FG Directs MDAs to Focus on Completion of Ongoing Projects in 2025 Budget
The Federal Government of Nigeria has mandated Ministries, Departments, and Agencies (MDAs) to exclude new projects from their 2025 budget proposals unless such projects are critical and linked to the completion of ongoing initiatives. This directive, outlined in the 2024 Federal Government Budget Call Circular obtained by The PUNCH, underscores the administration’s commitment to completing priority projects before embarking on new ones.
Key Highlights of the 2024 Budget Call Circular
- Focus on Ongoing Projects
The circular emphasizes that the 2025 capital budget will prioritize completing ongoing projects that align with the government’s development priorities. MDAs are instructed to allocate resources effectively to achieve this objective.“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,” the document stated.
- Scrutiny of Project Proposals
MDAs are required to review and update their project portfolios, submitting these using the Budget Office’s Capital Project Status Template. The proposed projects must address the nation’s immediate needs while aligning with the objectives of the National Development Plan (NDP) 2021–2025.These objectives include:
- Building a strong, diversified economy
- Investing in critical infrastructure
- Strengthening security and governance
- Promoting a healthy and educated population
- Capital Budget Allocation
The 2025 expenditure is projected at ₦47.90 trillion, a 36.6% increase from the 2024 budget. Of this, ₦16.48 trillion is earmarked for capital expenditure, reflecting an 11.2% rise. This allocation will prioritize projects nearing completion, particularly those in sectors such as national security, health, education, agriculture, and infrastructure. - Geotagging for Monitoring
To enhance transparency, MDAs must provide GPS coordinates for projects valued at over ₦150 million. This will enable geotagging and facilitate technology-driven monitoring and evaluation. - Personnel and Pension Costs
Personnel and pension costs are estimated at ₦9.64 trillion, a 58.7% increase from 2024, driven by the implementation of the new minimum wage. - Debt Servicing and Development Commissions
The budget allocates ₦15.81 trillion to debt servicing, including ₦430.27 billion for maturing bonds. It also includes provisions for the newly established South-East, South-West, and North-West Development Commissions.
Government’s Call for Pragmatism
MDAs have been cautioned against initiating new projects without ensuring adequate provisions for ongoing ones. The circular also stresses that projects must be feasible for completion within the medium term, specifically by the end of 2025.
This directive aligns with the government’s broader objectives of strengthening fiscal responsibility, fostering sustainable development, and ensuring efficient utilization of public funds.
Public Reaction
The Federal Government’s focus on completing ongoing projects has garnered mixed reactions. While many have lauded the initiative as a pragmatic step towards reducing waste and ensuring accountability, critics argue that the exclusion of new projects could slow economic growth in some sectors.
As the budget preparation process unfolds, all eyes will remain on the Federal Government to ensure that this directive translates into impactful implementation and tangible results.
Stay tuned to The Bureau Newspaper for updates on this and other government policies.