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FG defers 70% of 2025 capital projects to 2026

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The Federal Government has ordered ministries, departments, and agencies to carry over 70 per cent of their 2025 capital budget into the 2026 fiscal year as the administration moves to prioritise the completion of existing projects and contain spending pressures in the face of weak revenues.

This directive is contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning and circulated to all ministers, service chiefs, heads of agencies and top government officials in Abuja.

The circular, which was seen by The PUNCH on Monday, stated that the annual budget estimates must follow strict guidelines and that all officers responsible for budget preparation were expected to comply fully. The circular made clear that the preparations for the 2026 budget would not allow the introduction of new capital projects.

It stated that ministries and agencies must continue with the allocations already approved in the 2025 budget rather than seeking fresh projects. The document said MDAs are required to upload 70 per cent of their 2025 budget to continue next year, and that this must be done in line with national priorities.

It explained that the rollover is based on what it described as the immediate needs of the country and the development priorities of the administration. It listed the priorities that align with the policy direction of the government, such as national security, the economy, education, health, agriculture, infrastructure, power and energy, as well as social safety nets, including women and youth empowerment.

According to the circular, “MDAs are to upload 70 per cent of their 2025 FGN Budget to continue in FY2026. All such rollover and uploads MUST be in line with the immediate needs of the country as well as government’s development priorities that aligns with the policy direction of the new administration which hinges on National Security, the Economy, Education, Health, Agriculture, Infrastructure, Power & Energy as well as social safety nets, women & youth empowerment.”

The circular stated that the government had established a framework that sets capital budget ceilings for 2026 at 70 per cent of the 2025 project allocations. It also explained that only 30 per cent of the 2025 capital budget would be released within the current fiscal year, while the remaining 70 per cent would serve as the foundation for the 2026 capital budget, replacing the previous method of a traditional rollover.

It said this would ensure continuity for ongoing projects and eliminate wasteful duplication. The document emphasised that ministries must not attempt to exceed their overhead ceilings from 2025 when preparing their 2026 submissions.

It acknowledged that inflation is affecting costs but said the government is constrained by revenue challenges. It added that the government would sustain the effort to achieve full release of the overhead budget but warned that proposals that go beyond approved ceilings would be adjusted downward.

According to the circular, “MDAs are required to work within and not exceed their 2025 overhead ceilings (Executive Proposal) for the purpose of preparing their 2026 Overhead budget submissions. While we note the impact of inflation on overhead costs, we are, however, constrained by revenue challenges in providing significantly more for overheads. We will, however, sustain the effort to achieve full release of the overhead budget.”

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The circular explained that budget estimates must take into consideration the policies and strategies contained in the 2026 to 2028 Medium Term Expenditure Framework and Fiscal Strategy Paper, which it described as the Federal Government’s pre-budget statement.

It said the MTEF outlines development priorities and that the annual budget must be prepared in line with the policy thrust of the administration. It referred to the direction under the Renewed Hope Agenda, including the Renewed Hope Infrastructure Development Plan and Ward Development Plan, the National Development Plan, and other programmes, including the Accelerated Stabilisation and Actualisation Plan.

The circular said all expenditure would be properly scrutinised to allow only essential spending and to ensure value for money. It stated that the government remains committed to improving the efficiency and quality of spending and to strengthening budget formulation, implementation, monitoring, and evaluation.

MDAs were informed that they must submit their budgets online using the GIFMIS Budget Preparation Subsystem, while government-owned enterprises must submit theirs through the Budget Information Management and Monitoring System. Both submissions must be completed not later than Tuesday, December 9, 2025.

The circular warned that it is not the responsibility of budget officers to upload any submission on behalf of any ministry, department, or agency. On personnel costs, the circular stated that the Budget Office had already prepared estimates based on information obtained from the Integrated Personnel and Payroll Information System or submitted earlier by ministries.

It said each ministry would be advised of its personnel cost budget for the 2026 fiscal year. The financial framework accompanying the circular showed a tighter revenue position alongside rising debt service obligations. The amount available for the Federal Government budget, including government-owned enterprises, in 2026 is N54.46tn compared to N54.99tn in 2025.

Statutory transfers are projected at N3.15tn in 2026 compared with N3.64tn for 2025, while recurrent non-debt expenditure is projected at N15.26tn. Debt service increases from N13.94tn in 2025 to N15.52tn in 2026, according to the document. Aggregate capital expenditure is projected at N22.37tn in 2026, down from N26.19tn in the current year.

This is made up of capital supplementation, capital in statutory transfers, special intervention programmes, MDA’s capital expenditure, GOEs capital expenditure, grants, and donor-funded projects and project-tied loans. The amount available for MDA’s capital expenditure falls from N12.39tn in 2025 to N8.67tn in 2026, while the volume of project-tied loans declines sharply from N3.36tn to N2.05tn.

The deficit increases from N14.10tn in the current year to N20.12tn in 2026. Economist and professor at the Olabisi Onabanjo University, Sheriffdeen Tella, earlier faulted the basis of preparing the 2026 budget when implementation of the 2025 budget had barely begun.

Tella questioned how the government arrived at a deficit of N20tn when, according to him, the 2025 budget started late and had not generated any performance indicators to justify new projections.

He said he found the 2026 deficit troubling because “the budget of 2026 is supposed to be premised on the implementation or performance of 2025,” yet “they have just started implementing the 2025 budget… in December 2025.”

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Tella added that “there is no basis for any budget because what they had, they have not implemented” and supported that the government should have rolled over the 2025 plan into 2026 instead of preparing a fresh document. The professor expressed concern that Nigeria risked operating multiple budgets in the same year, calling it a sign of fiscal disorder.

The National President of the Nigerian Economic Society, Professor Adeola Adenikinju, also criticised the government for drifting away from the January to December budget cycle. He said the timing of the MTEF FSP approval showed that Nigeria was again running behind schedule, which undermines predictability and complicates economic planning.

Adenikinju said, “The 2026 budget should have been in the National Assembly for consultation so that we can keep to this January 1st thing. That makes our fiscal system predictable.” He argued that the late budget presentation prevents the National Assembly from carrying out proper scrutiny.

The economist said the rush to approve budgets “does not allow for proper analysis” and prevents ministries and departments from fully defending their plans. He warned that the practice was creating a disorganised fiscal environment. According to him, “we are running two or three budgets in the same year,” and the pattern “makes the whole process very disorganised.”

Nevertheless, the Federal Government has said the 2026 budget will focus on ward-based development, infrastructure, security, and stronger domestic production as Nigeria adjusts to declining global aid.

Speaking in Abuja on Monday, at a stakeholders’ engagement with the Nigeria International Non-Governmental Organisation Forum, Minister of Budget and Economic Planning, Senator Abubakar Bagudu, said the next budget cycle will support the country’s $1tn economy target.

He explained that the Medium-Term Expenditure Framework approved by the Federal Executive Council sets out the assumptions for the 2026 fiscal year, including revenue projections, production targets, and the new strategy to drive growth at the community level.

Economists speak

Economists on Monday gave contrasting views on the government’s decision to carry over 70 per cent of the 2025 capital budget into 2026, speaking with The PUNCH in separate telephone conversations.

A development economist and Chief Executive of CSA Advisory, Dr Aliyu Ilias, took a critical stance, saying the decision reflected poor fiscal discipline.

He argued that the approach had already denied citizens the benefits of projects that should have been completed. He said the Federal Government “has failed” and that “they have fiscal discipline problems.” He questioned how the government could be “ruling over a budget about 70 per cent” and warned that it meant “Nigeria’s business has suffered.”

According to him, capital projects that should have delivered services were already stalled. He said, “All the capital projects that were supposed to have been done for us to benefit from have failed already.”

He added that the carryover broke the continuity that previous administrations tried to protect. In his words, “They have also eroded President Muhammadu Buhari’s continuous effort to maintain the January to December budget.”

He described the situation as a gap that could encourage abuse. “This is a room for corruption,” he said, querying how oversight would be maintained when the government was rolling over spending.

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He said, “How do we know that this is what they are rolling over, this is what they are not rolling over?”

He argued that Nigerians rely heavily on capital projects and any delay would lead to hardship.

He described the situation as “an announced suffering” and said capital projects had “been suffered now because you don’t have a clear oversight on them, and it’s a problem.”

He insisted that government performance on fiscal and budget discipline “for now has not done well” and suggested that the lapses were deliberate. “I am sure I want to say that it is intentional because you could have seen that this is becoming an error,” he said.

Ilias said the problem also rested with the National Assembly, which he accused of failing in its oversight duty.

He said the legislature was tolerating inefficiencies, adding that “The National Assembly is also failing, failing in the sense that it is their own responsibility to make sure that those things do not really fly.”

He said lawmakers “seem to have a pity-pity with the National Assembly, they are tolerating those inefficiencies.”

He concluded that his doubts about the government’s fiscal discipline remained strong. “For me, I have doubts in the fiscal discipline and budget discipline for this government,” he said, adding that any solution might only come much later. He said, “Perhaps, maybe in 2027, they may correct it.”

In contrast, the Director of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, supported the rollover decision.

He said it was a necessary step to restore credibility to the budget process. He described it as a way to “normalise things because there will be no end to continuous rolling wells of budgets” if the situation were allowed to continue indefinitely.

Yusuf explained that it was unrealistic to keep approving fresh capital allocations when previous ones were still unimplemented.

He said, “It is not realistic to have another set of capital to just enjoy the budget, given all the backlog that you have in 2025, even 2024.” He added that the rollover would help clean up what he called “an anomaly.”

He argued that the proposal would improve confidence in the system. He said, “I think what is being proposed is a way of cleaning it up so that you can normalise the situation in a way that it brings some credibility to the budget process.”

Yusuf linked the issue to wider weaknesses in budget planning and revenue assumptions, saying that unrealistic projections were part of the problem.

He explained that the decision was tied to ensuring that expenditure and revenue plans align better.

He said, “When you have assumptions that are not realistic, you have expenditure plans that are not realistic.” He insisted that the new approach was an attempt to make the system more grounded.

He said that achieving balance between spending and income was crucial. “We have to be realistic with our expenditure and with our revenue as well,” he said.

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Bank recapitalisation: Local investors provide 72% of N4.6tn

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The Central Bank of Nigeria (CBN) on Wednesday said domestic investors accounted for the bulk of funds raised under its banking sector recapitalisation programme, contributing 72.55 per cent of the N4.65tn total capital secured by lenders.

The apex bank disclosed this in a statement marking the conclusion of the exercise, which began in March 2024 and saw 33 banks meet the new minimum capital requirements.

The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.

According to the CBN, Nigerian investors provided about N3.37tn of the total capital raised, underscoring strong domestic confidence in the banking sector, while foreign investors accounted for the remaining 27.45 per cent.

“Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy,” the statement said.

Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”

The bank confirmed that 33 lenders had met the revised capital thresholds, while a few others were still undergoing regulatory and judicial processes.

“The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme,” it stated.

“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.

“All banks remain fully operational, ensuring continued access to banking services for customers.”

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The regulator stressed that the recapitalisation exercise was completed without disrupting banking operations nationwide, noting that key prudential indicators, particularly capital adequacy ratios, had improved and remained above global Basel benchmarks.

Minimum capital adequacy ratios were pegged at 10 per cent for regional and national banks and 15 per cent for banks with international licences.

The CBN added that the exercise coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall system stability.

To sustain the gains, the apex bank said it had strengthened its risk-based supervision framework, including periodic stress tests and requirements for adequate capital buffers.

It added that supervisory and prudential guidelines would be reviewed regularly to improve governance, risk management, and resilience across the sector.

“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement added.

Meanwhile, data from the National Bureau of Statistics showed that foreign capital inflows into the banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025 from $7.00bn in 2024, reflecting strong investor interest during the recapitalisation drive.

However, the Centre for the Promotion of Private Enterprise has cautioned that despite the strengthened banking system, credit to small businesses remains weak, warning that the benefits of the reforms are yet to fully impact the real economy.

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Court freezes N448m assets in Keystone Bank debt recovery suit

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The Federal High Court in Lagos has ordered the freezing of funds and assets valued at N448,263,172.41 in a debt recovery suit instituted by Keystone Bank Limited against five defendants.

The order was made on March 26, 2026, by Justice Chukwujekwu Aneke following an ex parte application moved by Keystone Bank’s counsel Mofesomo Tayo-Oyetibo (SAN), against Relic Resources, Olufunmilayo Emmanuella Alabi, Uwadiale Donald Agenmonmen, The Magnificent Multi Services Limited, and Raedial Farms Limited.

In his ruling, Justice Aneke granted a Mareva injunction restraining the defendants, whether by themselves, their agents, privies, or assigns, from withdrawing, transferring, dissipating, or otherwise dealing with funds, shares, dividends, and other financial instruments standing to their credit in any bank or financial institution in Nigeria, up to the sum in dispute.

The court further directed all banks and financial institutions within the jurisdiction to forthwith preserve any funds belonging to the defendants upon being served with the order.

The said institutions were also ordered to depose to affidavits within seven days of service, disclosing the balances in all accounts maintained by the defendants, together with the relevant statements of account.

In addition, the court granted a preservative order restraining the defendants from disposing of, alienating, or otherwise encumbering any movable or immovable property, including any future or contingent interests, up to the value of the alleged indebtedness.

The court also granted leave for substituted service of the originating and other court processes on the second and third defendants by courier delivery to their last known addresses.

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The matter was adjourned to April 9, 2026, for mention.

According to the originating processes before the court, the suit arises from a N500 million overdraft facility granted by the claimant to the first defendant on March 28, 2023, for a tenure of 365 days at an interest rate of 32 per cent per annum.

The claimant averred that the facility, initially secured by a $200,000 cash collateral and subsequently by a mortgaged property located at Itunu City, Epe, Lagos, expired on March 27, 2024, leaving an outstanding indebtedness of N448,263,172.41 as at October 31, 2024.

In the affidavit in support of the application, the claimant alleged that the facility was diverted for personal use by the third defendant and channelled through the fourth and fifth defendant companies.

It further contended that the first defendant is no longer a going concern and has failed, refused, and neglected to liquidate the outstanding indebtedness despite several demands made between May and October 2025.

The claimant also expressed apprehension that the defendants may dissipate or conceal their assets, thereby rendering nugatory any judgment that may be obtained in the suit, and consequently urged the court to grant the reliefs sought in the interest of justice.

After considering the application and submissions of learned silk, Justice Aneke granted all the reliefs sought and adjourned the matter to April 9, 2026, for further proceedings.

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Sanwo-Olu unveils Lagos 2026 economic blueprint, vows inclusive growth

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The Lagos State Governor, Babajide Sanwo-Olu, on Tuesday unveiled the 2026 edition of the Lagos Economic Development Update, reaffirming his administration’s commitment to driving inclusive growth and ensuring that economic progress translates into tangible benefits for all residents of the state.

The unveiling of this year’s outlook, held in Ikeja, provides an in-depth analysis of the state’s economic trajectory, capturing global, national, and local developments shaping Lagos’ growth outlook.

Represented by his deputy, Obafemi Hamzat, the governor described the report as more than a policy document, noting that it serves as a strategic compass for guiding economic direction and strengthening decision-making.

He added that despite global economic headwinds — including post-pandemic recovery challenges, inflationary pressures, and exchange rate fluctuations — the state has remained resilient through deliberate policies, fiscal discipline, and sustained investment in critical infrastructure.

“It is with a deep sense of responsibility and optimism that I join you today to officially launch the third edition of the Lagos Economic Development Update — LEDU 2026.

“This platform has evolved beyond a mere policy document; it has become a compass guiding our economic direction, shaping decisions, and reinforcing our commitment to building a resilient, inclusive, and prosperous Lagos,” he said.

He noted that while the global economic environment has remained unpredictable, Lagos has stayed on course through “clarity, discipline, and foresight,” anchored on the T.H.E.M.E.S+ Agenda.

According to him, the state had strengthened its fiscal framework, improved revenue generation, and invested in infrastructure critical to long-term growth.

Sanwo-Olu further highlighted progress recorded since the inception of LEDU, including the expansion of the state’s economic base driven by innovation, entrepreneurship, and digitalisation; improved efficiency in revenue systems; and sustained infrastructure development spanning roads, ports, energy, and urban planning.

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He added that continued investment in human capital remains central, as “people are the true engine of growth.”

Speaking on the theme of this year’s report, “Consolidating Resilience, Advancing Competitiveness, Delivering Shared Prosperity,” the governor said it reflects Lagos’ current economic priorities.

He explained that consolidating resilience involves strengthening institutions and fiscal discipline, while advancing competitiveness requires boosting productivity, innovation, and investment.

Delivering shared prosperity, he added, means ensuring growth translates into jobs, expanded opportunities, and improved livelihoods for residents.

Looking ahead, he reaffirmed the administration’s commitment to economic diversification, private sector-led growth, data-driven governance, sustainable urban development, and social inclusion.

He also stressed the importance of partnerships with the private sector, development institutions, civil society, and the international community in achieving the state’s development goals.

“As we launch this edition of LEDU, I urge all stakeholders to engage actively, strengthen collaboration, and align with our shared vision.

“We have built resilience; now we must translate it into sustained competitiveness and ensure that growth delivers tangible prosperity for every Lagosian,” he said.

Also speaking, the state Commissioner for Economic Planning and Budget, Ope George, said Lagos has demonstrated remarkable resilience in navigating both global and domestic economic challenges.

“Lagos is not just responding to economic shocks — we are building systems that make us stronger because of them,” he said, noting that deliberate policies, disciplined fiscal management, and strategic investments have reinforced the state’s position as a leading subnational economy in Africa.

He added that the state would continue to prioritise economic diversification, private sector growth, sustainable urban development, and social inclusion, stressing that growth must be measured not only by numbers but also by its impact on people’s lives.

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In his goodwill message, Chief Consultant at B. Adedipe Associates Limited, Biodun Adedipe, described the LEDU initiative as a credible framework for tracking economic performance and refining development strategies.

He noted that Lagos remains central to Nigeria’s economy, adding that its continued growth signals broader national progress.

“If Lagos works, a significant share of Nigeria’s commerce works,” he said, expressing optimism about the state’s economic future.

Meanwhile, the Chief Executive Officer of the Nigerian Economic Summit Group, Tayo Adeloju, urged the state government to prioritise affordable housing as a critical driver of shared prosperity.

He noted that high housing costs could limit upward mobility for low-income earners, stressing that making housing more accessible would enhance living standards and support inclusive growth.

Adeloju added that sustained fiscal discipline, improved service delivery, and a broader productive base would further strengthen Lagos’ position among Africa’s leading megacity economies.

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