The Nigerian Federal Government has introduced a new measure to enhance transparency and accountability in the execution of capital projects. Beginning with the 2025 fiscal year, all Ministries, Departments, and Agencies (MDAs) are mandated to provide the Global Positioning System (GPS) coordinates for all capital projects valued at N150 million and above within their budget submissions. This directive, outlined in the official implementation guidelines for the 2025 Appropriation Act, aims to enable precise tracking of project locations, thereby facilitating effective monitoring and evaluation of project progress. This initiative signals a significant shift towards a more technologically driven and geographically aware approach to public finance management.
The GPS requirement forms a crucial part of the government’s broader strategy to improve fiscal discipline and curb irregularities in capital expenditure. By pinpointing the exact location of projects, the government aims to eliminate ghost projects, prevent duplication of efforts, and ensure that allocated funds are utilized for their intended purpose. This move is particularly important given the historical challenges of abandoned or untraceable projects, which have often led to wastage of public resources. The incorporation of GPS coordinates will empower independent verification and validation of project existence and progress, minimizing opportunities for misappropriation of funds.
The implementation of this new directive will be integrated into the established budget submission and cash planning processes. MDAs are required to submit their detailed monthly expenditure plans for the entirety of 2025 to both the Budget Office of the Federation and the Office of the Accountant-General of the Federation by July 31, 2025. These plans will serve as the foundation for cash releases throughout the year. Crucially, each MDA’s expenditure plan must explicitly state the GPS coordinates for every capital project exceeding N150 million in value. This mandatory inclusion of location data within budget submissions will be a crucial step in ensuring the accuracy and transparency of project information.
To further strengthen oversight and ensure alignment with national priorities, the Director-General of the Budget Office will review and approve each MDA’s expenditure plan. This approval process will validate the consistency of the proposed expenditures with the provisions of the 2025 Appropriation Act and the Federal Government’s overarching strategic objectives. This step underscores the government’s commitment to ensuring that all capital expenditures are strategically aligned and contribute to national development goals. The Budget Office will play a key role in ensuring that the new GPS requirement is effectively implemented across all MDAs.
Alongside the GPS requirement, the guidelines reinforce the importance of meticulous procurement planning. MDAs are instructed to initiate procurement processes promptly, adhering strictly to the approved budget provisions. This emphasis on early and compliant procurement planning aims to ensure efficient and timely project implementation. Furthermore, the government has emphasized the strict adherence to the December 2025 deadline for capital budget implementation, underscoring the need for timely project completion within the allocated fiscal year. No extensions will be granted beyond this date, reinforcing the government’s commitment to timely project delivery.
The Federal Government has also outlined the framework for cash disbursements to MDAs, which will be directly linked to the submitted expenditure plans and governed by a comprehensive cash plan for the 2025 fiscal year. This cash plan, prepared by the Office of the Accountant-General of the Federation in accordance with the Fiscal Responsibility Act of 2007, will be subject to the approval of the Minister of Finance and Coordinating Minister of the Economy. The alignment of cash releases with detailed expenditure plans and a robust cash plan reinforces the government’s commitment to prudent fiscal management and responsible allocation of public resources. This approach emphasizes transparency and accountability in the utilization of public funds.
