Nigeria has unveiled sweeping reforms to its capital budget process in a bid to accelerate economic growth and strengthen investor confidence.

Finance Minister and Coordinating Minister of the Economy, Mr. Wale Edun, announced the measures on Wednesday in Abuja, outlining a framework that ties capital spending strictly to available cash flow and enforces tighter contract approval rules for Ministries, Departments, and Agencies (MDAs).

A key change will see unspent 2024 capital funds rolled into the 2025 budget through the Government Integrated Financial Management Information System (GIFMIS). Additionally, MDAs must now obtain warrants before entering into contracts, a measure aimed at eliminating financial leakages and improving accountability.

“Nigeria’s future growth depends on effective, honest, and targeted spending. We must ensure that public resources work harder for our people and our economy,” Edun said, stressing that transparent and efficient budget execution is central to President Bola Ahmed Tinubu’s agenda of achieving a GDP growth rate of at least 7% to lift millions out of poverty.

The reforms are designed to enforce fiscal discipline, streamline payment cycles, and strengthen infrastructure pipelines—critical factors for attracting both local and foreign investment. According to Edun, these changes signal “a more predictable fiscal environment” for the private sector, supporting job creation and economic stability.

The new approach is also expected to tackle long-standing challenges such as abandoned projects and delayed contractor payments, unlocking faster delivery of development projects.

With the reforms in place, the Federal Government says Nigeria is now better positioned to channel every naira of capital spending into projects that directly boost economic productivity and deliver sustainable growth.