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NASS extends 2025 budget implementation to March 31, 2026
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Lawmakers approve revised N43.5tn 2024 budget, N48.3tn 2025 framework
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Move targets revenue shortfalls, weak capital execution, overlapping budgets
The National Assembly has approved an extension of the 2025 fiscal year to March 31, 2026, amid efforts to address revenue shortfalls, poor capital budget implementation and overlapping budget cycles.
The decision followed the passage of revised Appropriation Act (Repeal and Re-enactment) Bills for the 2024 and 2025 fiscal years during plenary sessions of both chambers on Tuesday.
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Under the revised framework, lawmakers approved a N43.5 trillion 2024 budget, up from the original N35.01 trillion, and a reworked N48.3 trillion 2025 budget, reduced from the earlier N54.99 trillion proposal.
At the Senate, the bills were adopted following the presentation of a consolidated report by the Chairman of the Committee on Appropriations, Senator Solomon Adeola. He explained that the revisions were necessary to align Nigeria’s budget structure with prevailing fiscal realities, revenue constraints and debt sustainability concerns.
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Adeola disclosed that the 2024 budget was expanded to accommodate additional capital spending, including N8.5 trillion for special security, humanitarian and economic interventions. He added that the 2025 budget was adjusted downward, with N6.67 trillion in capital expenditure deferred to the 2026 fiscal year due to funding limitations.
He warned that running multiple budgets concurrently undermines fiscal discipline and accountability, stressing that extending the lifespan of the 2025 budget was a corrective step to restore order to the budgeting process.
The House of Representatives also passed the revised budgets after clause-by-clause consideration at the Committee of Supply, with Speaker Tajudeen Abbas presiding over the session.
A breakdown of the revised 2024 budget shows allocations of N1.74 trillion for statutory transfers, N8.27 trillion for debt servicing, N11.26 trillion for recurrent (non-debt) expenditure and N22.27 trillion for capital expenditure.
For the 2025 fiscal year, N3.64 trillion was approved for statutory transfers, N14.31 trillion for debt servicing, N13.58 trillion for recurrent (non-debt) expenditure and N16.76 trillion for capital spending.
President Bola Tinubu, in his communication to the National Assembly, said the revisions were informed by gaps in capital execution and the need to adopt a more realistic implementation benchmark of 30 per cent.
He noted that extending the 2025 budget to March 2026 would allow Ministries, Departments and Agencies more time to access and utilise capital releases, adding that the reforms are aimed at ending the long-standing practice of overlapping budgets and improving transparency and efficiency in public spending.
