The National Assembly of Nigeria has extended the implementation period of the capital component of the 2025 Appropriations Act for the fourth time, from September 30 to December 31, 2026. This decision was made through an amendment to the Appropriations Repeal and Enactment Act 2025. The extension aims to prevent the abandonment of ongoing projects and ensure that appropriated and released funds are properly utilised.
The extension has raised questions about Nigeria's fiscal planning, execution bottlenecks, and whether repeated extensions are becoming the country's new budgetary norm. When a legislature extends the lifespan of a budget once, it may be seen as an administrative response to unforeseen circumstances. However, repeated extensions suggest issues with policy, planning, and institutional capacity.
The Senate Leader, Senator Opeyemi Bamidele, presented the amendment in the Red Chamber, explaining that several capital projects remained at different stages of implementation, while significant amounts of released capital funds had not been utilised. He noted that capital expenditure involves procurement, contract award, mobilisation, execution, certification, and payment, all of which require proper coordination.
Senate President, Senator Godswill Akpabio, argued that allowing the September 30 deadline to expire could create difficulties for ministries, departments, and agencies seeking to complete projects already at advanced stages. He warned against allowing abandoned projects to proliferate across the country, citing that several contractors had neither completed their projects nor received full payment for work executed under the 2025 Appropriations Act.
The extension has been defended as necessary to prevent the abandonment of ongoing projects and ensure that appropriated and released funds are properly utilised. The argument is that it would be wasteful to terminate projects that are already substantially completed merely because the legal window for spending the relevant appropriation has expired.
The repeated extensions have moved the debate beyond whether the 2025 capital budget deserves additional time. It should compel the Federal Government, National Assembly, and fiscal authorities to examine why budget implementation routinely falls behind schedule in the first place. This would help identify and address the root causes of the delays.
The National Assembly's decision highlights the need for improved fiscal planning and execution in Nigeria. The country's budgeting process requires scrutiny to ensure that public funds are utilised efficiently and effectively. The extension has also underscored the importance of proper coordination and implementation of capital projects to prevent waste and ensure the delivery of essential infrastructure.
Key points
- The National Assembly has extended the 2025 capital budget implementation period for the fourth time, raising concerns about Nigeria's fiscal planning and execution bottlenecks.
- The extension aims to prevent the abandonment of ongoing projects and ensure that appropriated and released funds are properly utilised.
- The repeated extensions have sparked a debate about whether they are becoming Nigeria's new budgetary norm, highlighting the need for improved fiscal planning and execution.
