The Nigerian Senate has approved an extension of the implementation of the capital component of the 2025 Appropriation Act, moving the deadline from September 30 to December 31, 2026. This decision was made after the passage of a bill sponsored by Senate Leader Opeyemi Bamidele. The bill aims to amend the 2025 Appropriation Act and extend the implementation period of its capital component. This extension will enable Ministries, Departments, and Agencies (MDAs) to complete ongoing projects and utilize appropriated funds.
The extension was necessitated by the slow implementation of capital projects under the 2025 Appropriation Act, despite the release of funds to MDAs. According to Bamidele, the implementation of capital projects had not reached optimal levels. The bill, titled "A Bill for an Act to Amend the Appropriations (Repeal & Enactment) Act 2025," seeks to extend the implementation period of the capital component of the 2025 Appropriation Act. This is the latest extension of the lifespan of the 2025 capital budget.
The National Assembly had previously extended the implementation period from March 31 to June 30, 2026, and subsequently to September 30, 2026. These extensions were made to allow the government to complete ongoing capital projects and meet outstanding obligations. The latest extension means that funds appropriated under the capital component of the 2025 budget will remain available for implementation until December 31, 2026, subject to the President's assent.
The extension comes against the backdrop of the Federal Government's earlier pledge to end the practice of overlapping budgets. President Bola Tinubu had stated that the government would move away from multiple overlapping budget cycles and operate within a single revenue cycle. However, the government had previously justified extensions of the 2025 budget on the need to complete ongoing projects and ensure effective utilization of appropriated funds.
In April, the Presidency said an earlier extension was intended to enable MDAs to consolidate ongoing works, improve project completion rates, and maximize value for public expenditure. The Senate's approval of the latest extension came on the first day of its resumed plenary after an extended legislative recess. The National Assembly had shifted its resumption from September 15 to September 29 to allow for the completion of rehabilitation works in the legislative chambers.
With the passage of the bill, the 2025 capital budget will now remain open for implementation for an additional three months beyond the September 30 deadline. This will give MDAs more time to complete ongoing projects and utilize appropriated funds. The extension is expected to help the government meet its outstanding obligations and complete ongoing capital projects.
The Senate's decision to extend the implementation period of the 2025 capital budget is a significant development in Nigeria's budget implementation process. The extension will help ensure that appropriated funds are utilized effectively and that ongoing projects are completed. The government's commitment to completing ongoing projects and ensuring effective utilization of appropriated funds is reflected in this extension.
Key points
- The Nigerian Senate has approved an extension of the implementation of the capital component of the 2025 Appropriation Act to December 31, 2026.
- The extension was made to enable Ministries, Departments, and Agencies (MDAs) to complete ongoing projects and utilize appropriated funds.
- This is the latest extension of the lifespan of the 2025 capital budget, which was previously extended from March 31 to June 30, 2026, and subsequently to September 30, 2026.
