President Bola Ahmed Tinubu has missed his March 31 deadline to end Nigeria’s overlapping budget cycles, as lawmakers approved measures that effectively extend the existing system.
Although the National Assembly passed the 2026 budget at 68.3 trillion naira—an increase of 9 trillion naira from the initial proposal—it also extended the capital component of the 2025 budget to June 30. This means the government will continue operating multiple fiscal frameworks for at least another quarter.
The president had earlier announced plans to end the practice of running concurrent budgets in order to improve efficiency. However, the latest decision by lawmakers allows elements of the rollover system to remain, raising concerns about consistency in fiscal policy.
Lawmakers justified the extension by citing the need to give Ministries, Departments, and Agencies more time to access and utilise allocated funds. Still, experts warn that operating overlapping budgets can create uncertainty in infrastructure planning, social services, and security funding, while also affecting investor confidence.
Some officials had already taken a flexible stance before the deadline. The Minister of State for Budget and Planning, Doris Uzoka-Anite, had earlier directed agencies to roll over a large portion of their capital allocations into the 2026 budget, effectively sustaining the transition system.
Delays in the legislative process also contributed to the missed deadline, despite earlier assurances from Senate President Godswill Akpabio that lawmakers would align with the timeline.
Economists say the situation highlights deeper structural issues in Nigeria’s fiscal system, noting that policy declarations alone are not enough without proper coordination among government institutions. They also warn that political considerations, especially ahead of elections, could further slow reforms.
Concerns have been compounded by low capital releases. Data indicates that only a small fraction of funds allocated for capital expenditure in 2025 has been disbursed, raising questions about budget implementation efficiency.
Despite assurances from the Office of the Accountant-General that funds are being released and implementation is ongoing, analysts believe the continued reliance on rollovers reflects ongoing challenges in aligning fiscal policy with execution.
