mukhtar Ilyasu, said the government has placed effective land management at the centre of its housing delivery strategy, describing land administration as the foundation for expanding access to affordable housing nationwide.

According to him, urban renewal and regeneration have now been adopted as national policy tools for modernising Nigerian cities, addressing uncontrolled urban growth and responding to population pressure and climate challenges.

He said the government is also prioritising the large-scale adoption of locally sourced building materials and technologies as a cost reduction strategy aimed at making housing more affordable while strengthening domestic construction industries.

“Effective land management remains the foundation of housing delivery in Nigeria. Without fixing land administration, it will be difficult to close the country’s housing deficit.

“Urban renewal and regeneration have been adopted as national policy tools for rebuilding Nigerian cities, addressing uncontrolled urban growth and improving the quality of life of our citizens.

“The promotion of locally sourced building materials and technologies is now a policy priority to reduce construction costs, deepen local industry and improve housing affordability.”

“Federal and state governments are being aligned under a unified housing and urban development agenda to ensure coordinated implementation and results driven execution”, he said.

Mr Dangiwa added that public private partnerships will serve as the main engine for mass housing and urban infrastructure delivery across the federation.

The government, he noted, will provide policy support, land governance reforms and investment frameworks to attract private capital into the sector.

To support the new direction, he said the FG is strengthening national land governance frameworks to promote inclusive urban growth and remove long standing bottlenecks in land administration that have slowed housing development.

The minister said the new policy thrust further includes innovative housing finance and investment strategies designed to unlock long term funding for real estate development and bridge Nigeria’s widening housing gap.

He stressed that federal and state governments are being aligned under a unified housing and urban development agenda to ensure coordinated implementation and results driven execution.

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DSS Arrests ex-AGF Malami After Release from Kuje Prison in EFCC Case

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By Adedapo Adesanya

The Department of State Service (DSS) has arrested former Attorney-General of the Federation (AGF) and Minister of Justice, Mr Abubakar Malami, shortly after his release from Kuje prison in Abuja on Monday.

He was reportedly arrested to face a fresh probe over arms allegedly discovered in his house in Birnin-Kebbi, the Kebbi State capital, last December.

Recall that two weeks ago, Justice Emeka Nwite of the Federal High Court in Abuja granted the former AGF and two others bail in the sum of N500 million.

The Economic and Financial Crimes Commission (EFCC) had filed a 16-count alleged money laundering charge against Mr Malami, his son, Abdulaziz Malami, and his wife, Mrs Asabe Bashir.

The DSS operatives reportedly arrested him as he was exiting the Kuje Correctional Centre in Abuja, where he had been held since December 30, 2025, over the pending N8.7 billion money laundering charges filed by the anti-graft agency.

Monday’s arrest followed weeks of reports of surveillance by the secret police in front of the prison facility since the time Mr Malami, his wife and son were remanded there over the money laundering charges.

As per reports, Mr Malami had gathered that he would be picked up upon regaining his temporary freedom decided to wait. However, after his eventual emergence, the DSS operatives took the ex-AGF into detention again.

In a press statement by Mr Malami’s aide, Mr Mohammed Doka, shared on the former AGF’s Facebook page on January 7, the planned arrest of the legal practitioner was confirmed.

The post, the latest on the Facebook page as of Tuesday morning, said the former minister’s camp had been “reliably informed of plans by government security agencies to rearrest him immediately upon his release, despite being granted bail by a court of competent jurisdiction.”

“This development is deeply troubling and raises grave concerns about due process, the rule of law, and personal safety,” the statement added, describing the allegations informing the planned arrest as “trumped-up charges”.

Mr Malami’s arrest on Monday began the third phase of his ongoing detention by various agencies since December 8, 2025.

The EFCC detained him from 8 December 2025 to 30 December 2025, when the Federal High Court in Abuja where he and his family members face money laundering charges transferred him to the Correctional Centre in Kuje, Abuja, following his arraignment.

The trial court granted him bail on 7 January but only for him to be rearrested by the SSS upon his release after meeting the bail conditions on Monday.

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