By Juliet Ezeh
The Federal Government has moved to reinforce fiscal discipline across Ministries, Departments and Agencies with a firm directive mandating strict compliance with procurement laws in the execution of the 2025/2026 Capital Budget.
At the heart of the renewed push is a warning that no capital project will be tolerated outside established legal frameworks. The directive, issued during a high-level stakeholders’ meeting at the Federal Ministry of Finance, signals a broader effort to strengthen transparency, prevent budget overruns, and restore confidence in public financial management.
The Minister of State for Finance, Doris Uzoka-Anite, made it clear that adherence to the Public Procurement Act is non-negotiable. She stressed that no project should commence without confirmed funding and that all payments must strictly follow approved procurement procedures. According to her, any attempt to bypass due process will not be accepted.
The emphasis on compliance reflects growing concerns about inefficiencies and leakages that have historically slowed capital project delivery. By insisting on documentation review and proper procedural alignment before payments are processed, the government aims to eliminate bottlenecks that often delay contractor settlements.
Uzoka-Anite assured agencies that funding is not the constraint. She stated that sufficient resources are available to clear outstanding obligations, urging MDAs to update and regularise their documentation to enable faster disbursement.
The renewed fiscal control also coincides with structural adjustments to the capital budget timeline. The Accountant-General of the Federation, Shamseldeen Babatunde Ogunjimi, disclosed that 30 per cent of the 2025 Capital Budget will be implemented between now and November 31, 2026. The remaining 70 per cent has been rolled into the 2026 Capital Budget to ensure smoother execution and prevent administrative overlap.
This phased implementation, he explained, follows a directive from President Bola Tinubu aimed at improving project continuity and preventing abrupt funding disruptions. Warrants have already been issued to relevant agencies, and Treasury House is expected to begin executing the 30 per cent allocation imminently.
Crucially, the Government Integrated Financial Management Information System platform has been fully restored and is operational. The restoration of GIFMIS is seen as a key milestone in the government’s financial reform agenda, as the platform plays a central role in monitoring expenditures, processing payments, and enhancing accountability across MDAs.
Financial analysts say the integration of procurement compliance with digital financial monitoring could significantly reduce irregular spending. By aligning project execution with real-time budget tracking, the government is positioning itself to better enforce spending ceilings and identify discrepancies early.
The Director of Funds, Steve Ehikhamenor, reinforced this message by cautioning agencies against exceeding approved budget limits or diverting funds to unlisted projects. He instructed MDAs to operate strictly within the amounts specified in their warrants and to return any unused funds to the treasury. Agencies were also advised to work closely with GIFMIS officials to resolve technical issues and ensure complete legal documentation before processing payments.
The tightening of controls comes amid public demand for improved value for money in capital projects, particularly in infrastructure, healthcare, and education. Delays, abandoned projects, and cost escalations have long undermined the impact of government spending.
By focusing on procurement discipline, structured disbursement, and digital oversight, the Federal Government appears to be recalibrating its approach to capital expenditure. The strategy combines legal enforcement with administrative coordination to enhance execution efficiency.
If effectively implemented, the measures could improve project delivery timelines, reduce waste, and strengthen public trust in budget management. For MDAs, however, the message is clear: compliance is mandatory, documentation must be complete, and financial indiscipline will not be tolerated.
As the 2025/2026 capital cycle unfolds, the success of this approach will depend on consistent enforcement and transparent reporting, ensuring that allocated funds translate into tangible development outcomes for Nigerians.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.