BudgIT has expressed concern over the Federal Government’s decision to defer the implementation of about 70 per cent of capital projects captured in the 2025 Appropriation Act to the 2026 fiscal year, warning that the move could further strain Nigeria’s already fragile budget framework if not properly managed.
In a statement signed by Nancy Odimegwu, Senior Communications Associate, the civic-tech organisation said the decision, taken through the Federal Ministry of Budget and Economic Planning, was not entirely unexpected but raised critical questions around fiscal discipline, transparency, and budget credibility.
BudgIT noted that the deferment appears to be an attempt to reduce the number of capital projects under execution, prioritise critical interventions, manage limited resources more efficiently, and curb the persistent problem of abandoned projects. According to the group, the approach suggests a plan to carry forward existing 2025 projects—many aligned with current economic strategies—rather than introduce an entirely new set of capital items in 2026.
The organisation described the move as a possible restructuring of capital project sequencing, adding that if implemented with discipline, it could help stabilise public finances and restore confidence in the budgeting process. However, it cautioned that without firm rules, the deferment could merely postpone inefficiencies rather than resolve them.
BudgIT recalled its long-standing concerns about Nigeria’s budgeting process, particularly the failure to adhere to approved budget timelines and the practice of running multiple fiscal programmes simultaneously. These, it said, create significant opportunities for waste and weaken the developmental impact of capital spending. The group reiterated its position that unfinished but still relevant projects should be consolidated through supplementary budgets within the same fiscal year instead of being routinely rolled over.
According to BudgIT, the continuous inclusion of numerous low-priority and uncoordinated projects has bloated federal capital expenditure and increased public debt without clear developmental outcomes. This challenge is further compounded by the absence of disaggregated reports on capital expenditure implementation, making it difficult for citizens to track project delivery.
The organisation also highlighted lingering issues from the 2024 fiscal year, noting that the Federal Government extended the implementation of both the 2024 Appropriation Act and the 2024 Supplementary Appropriation Act into mid-2025 and later to December 2025. As a result, although the 2025 budget was passed and signed into law, BudgIT said implementation appeared largely limited to recurrent expenditure, such as personnel and overhead costs.
BudgIT added that the lack of federal budget implementation reports for 2025 and indications that revenues from that year were used to fund 2024 obligations raise concerns about whether the 2024 fiscal year has been formally closed. It warned that failure to properly close fiscal accounts undermines transparency, financial reporting, and consolidation standards.
The organisation stressed that the deferment of capital projects must be clearly justified during budget defence sessions at the National Assembly, urging the Executive to demonstrate that the move is aimed at restoring order to Nigeria’s fiscal framework and ending the practice of overlapping budgets. It also criticised what it described as the routine inflation of appropriation bills during the legislative process, arguing that this often undermines sound fiscal planning.
Commenting on the development, BudgIT’s Deputy Country Director, Vahyala Kwaga, said the deferment would only be meaningful if it marked a decisive break from weak budgeting practices. He warned that without strict adherence to timelines, proper fiscal closure, and transparent payment systems, the government risks merely shifting inefficiencies into another fiscal year.
BudgIT further called on the Federal Government to fully implement the Bottom-Up Cash Plan outlined by the Federal Ministry of Finance, noting that direct payment to verified contractors could improve efficiency and accountability if properly enforced.
The organisation urged key institutions—including the Ministry of Finance, the Ministry of Budget and Economic Planning, the Budget Office of the Federation, the Bureau of Public Procurement, and relevant MDAs—as well as President Bola Ahmed Tinubu to uphold transparency, legal compliance, and accountability in the management of public funds. It also called on citizens, civil society groups, the private sector, and the media to actively scrutinise capital expenditure implementation in the national interest..
