The Federal Government of Nigeria has disclosed plans to present the 2027 budget before the end of the year. This move is aimed at giving the National Assembly time to pass it before the new fiscal year. The Minister of State for Budget, Dr Doris Uzoka-Anite, announced this after the Federal Executive Council meeting in Abuja. The 2027 budget will be added to a fiscal calendar that is already crowded, with the capital component of the 2025 budget still in force alongside the 2026 budget.
The National Assembly had earlier ratified both the 2025 and 2026 budgets to run concurrently. The 2026 budget of N68.32 trillion took effect on April 1 and is running at the same time as the unfinished 2025 capital spending. This practice of having multiple budgets within a fiscal year is not new, with Nigeria effectively operating three budgets in 2024. The government had directed ministries, departments, and agencies to roll over 70 per cent of their 2025 capital allocations into 2026 due to weak implementation.
The Public and Private Development Centre reported that only 18 per cent of the capital budget had been spent by the end of September 2025, while revenue stood at 61 per cent of target. Lawmakers have criticised the practice, with Senator Danjuma Goje calling multiple budgets within a fiscal year unacceptable. A member of the House of Representatives, Hon. Abubakar Bichi, also acknowledged that extending an old budget deep into a new year weakens clarity and fiscal discipline.
Experts have also expressed concerns over the practice, with Abiodun Ogunniyi, Head of Research and Strategy at GTI Investment Group, stating that starting a 2027 budget while the 2025 and 2026 budgets are running together is "very, very problematic". He said investors read budgets as a statement of government priorities and use them to decide where to put their capital. The overlapping budgets weaken the utility of the budgets as an economic signal and hurt the government's own oversight.
The Federal Government has also approved a Revised National Policy on Food and Nutrition to replace older frameworks and establish sustainable financing and strengthen inter-ministerial collaboration. The policy aims to tackle child stunting and boost national food security. Additionally, the government has endorsed the National Development Plan 2026–2030, which is expected to guide the country's development over the next four years.
Nigeria's crude oil production rose by two per cent month-on-month to 1.53 million barrels per day in September 2026, recovering from two consecutive months of decline. However, the modest recovery remains insufficient to bridge the widening gap between actual output and the Federal Government's 2027 budget target. The country is facing concerns over its ability to maximise revenue from the current surge in international crude oil prices.
The 2027 budget will face the same test as previous budgets, with the possibility of carrying over 2026 capital projects into 2027. The government has not said how it will avoid this, and details of the 2027 budget, including its size, revenue assumptions, deficit, and sector allocations, are yet to be released to the public. The budget serves as the Federal Government's principal fiscal policy instrument, setting out its spending priorities, revenue expectations, and economic objectives for the year.
Key points
- The Federal Government plans to present the 2027 budget before the end of the year.
- The 2025 and 2026 budgets are running concurrently, with the capital component of the 2025 budget still in force.
- Experts have expressed concerns over the practice of having multiple budgets within a fiscal year, citing weakened oversight and dull investment signals.
