The National Assembly has approved a fourth extension of the implementation period for Nigeria’s 2025 capital budget, moving the deadline from September 30 to December 31, 2026.
The Senate passed the 2026 amendment bill after it scaled second and third readings on Tuesday, while the House of Representatives also approved the extension following a motion by its Majority Leader, Julius Ihonvbere.
The development means the capital component of the N54.99 trillion 2025 budget will remain open throughout 2026, even as the Federal Government implements the N68.32 trillion 2026 budget, which commenced on April 1.
The 2025 budget, signed into law by President Bola Tinubu in February 2025, was originally expected to end on December 31, 2025. Its capital component has since been extended several times to allow government agencies to complete ongoing projects and settle outstanding obligations.
Concerns Over Overlapping Budgets
The latest extension has renewed concerns about Nigeria’s long-standing practice of carrying previous budgets into new fiscal years.
President Tinubu had earlier promised to end overlapping budget cycles, saying capital liabilities from previous years would be cleared by March 31, 2026, paving the way for a single budget and revenue cycle.
Economists, however, say bureaucratic delays, procurement procedures and slow fund releases continue to affect budget implementation.
The Ministry of Budget and Economic Planning had also directed MDAs to roll over 70 per cent of their 2025 capital allocations into 2026, with priority given to completing ongoing projects.
Economic Implications
Experts have warned that prolonged budget extensions could create uncertainty for contractors, businesses and government agencies, while making it more difficult to measure the performance of individual budgets.
Concerns have also been raised over delayed payments to contractors and irregular funding, which some industry stakeholders say have affected the pace of infrastructure projects.
The 2026 budget provides about N32.2 trillion for development fund capital expenditure, increasing the importance of timely releases and effective implementation.
Senate Defends Extension
The Senate defended the extension, saying it would prevent already-funded projects from being abandoned and give MDAs more time to fulfil outstanding obligations.
Senate Leader Opeyemi Bamidele and Senate President Godswill Akpabio argued that allowing the 2025 capital budget to lapse could leave projects unfinished and funds unutilised.
With the 2025 and 2026 budgets now operating concurrently, stakeholders are calling for faster procurement processes, timely fund releases and greater predictability in Nigeria’s budget implementation.