The Federal Government has issued a directive barring all Ministries, Departments, and Agencies (MDA) from adding new projects to their budget submissions for 2025.
The federal government said such projects can only be included if they can be linked to the completion of ongoing initiatives.
The federal government, in the 2024 Federal Government Budget Call Circular said that no new projects would be admitted into the 2025 capital budget unless MDAs can demonstrate that sufficient resources have been allocated for the completion of ongoing projects.
“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,” the document read.
It further stated that 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.
The MDAs were also 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.
The priorities, according to 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.
It further emphasised that all projects must be aligned with the objectives of the National Development Plan 2021–2025, which 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.
This figure includes N2.73tn for Government-Owned Enterprises, N711.11bn for donor-funded projects, and N4.26tn in statutory transfers.
MDAs were 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 N150 million, MDAs must provide GPS coordinates to aid geotagging, enabling the use of technology for monitoring and evaluation.
