In a significant directive aimed at streamlining the budgeting process, the Federal Government of Nigeria has mandated all Ministries, Departments, and Agencies (MDAs) to refrain from including new projects in their 2025 budget submissions unless these can be explicitly linked to ongoing initiatives that are in need of completion. This decision is detailed in the recently released 2024 Federal Government Budget Call Circular, which emphasizes the government’s commitment to prioritizing the fulfillment of existing projects over the initiation of new ones. The circular asserts that the upcoming capital budget for 2025 will prioritize the furtherance of current projects, reflecting a shift in focus designed to enhance efficiency and ensure the effective use of public resources.
According to the circular’s guidelines, MDAs are instructed to conduct thorough appraisals of their existing project portfolios. They are required to submit updated lists detailing both ongoing and prospective capital projects utilizing the Capital Project Status Template provided by the Budget Office. This proactive measure aims not only to streamline the project management process but also to standardize the reporting format across various government agencies. MDAs must ensure that any proposed projects align closely with the immediate needs of the nation and adhere to the government’s overarching development priorities, which include critical sectors such as national security, education, health, agriculture, and infrastructure.
The Federal Government has outlined that all projects submitted for consideration must also be in sync with the objectives laid out in the National Development Plan (NDP) 2021–2025. This plan emphasizes goals such as fostering a diversified economy, ensuring investment in essential infrastructure, and strengthening the security sector. Furthermore, the plan underscores the importance of cultivating a healthy, educated population—an alignment with the government’s focus on social safety nets, particularly geared towards women and youth empowerment. This holistic approach signifies the government’s intention to make developmental initiatives more responsive to the changing dynamics of the country.
Projected federal expenditures for 2025 stand at a staggering ₦47.90 trillion, representing a significant 36.6 percent increase compared to the 2024 budget. Among the critical allocations included in the proposed budget are ₦2.73 trillion earmarked for Government-Owned Enterprises, ₦711.11 billion for donor-funded projects, and ₦4.26 trillion allocated for statutory transfers. Debt servicing remains a major expenditure item, consuming a substantial portion of the federal budget with ₦15.81 trillion set aside for this purpose, which includes ₦430.27 billion specifically for maturing bonds. This burgeoning expense reflects the pressing challenge of managing national debt while planning future investments.
Personnel and pension costs are predicted to total ₦9.64 trillion in 2025, which marks a 58.7 percent increase from the previous year, primarily driven by the implementation of the new minimum wage policy. Notably, the budget allocates ₦16.48 trillion for capital projects, marking an 11.2 percent increase compared to the 2024 capital expenditure budget. This allocation is designed to strategically focus on the completion of existing projects, underscoring the government’s commitment to enhancing project delivery and the efficient use of limited resources.
In line with the directive, MDAs are encouraged to prioritize the completion of projects that are nearing their finish line, particularly those that align with the government’s stated priorities. The circular affirms that ongoing projects should receive prime attention when allocating capital budget resources, thereby ensuring that projects are not only initiated but completed effectively within their timelines. Additionally, MDAs proposing projects with valuations exceeding ₦150 million must provide geolocation data to facilitate advanced monitoring and evaluation efforts through the application of technology. This directive represents a pivotal step towards improving transparency and accountability in public project management.
