Economic and financial experts in Nigeria have expressed concerns that overlapping budgets of 2024 and 2025 are causing delays in the implementation of new capital projects. These projects are crucial for creating employment and building infrastructure that would benefit the ordinary Nigerian. The Budget Office of the Federation had concluded the draft 2027–2029 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper in July 2026, aiming for a September submission. However, the process has faced delays due to overlapping fiscal cycles, administrative reviews, and submission bottlenecks from Ministries, Departments, and Agencies (MDAs).
The National Assembly recently extended the implementation of the capital component of the 2025 Appropriation Act to December 31, 2026, through a fourth amendment signed by President Bola Tinubu on September 30, 2026. This extension was necessary because several capital projects remained unfinished due to funding bottlenecks and economic pressures. According to experts, the overlapping budgets force the 2025 capital budget to run concurrently with the active 2026 cycle, undermining annual budgeting norms and weakening legislative oversight and audit trails.
Economic expert Terhemen Ayua noted that major parts of the 2026 budget would be rolled over to 2027, continuing the cycle of delays. He emphasized that implementing a budget means following the plan for the economic and social welfare of citizens each year. If the plan is not followed, it becomes challenging to achieve the promised objectives. Ayua questioned how the government could accomplish its goals without adhering to the budget plan.
Another expert, Eric Igulla, urged the federal government to improve the speed of budget implementation to enable the spread of developmental projects that would further impact the economy. He highlighted that the government has disclosed an increase in revenue mobilization, which means more money is available. Igulla stressed that this increase should translate into tangible economic benefits for the ordinary Nigerian who is not employed by the government.
The Lead Director of the Centre for Social Justice (CSJ), Eze Onyekpere, explained that the extension involves 30 percent of the 2025 capital vote. New capital projects were prohibited as MDAs were directed to roll over 70 percent of the 2025 capital vote, forming the foundation of the 2026 capital vote. Onyekpere described the state of fiscal affairs in Nigeria as "unconstitutional, unconscionable, and illegitimate," characterizing it as fiscal rascality and an incestuous conspiracy by the Executive and the National Assembly to deny the people their entitlements to infrastructure, service delivery, and good governance.
Analysts believe that the government must increase funding into key economic sectors to improve the benefits of budgeting to Nigerians. They argue that lack of fiscal discipline sets a poor precedent for administrative efficiency. The overlapping budgets and delayed implementation of capital projects hinder the country's development and affect the livelihood of its citizens.
Experts and analysts agree that the government needs to address the issues of overlapping budgets and delayed budget implementation to ensure that capital projects are completed on time. This, they argue, will help create employment, build necessary infrastructure, and ultimately benefit the ordinary Nigerian. The government is urged to take concrete steps to improve budget implementation and fiscal discipline to achieve these objectives.
Key points
- Overlapping budgets of 2024 and 2025 are causing delays in the implementation of new capital projects in Nigeria.
- The National Assembly extended the implementation of the 2025 budget to December 31, 2026, due to unfinished capital projects.
- Experts urge the government to improve budget implementation and fiscal discipline to benefit Nigerians.
