By Musa Ibrahim
The federal government has issued a fresh warning to Ministries, Departments and Agencies (MDAs) to observe strict compliance with procurement laws in the execution of capital projects under the 2025 and 2026 budget cycle, as it moves to strengthen financial discipline and accelerate project delivery.
The directive was issued at a stakeholders’ meeting on the implementation of the extended 2025 Capital Budget, held at the Federal Ministry of Finance. The meeting brought together senior finance and accounting officers across MDAs to align execution timelines, payment processes and compliance standards.
According to a statement by the Office of the Accountant-General of the Federation, the Honourable Minister of State for Finance, Dr. Doris Uzoka-Anite, made it clear that no deviation from due process would be tolerated. She warned that capital payments processed outside the provisions of the Public Procurement Act would not be honoured.
Dr. Uzoka-Anite told agencies that no project should commence without confirmed funding and full procurement approval. She stressed that adherence to approved procedures was non-negotiable, noting that government had made adequate provisions to settle verified obligations. Agencies were therefore urged to update outstanding documentation promptly to enable faster processing of payments.
The meeting also provided clarity on the execution timeline for capital spending. Speaking at the session, the Accountant-General of the Federation, Shamseldeen Babatunde Ogunjimi, disclosed that 30 percent of the 2025 Capital Budget would be implemented between now and November 31, 2026. The remaining 70 percent, he said, has been rolled into the 2026 Capital Budget to ensure smoother execution.
Ogunjimi explained that the adjustment followed a directive from President Bola Tinubu and was designed to reduce bottlenecks that often stall capital projects late in the fiscal cycle. He stated that warrants had already been issued to MDAs and that Treasury House would begin implementing the 30 percent allocation by the end of the following week.
A key concern raised by agencies in recent months has been system delays. Addressing this, Ogunjimi assured participants that the Government Integrated Financial Management Information System (GIFMIS) platform had been fully restored and was now functioning properly. He said the restored system would support more efficient processing of capital payments and improve visibility across government finances.
Earlier in his welcome address, the Director of Funds, Steve Ehikhamenor, cautioned agencies against exceeding their approved budgets or altering project scopes without authorisation. He advised MDAs to stick strictly to listed projects and approved cost ceilings, warning that spending beyond issued warrants would attract sanctions.
Ehikhamenor also directed agencies to return any unused or excess funds to the treasury and encouraged closer collaboration with GIFMIS officials for technical support. He emphasised the need for complete legal and procurement documentation, describing it as critical to avoiding payment delays and audit queries.
Beyond administrative instructions, the directive reflects a broader policy shift. In recent years, weak procurement practices and fragmented budget execution have contributed to abandoned projects, cost overruns and poor value for money. By tightening controls and sequencing capital spending across two budget cycles, the government aims to improve predictability and outcomes.
Officials at the meeting said the approach would also strengthen transparency, reduce leakages and align spending more closely with national priorities. With capital resources under pressure, the emphasis is shifting from volume of allocations to quality of execution.
For MDAs, the message was unambiguous. Access to funds will depend on strict compliance, realistic project planning and adherence to approved processes. For the government, the success of the 2025 and 2026 capital budgets will be judged less by announcements and more by projects completed on time, within cost, and to specification.
