The Federal Government of Nigeria has begun disbursing funds owed for capital projects approved in the 2024 budget. This marked start of payments aims to clear long-standing arrears and tighten budget execution. The Presidency has also set a strict deadline of March 31, 2026, for completing all capital expenditure elements in both the 2024 and 2025 national budgets.
Officials describe the move as part of a renewed effort to eliminate backlogs and accelerate activity on infrastructure and development projects. The announcement was made by the Special Adviser on Media and Public Communication to the President, Sunday Dare, in a post on X, underscoring the administration’s intent to enforce planning timelines and improve delivery outcomes.
The Presidency’s statement clarified that payments toward the unfinished capital spending from 2024 have “now commenced,” reflecting a shift away from delays that have plagued past execution cycles. The government is also addressing inherited payment obligations from previous administrations as part of its commitment.
Beyond settling 2024 liabilities, authorities are pushing to execute and close out capital components in both the 2024 and 2025 budgets by March 31, 2026. Officials said this deadline applies uniformly to all approved capital allocations within these fiscal frameworks.
A key procedural requirement has been issued to all government ministries, departments, and agencies (MDAs): they must submit or upload their cash plans for the 2025 capital budget by the close of business on Monday, February 23, 2026. Once that documentation is in place, the government has signalled that “payment processing will begin immediately thereafter.”
The directive places clear timelines on MDAs to meet documentation requirements, reducing administrative friction and facilitating the smooth rollout of payments. By imposing a close-of-business deadline for cash plan submission, the government is signalling accountability expectations and tighter controls over fiscal processes.
This development follows assurances earlier in February by the Minister of State for Finance, who told lawmakers that outstanding capital payments under both 2024 and 2025 would be processed before the end of March. Her comments came during discussions with the Senate Committee on Appropriations and economic officials reviewing the proposed N58.472 trillion 2026 appropriation.
The Minister emphasised that the nation’s financial management system is now fully restored, enabling more efficient processing of capital disbursements once documentation is complete. She reiterated that MDA compliance with submission requirements is essential for timely payments to be released.
In context, the government has previously extended the implementation periods for some budget components to facilitate project completion and stabilize fiscal planning. The deadline of March 31, 2026 is now positioned as the final milestone to conclude capital budget execution for two consecutive years.
By setting firm deadlines and requiring immediate action from MDAs, Nigeria aims to demonstrate a more disciplined approach to public finance management. This, government officials hope, will improve trust in budget performance and avoid protracted delays that have historically undermined project delivery and economic impact.
