The Federal Government has released the 2026 Budget Call Circular, setting strict guidelines for Ministries, Departments, and Agencies (MDAs) as they prepare next year’s spending proposals.
A major component of the circular is the decision to fix sectoral capital budget ceilings for 2026 at 70 percent of the capital allocations approved for each MDA in the 2025 fiscal year.
According to the circular signed by the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, the new framework means the government has already determined how much every MDA can spend on capital projects in 2026. Each department’s budget ceiling for 2026 will be 70 percent of what they were given to spend on projects in 2025.
The minister stated that the approach is tied to the administration’s plan to release 30 percent of the 2025 capital budget within the current fiscal year. The remaining 70 percent will be retained as the foundation for the 2026 capital budget rather than rolled over through the usual extension process.
Under the new rules, MDAs must restrict their 2026 submissions to only projects and the Economic Recovery and Growth Plan (ERGP) codes contained in the approved 2025 budget.
“Submissions that exceed the 70 percent ceiling or include unapproved new projects will be considered non-compliant,” the document warned, adding that the Budget Office of the Federation (BOF) will adjust any such proposals to align with the approved limits.
On overheads, the circular directed MDAs to work strictly within their 2025 overhead ceilings as contained in the Executive Proposal. While acknowledging the impact of inflation on operational costs, the government noted ongoing revenue pressures. Nonetheless, Bagudu assured that efforts will continue “to achieve full release of the overhead budget.”
The circular further instructed MDAs to upload 70 percent of their 2025 capital budget for continuation in 2026. These rollovers must reflect the country’s most urgent needs and align with the administration’s priorities in national security, the economy, education, health, agriculture, infrastructure, power and energy, social safety nets, and women and youth empowerment.
“All Ministers/Chief Executives/Accounting Officers and other officers responsible for budget preparation are advised to read this Budget Call Circular carefully,” the circular stated. Bagudu added, “All are also enjoined to strictly adhere to these guidelines and instructions, including, but not limited to, the revenue and cost optimisation measures indicated herein.”
The minister stressed that the 2026 budget must reflect the policies and strategies set out in the 2026–2028 Medium Term Expenditure Framework and Fiscal Strategy Paper, which serves as the Federal Government’s pre-budget statement.
He noted that global and domestic economic indicators point toward gradually improving activity, which informs the medium-term revenue and expenditure outlook.
Bagudu said the government remains committed to improving the efficiency and quality of public spending. He explained that federal expenditure will continue to undergo rigorous scrutiny to ensure only essential activities are funded and that value for money is achieved. He also noted ongoing reforms to strengthen budget formulation, implementation, monitoring, and evaluation.
As part of the preparation process, the 2026 budget will be compiled using the Budget Preparation Subsystem (BPS) on the GIFMIS platform. All MDAs are required to prepare and submit their budget proposals through the online system. He disclosed that relevant personnel will be retrained to ensure they can use the platform effectively.
The BOF has already prepared personnel cost estimates for each MDA using data from the Integrated Personnel and Payroll Information System (IPPIS) and earlier submissions. “Each MDA will be advised accordingly of its personnel cost budget for FY 2026,” the ministry said.
To support MDAs during the process, the BOF confirmed that assigned schedule and sector officers will be available to offer technical assistance. The Budget Help-Desk will also provide online support via 08000-CALLBOF (08000 2255 263) or through the BOF website.
MDAs with access to the Galaxy Backbone IP-phone system may also call 595186, 595193, or 595194. However, the circular made it clear that ultimate responsibility rests with agency heads. “The Chief Executive/Accounting Officer of each MDA takes responsibility for proper preparation and prompt submission of its budget,” it stated.
All Government Owned Enterprises (GOEs) must submit their budgets via the Budget Information Management and Monitoring System (BIMMS) by Tuesday, 9 December 2025. MDAs using the GIFMIS BPS platform are also to complete their submissions by the same deadline. The circular noted that it is not the duty of Budget Officers to upload budgets on behalf of any MDA or GOE.
The minister directed every Minister, Chief Executive, and Accounting Officer to immediately share the circular with all parastatals and agencies under their supervision to ensure full compliance with the guidelines ahead of the 2026 budget cycle.
