The Federal Government has issued a directive to all Ministries, Departments, and Agencies to refrain from including new projects in their 2025 budget proposals unless they are directly linked to the successful conclusion of ongoing initiatives. This instruction is outlined in the 2024 Federal Government Budget Call Circular document.
According to the circular, the focus for the 2025 capital budget will be on completing existing key projects rather than initiating new ones. MDAs are required to demonstrate that ample resources have been allocated for the completion of ongoing projects before considering any new project submissions.
MDAs are mandated to review their current project portfolios and submit updated lists of both ongoing and proposed capital projects using the specified Budget Office’s Capital Project Status Template. Additionally, they must carefully justify their proposed projects to ensure they align with the immediate needs of the country and the government’s development priorities.
These priorities, as outlined in the circular, encompass national security, the economy, education, health, agriculture, infrastructure, power and energy, and social safety nets, with a specific emphasis on women and youth empowerment. Projects must also align with the objectives of the National Development Plan 2021–2025, which aims to strengthen the economy, invest in critical infrastructure, enhance security and governance, and promote a healthy and educated population.
The projected 2025 Federal Government expenditure is estimated at N47.90tn, representing a 36.6% increase from the 2024 budget. This includes allocations for Government-Owned Enterprises, donor-funded projects, statutory transfers, and the newly established regional Development Commissions. Debt servicing, personnel, and pension costs have also been allocated significant portions of the budget.
Capital expenditure for 2025 is earmarked at N16.48tn, constituting 34.4% of the total budget. This allocation signifies an increase from the previous year and is intended to prioritize the completion of ongoing projects over the initiation of new ones. MDAs are encouraged to prioritize projects nearing completion and aligned with the government’s current priorities to ensure efficient resource allocation.
Furthermore, MDAs must provide GPS coordinates for projects valued over N150m to facilitate geotagging for monitoring and evaluation purposes.