Senate extends 2025 capital budget implementation by three months

THE Senate has approved an extension of the implementation period for the capital component of the 2025 Appropriation Act, allowing federal ministries, departments and agencies (MDAs) until September 30, 2026, to utilise allocated funds.

The resolution was adopted on Wednesday following a motion sponsored by Senate Chief Whip, Tahir Monguno, and senator representing Borno North. The motion, which came after an executive session, was seconded by senator representing Anambra Central, Mr Victor Umeh.

Umeh said the extension was necessary to ensure the completion of projects already captured under the 2025 budget.

Lawmakers noted that the appropriation law was designed to finance government programmes and projects targeted at economic growth, infrastructure development, national security and improved welfare for Nigerians.

According to the Senate, although significant releases have been made to MDAs, a substantial portion of the funds remains unspent due to procurement processes, implementation bottlenecks and other administrative requirements.

The lawmakers observed that several strategic projects across key sectors are nearing completion but require additional time for execution, certification and payment. They warned that allowing the implementation window to lapse could result in abandoned projects, waste of public resources and disruption to ongoing government interventions.

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The Senate further expressed concern that some projects contained in the 2025 budget may not be accommodated in future appropriation laws, potentially creating funding shortfalls and slowing national development efforts.

Senators argued that extending the validity of the capital component would improve budget performance, ensure better utilisation of released funds, enhance service delivery and support economic expansion.

Consequently, the upper chamber amended the 2025 Appropriation Act to extend the implementation period of its capital component from June 30, 2026, to September 30, 2026.

Speaking during deliberations, Solomon Adeola, chairman of the Senate Committee on Appropriation and senator representing Ogun West, said the move was aimed at ensuring the budget achieves its intended objectives.

He explained that while payments under the capital budget had commenced, a significant portion remained outstanding, making an extension necessary.

Adeola expressed optimism that the remaining obligations would be settled before the new deadline, while implementation of projects rolled into the 2026 budget could proceed concurrently.

The motion was subsequently approved through a voice vote.