The Federal Government has instructed all Ministries, Departments, and Agencies to exclude new projects from their 2025 budget submissions unless linked to ongoing project completion.
This directive is outlined in the 2024 Federal Government Budget Call Circular.
The 2024 Budget Call Circular explicitly states that no new projects will be included in the 2025 capital budget unless MDAs can prove that adequate resources have been allocated to complete ongoing projects.
The document read, “Again, the thrust of the FGN’s capital expenditure programme in 2025 will be the completion of as many cardinal ongoing projects as possible, rather than starting new projects. Thus, MDAs are hereby advised that new projects will not be admitted into the capital budget for 2025 unless adequate provision has been made for the completion/work programme of all ongoing projects.”
MDAs are instructed to review their existing project portfolios and submit updated lists of both ongoing and new capital projects using the Budget Office’s Capital Project Status Template.
They are also required to critically assess and justify their proposed projects and programmes, ensuring alignment with the country’s immediate needs and key government priorities.
These priorities, outlined in the circular, include national security, economy, education, health, agriculture, infrastructure, power and energy, and social safety nets, with a focus on women and youth empowerment.
Additionally, all projects must align with the objectives of the National Development Plan 2021–2025, which focuses on building a strong, diversified economy, investing in critical infrastructure, enhancing security and governance, and fostering a vibrant, healthy, and educated population.
The Federal Government’s projected expenditure for 2025 is N47.90 trillion, marking a 36.6% increase from the 2024 budget.
The 2025 budget includes N2.73 trillion for Government-Owned Enterprises, N711.11 billion for donor-funded projects, and N4.26 trillion in statutory transfers. Provisions have also been made for the newly established South-East, South-West, and North-West Development Commissions.
Debt servicing is a major component of the budget, with N15.81 trillion allocated, including N430.27 billion for maturing bonds.
The document noted, “In allocating capital budget resources, MDAs are enjoined to accord priority to ongoing projects, especially those nearing completion that fit into government’s current priorities. As a general rule, MDAs will not be allowed to initiate new projects/programmes unless they can demonstrate that adequate provisions have been made for ongoing projects.
“In addition to alignment with the objectives of the NDP, the likelihood of completion within the medium-term, i.e., not later than 2025, should be considered in prioritising capital projects.”
