Government Orders Freeze on New Projects in 2025 Budget
The Federal Government has mandated that no new projects be included in the 2025 budget submissions unless they directly contribute to completing ongoing initiatives. This directive was revealed in the 2024 Federal Government Budget Call Circular obtained by The Punch.
The circular outlined a decisive focus on finishing existing projects rather than initiating new ones. It stated, “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.”
Ministries, Departments, and Agencies (MDAs) have been instructed to audit their current project portfolios and submit updated lists through the Budget Office’s Capital Project Status Template. They are also required to justify proposed initiatives, ensuring alignment with the government’s development priorities, which include national security, the economy, education, health, agriculture, infrastructure, energy, and social safety nets targeting women and youth empowerment.
The directive reinforces the objectives of the National Development Plan 2021–2025, prioritising a diversified economy, infrastructure investment, security and governance, and fostering a healthy, educated population.
Projected at N47.90 trillion, the 2025 federal budget represents a 36.6% increase from 2024. It includes N2.73 trillion for Government-Owned Enterprises, N711.11 billion for donor-funded projects, and N4.26 trillion in statutory transfers. Debt servicing remains a dominant feature, with N15.81 trillion allocated, including N430.27 billion for maturing bonds.
Personnel and pension costs, estimated at N9.64 trillion, have risen by 58.7%, attributed to the new minimum wage implementation. Capital expenditure, set at N16.48 trillion, represents 34.4% of the total budget and is primarily directed at ongoing projects.
In a bid to enhance oversight, MDAs must provide geotagged GPS coordinates for all projects exceeding N150 million, allowing technological tools to monitor progress.
