₦23.9tn Capital Projects May Spill Into 2026 Fiscal Year
The National Assembly on Thursday issued a decisive directive to the Federal Ministry of Finance, demanding the immediate withdrawal of all circulars related to contract awards under the 2025 fiscal year, citing delays in the release of capital funds.
This development casts uncertainty over the ₦23.9 trillion capital allocation embedded in the 2025 budget, with growing indications that implementation could extend into the 2026 fiscal cycle.
The resolution was passed at a joint session of the Appropriations Committees of both the Senate and the House of Representatives, held at the Senate wing of the National Assembly. Lawmakers met with key figures from the federal government’s economic team to assess the status of the budget implementation framework.
Senator Solomon Olamilekan Adeola (APC, Ogun West), Chairman of the Senate Committee on Appropriations, read the resolution, stressing the urgency of aligning project execution with timely financial authorization.
Adeola said, “The capital implementation for 2024 remains in effect until December 31, 2025.
“However, the execution of the 2025 capital component must begin without delay.
The Authority to Incur Expenditure (AIE) must be issued within seven days from today. Until that is done, all contract award circulars issued to Ministries, Departments and Agencies (MDAs) must be withdrawn.”
This action mirrors an earlier resolution passed by the House Appropriations Committee earlier in the week, signaling a unified legislative pushback against sluggish capital releases and overlapping budget cycles that hinder project delivery and fiscal discipline.
Key federal officials present included the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; Minister of Budget and Economic Planning, Senator Atiku Bagudu; Accountant-General of the Federation, Mr. Samsudeen Ogunjimi; and Director-General of the Budget Office, Mr. Tanimu Yakubu.
Following the open session, lawmakers held a closed-door meeting with the executive officials. No objections were raised by members of the economic team regarding the legislature’s directive.
The 2025 Appropriation Bill, totalling ₦54.99 trillion, allocates an unprecedented ₦23.9 trillion to capital expenditure, a figure now clouded by uncertainties due to transitional fiscal overlaps between the 2024 and 2025 budget cycles.
As of press time, deliberations between both arms of government were still ongoing behind closed doors.
