The Federal Government has merged unspent capital funds from the 2024 budget into the 2025 appropriation through the Government Integrated Financial Management Information System (GIFMIS) to improve disbursement efficiency and channel resources into productive investments.
In a statement on Wednesday, the Director of Information and Public Relations at the Federal Ministry of Finance, Mohammed Manga, said the move aims to accelerate economic growth, boost infrastructure delivery, and strengthen private sector confidence.
Under the revised framework, Ministries, Departments, and Agencies (MDAs) must now secure warrants before entering into contracts, a measure designed to align expenditure with available cash and enforce strict financial discipline.
The integration follows the National Assembly’s decision to extend the implementation period of the 2024 capital budget—first to June 2025, and later to December—allowing it to run concurrently with the 2025 budget.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, who convened senior government officials in Abuja to fine-tune the budget execution process, stressed the importance of transparent and efficient spending to President Bola Tinubu’s growth agenda, which targets at least 7% GDP expansion.
“Effective, honest, and targeted spending is critical. We must ensure that public resources work harder for our people and our economy,” Edun said.
According to the Finance Ministry, the reforms are expected to create a more predictable fiscal environment, improve payment cycles, and strengthen infrastructure pipelines, laying a foundation for increased investment and job creation.
GIFMIS, introduced in 2003, is an IT-based system designed for budget management and accounting across federal agencies.
