Tinubu misses fiscal reset target as lawmakers extend 2025 capital spending

PRESIDENT Bola Tinubu has fallen short of his March 31 target to end Nigeria’s overlapping budget cycles, after the National Assembly approved an extension of the 2025 capital budget to June 30. The decision came even as lawmakers passed the 2026 appropriation bill, effectively sustaining the dual-budget structure the administration had pledged to phase out.

The newly approved 2026 budget stands at N68.3 trillion, reflecting an increase of about N9.8 trillion from the original proposal presented in December. This adjustment means the government will continue operating two fiscal frameworks simultaneously for at least another quarter, BusinessDay reported.

Tinubu had earlier set the March deadline as part of efforts to streamline public finance management and eliminate inefficiencies tied to rolling over budgets. However, the latest move by lawmakers suggests that elements of the old system remain intact, raising concerns about policy consistency.

READ ALSO: FG to implement only 30% of 2025 capital budget by November 2026

The amendment extending the 2025 capital expenditure window was passed during plenary, with legislators citing the need to ensure adequate disbursement and utilisation of funds allocated to Ministries, Departments and Agencies (MDAs).

Experts warn that running parallel budgets complicates planning for infrastructure, social services, and security, while also weakening investor confidence in fiscal discipline.

The situation has been further muddied by differing signals from government officials. While the presidency had instructed MDAs to conclude all rollover spending by March, earlier guidance from former Minister of State for Finance, Dr Doris Uzoka-Anite, allowed agencies to carry forward as much as 70 percent of their 2025 capital allocations into 2026, leaving only 30 percent for execution before the deadline.

Although Senate President Godswill Akpabio had pledged alignment with the March cutoff, delays in budget deliberations, including prolonged defence sessions, meant the deadline was missed. The process was further slowed by disruptions affecting the Appropriation Committee, chaired by Solomon Adeola, who has been engaged in political activities in Ogun State.

Data from the Budget Office underscores the challenge: of the N18.53 trillion allocated for capital projects in 2025, only N834.8 billion, about 7.72 percent, had been released between January and July, far below expected levels.

A Lagos-based economist, Mr Joel Alabi, argued that meaningful reform must go beyond policy announcements to include clear revenue strategies, defined spending priorities, and greater transparency.

Despite assurances from the Office of the Accountant-General that funds have been authorised for disbursement, concerns persist about execution.

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Still, analysts say the continued reliance on rollover spending highlights the ongoing difficulty of aligning fiscal plans with real-world execution, warning that without systemic reforms, Nigeria’s budget cycle may remain prone to delays and inefficiencies.

The budget passage

On Tuesday, lawmakers in the Senate and the House of Representatives passed the appropriation bill during plenary, concluding the legislative process on the spending plan.

President Bola Tinubu had initially presented a N58.47 trillion budget proposal to the National Assembly in December 2025. However, he later requested an upward adjustment of N9.81 trillion, which was submitted on Tuesday.

According to the president, the increase was necessary to enhance fiscal transparency and support the effective execution of key government programmes.

Tinubu explained that part of the adjustment would address outstanding capital commitments carried over from previous budgets, ensuring that unresolved obligations do not weigh on the 2026 fiscal plan.

He also proposed the consolidation of existing government debts from earlier fiscal cycles into the 2026 budget framework, noting that this would create room for limited but strategic investments in critical sectors such as transport, healthcare, and institutional capacity.

READ ALSO: Health ministry’s projects freeze over lack of funding, MDAs carry over 2025 budget

The president said the move became necessary as many of the pending obligations may not be executed before the expiration of the 2025 capital budget implementation period.

Further details of the proposal include N478.6 billion in federal government equity under the ministry of finance to support legacy light rail projects in Lagos and Kano, as well as feasibility studies for similar urban rail systems in Enugu and Maiduguri.