Financially Distressed Nation:FG Bars MDAs From Including New Projects In 2025 Budget

The Federal Government has directed all Ministries, Departments, and Agencies to exclude new projects from their budget submissions for 2025 unless these can be linked to the completion of ongoing initiatives. This is according to the 2024 Federal Government Budget Call Circular document obtained by the media. The 2024 Budget Call Circular clearly states that no new projects will be admitted into the 2025 capital budget unless MDAs can demonstrate that sufficient resources have been allocated for the completion of 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 required 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. Also, MDAs have been instructed to carefully scrutinise and justify their proposed projects and programmes,ensuring that these align with the country’s immediate needs and the government’s key development priorities. These priorities, as set out in the circular, include national security, economy, education, health, agriculture, infrastructure, power and energy, as well as social safety nets, with a focus on women and youth empowerment. In addition, all projects must be aligned with the objectives of the National Development Plan 2021–2025. This includes building a strong, diversified economy, investing in critical infrastructure, strengthening security and governance, and fostering a vibrant, healthy, and educated population. The Federal Government’s 2025 expenditure has been projected at N47.90tn, an increase of 36.6 per cent from the 2024 budget. The budget also includes provisions for the newly established South-East, South- West, and North-West Development Commissions. Debt servicing remains a significant portion of the expenditure, with N15.81tn set aside for this purpose, including N430.27bn for maturing bonds. Personnel and pension costs are estimated at N9.64tn, reflecting a 58.7 per cent increase from 2024, largely due to the implementation of the new minimum wage. A total of N16.48tn has been earmarked for capital expenditure in 2025, accounting for 34.4 per cent of the overall budget. This allocation marks an 11.2 per cent increase from the 2024 capital budget and is intended to focus primarily on completing ongoing projects rather than initiating new ones. MDAs have been urged to prioritise projects that are nearing completion, particularly those in line with the government’s current priorities. 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.” Also, for projects valued over N150m, MDAs must provide GPS coordinates to aid geotagging, enabling the use of technology for monitoring and evaluation. Distressed Nation:FG Bars MDAs From Including New Projects In 2025 Budget The Federal Government has directed all Ministries, Departments, and Agencies to exclude new projects from their budget submissions for 2025 unless these can be linked to the completion of ongoing initiatives. This is according to the 2024 Federal Government Budget Call Circular document obtained by the media. The 2024 Budget Call Circular clearly states that no new projects will be admitted into the 2025 capital budget unless MDAs can demonstrate that sufficient resources have been allocated for the completion of 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 required 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. Also, MDAs have been instructed to carefully scrutinise and justify their proposed projects and programmes,ensuring that these align with the country’s immediate needs and the government’s key development priorities. These priorities, as set out in the circular, include national security, economy, education, health, agriculture, infrastructure, power and energy, as well as social safety nets, with a focus on women and youth empowerment. In addition, all projects must be aligned with the objectives of the National Development Plan 2021–2025. This includes building a strong, diversified economy, investing in critical infrastructure, strengthening security and governance, and fostering a vibrant, healthy, and educated population. The Federal Government’s 2025 expenditure has been projected at N47.90tn, an increase of 36.6 per cent from the 2024 budget. The budget also includes provisions for the newly established South-East, South- West, and North-West Development Commissions. Debt servicing remains a significant portion of the expenditure, with N15.81tn set aside for this purpose, including N430.27bn for maturing bonds. Personnel and pension costs are estimated at N9.64tn, reflecting a 58.7 per cent increase from 2024, largely due to the implementation of the new minimum wage. A total of N16.48tn has been earmarked for capital expenditure in 2025, accounting for 34.4 per cent of the overall budget. This allocation marks an 11.2 per cent increase from the 2024 capital budget and is intended to focus primarily on completing ongoing projects rather than initiating new ones. MDAs have been urged to prioritise projects that are nearing completion, particularly those in line with the government’s current priorities. 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.” Also, for projects valued over N150m, MDAs must provide GPS coordinates to aid geotagging, enabling the use of technology for monitoring and evaluation.

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