By Babatunji Wusu| The Senate has extended the implementation period for the capital component of the 2025 Appropriation Act, a move that has raised fresh concerns about Nigeria’s ability to execute its budget effectively. Fiscal policy observers say the decision reflects ongoing weaknesses in public finance management and project implementation.
Lawmakers approved a three-month extension of the capital expenditure deadline, moving it from June 30 to September 30, 2026. The resolution, sponsored by Senate Chief Whip Tahir Monguno, received unanimous support after a closed-door session and an extended plenary sitting.
Explaining the decision, Monguno said several Ministries, Departments and Agencies (MDAs) had yet to utilise substantial funds already released for capital projects due to procurement delays, administrative hurdles and other implementation challenges. He warned that ending the spending window as scheduled could lead to abandoned projects and wasted public resources.
The 2025 Appropriation Act extension follows an earlier adjustment granted after many government agencies failed to meet their initial implementation targets. Senate President Godswill Akpabio directed that the resolution be transmitted immediately to the executive, noting that payments for ongoing projects could have been disrupted without the additional time.
The development comes as scrutiny intensifies over the 2026 budget, which civic technology organisation BudgIT has described as ambitious but difficult to achieve under current economic realities. The approved budget stands at N68.32 trillion, while projected revenue is estimated at N36.87 trillion, creating a fiscal deficit of N31.45 trillion.
According to BudgIT’s analysis, only 53.9 per cent of the budget can be funded through projected revenues, with the remaining portion dependent on borrowing. The organisation also highlighted concerns over rising debt obligations, with N15.8 trillion allocated to debt servicing.
Commenting on the situation, BudgIT’s Head of Research and Policy Advisory, Adeoke Akinbode, called for stronger fiscal discipline, realistic revenue forecasts and tighter controls on government spending. Analysts believe the extension of the 2025 Appropriation Act further highlights the gap between budget projections and implementation capacity, underlining the need for greater transparency and accountability in public finance management.
