The Federal Government of Nigeria has extended the implementation timeline for the capital component of its 2024 national budget of ₦14.1 trillion by an additional six months, from June 30, 2025, to December 31, 2025, marking the second extension for the 2024 budget and reinforcing the practice of running multiple budgets concurrently. On Tuesday, June 24, 2025, the Senate initiated the legislative process to formalize this extension through a bill sponsored by Senator Olamilekan Adeola, Chairman of the Senate Committee on Appropriations. The bill, titled “A Bill for an Act to Amend the 2024 Appropriation Act,” passed its first and second readings swiftly, with Senate rules suspended to expedite its consideration. The Senate Committee on Supply reviewed and returned the bill for passage, reflecting strong political support following President Bola Tinubu’s request to ensure full execution of capital projects. The Senate also mandated its Committees on Appropriations and Finance to investigate delays in capital fund releases and overall budget performance, with a report due within one week.
Senator Adeola, in his lead debate, emphasized the need for the extension to allow ministries, departments, and agencies (MDAs) to fully utilize released funds, particularly for critical projects nearing completion, to avoid abandonment and ensure value for money. However, several senators expressed concerns about the implications of repeated extensions. Senator Yahaya Abdullahi warned that fiscal credibility is eroding, noting that dual extensions in one budget cycle are unprecedented and demanding transparency on cash flow issues. Senator Abdul Ningi questioned whether revenue shortages were the cause, while Senator Seriake Dickson criticized the full release of recurrent funds benefiting civil servants over stalled capital projects, blaming political distractions like 2027 election preparations. Senate Minority Leader Abba Moro reluctantly supported the extension but called for an overhaul of the payment process and greater engagement with the Ministry of Finance to prevent further embarrassment to the National Assembly.
The House of Representatives, which passed similar legislation, saw lawmakers like Deputy Spokesman Philip Agbese and Deputy Chairman of the Committee on National Planning, Clement Jimbo, defend the extension as necessary to complete critical projects and avoid economic setbacks. Jimbo attributed the need to revenue shortfalls, citing global oil prices at $64 per barrel against the budgeted $75 and production at 1.6 million barrels per day versus 1.75 million. Both dismissed concerns about running the 2024 and 2025 budgets concurrently, arguing it poses no immediate economic harm. However, the extension undermines the House’s 2024 efforts to curb multiple budget cycles through bills under review by the Ad-hoc Committee on Constitution Review, chaired by Deputy Speaker Benjamin Kalu, aimed at limiting supplementary budgets and addressing implementation delays.
Economic experts raised concerns about the trend. Muda Yusuf, Director General of the Center for Promotion of Private Enterprise (CPPE), attributed poor capital budget performance to unrealistic revenue assumptions, forward sales of crude oil, and high debt service obligations, urging a reform to align budgets with funding capacity. Tunde Abidoye of FBNQuest Merchant Bank highlighted weak execution, administrative bottlenecks, and overambitious capital budgets but noted the extension ensures funding for ongoing projects. The practice of extending budgets, seen with the 2022 budget into 2023 and the 2023 budget into 2024, alongside supplementary budgets, reflects structural challenges like delayed fund releases and weak procurement planning. Posts on X, such as @SaharaReporters and @Naija_PR, reflect public frustration, with @ChuksEricE criticizing the overlap as fiscal mismanagement, while @DailyTrust notes the Senate’s probe may uncover systemic issues
Leave a Reply