President Bola Tinubu has signed the Appropriation (Amendment) (No. 4) Bill, 2025, into law, extending the implementation period of the capital component of the 2025 budget. The bill was signed into law barely 24 hours after both chambers of the National Assembly passed it. This move gives Ministries, Departments, and Agencies more time to complete ongoing capital projects.
The extension, announced by presidential spokesperson Bayo Onanuga, changes the implementation period from September 30, 2026, to December 31, 2026. This allows the government to fully utilize funds already appropriated for the 2025 budget without disrupting critical programs. The President commended the National Assembly for their prompt consideration of the bill.
This marks the fourth extension of the 2025 budget's capital component, which was initially set to end on December 31, 2025. The implementation period was first extended to March 31, 2026, then to June 30, 2026, and subsequently to September 30, 2026. The repeated extensions have been a source of concern among lawmakers and economic analysts.
The practice of extending budget implementation beyond the fiscal year has been criticized by many. In October 2025, former Minister of Finance Wale Edun pledged to end this practice. President Tinubu also promised to terminate the habit of operating overlapping budgets in December 2025, assuring Nigerians that all capital liabilities would be fully funded and closed by March 31, 2026.
Despite these promises, the latest extension indicates that the capital component of the 2025 budget will remain open until the end of 2026. This suggests that the government has not met the timeline outlined by the President. The extension allows for the completion of ongoing projects captured in the budget.
The cooperation between the Executive and the Legislature in this matter has been highlighted as a positive development. The swift passage of the amendment bill by both the Senate and the House of Representatives demonstrates this cooperation. The President's assent to the bill ensures that funds are put to work for Nigerians without disrupting critical programs.
The implications of this extension will be closely watched by economic analysts and lawmakers. The government's ability to complete ongoing projects and fully utilize appropriated funds will be crucial in assessing the effectiveness of this extension. The President's commitment to ending the practice of operating overlapping budgets will also be scrutinized in the coming months.
Key points
- The 2025 budget's capital component implementation period has been extended to December 31, 2026.
- This marks the fourth extension of the 2025 budget's capital component.
- The government has not met the timeline outlined by President Tinubu to end the practice of operating overlapping budgets.
