The federal government’s approach to public financial management has come under scrutiny following a series of decisions that have led to multiple, overlapping budget cycles, creating significant dissonance in the nation’s fiscal planning. This trend, which began to intensify in 2024, risks undermining the stability and predictability essential for effective economic governance.
The issue first came to a head in 2024, when the National Assembly approved an unprecedented three budgets operating simultaneously. This included the N21.8 trillion 2023 budget, inherited from the previous Muhammadu Buhari administration, alongside a N2.17 trillion supplementary budget prepared by the Tinubu administration in 2023, and the N28.7 trillion 2024 appropriation. Such a layered budgetary framework inherently complicates resource allocation, project implementation, and accountability.
The practice of extending budget implementation periods continued into 2025. The capital component of the 2024 budget, originally slated to conclude in December 2024, was extended twice. First, its validity was stretched to June 2025, and subsequently, it received a further extension to December 2025. These repeated extensions are widely viewed as detrimental to economic efficiency and the smooth functioning of the federal budgetary process, as they delay project completion, increase costs, and obscure financial reporting.
The Bola Tinubu administration now appears to be continuing this pattern, which deviates significantly from global best practices in budgeting and public financial management. On Friday, December 19, 2025, President Tinubu presented the N58.18 trillion 2026 Appropriation Bill, themed “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” to a joint sitting of the National Assembly. Concurrently, the President requested approval for a further extension of the 2025 Budget’s implementation period to March 31, 2026.
This request was accompanied by a proposal to transmit Appropriation (Repeal and Re-Enactment) Bills for both the 2024 and 2025 budgets. The stated rationale behind this move is to repeal the existing Appropriation Acts and re-enact revised expenditure plans that are intended to reflect current fiscal realities and execution capacity.
While the administration cites a need to align with current realities, the consistent practice of extending and overlapping budget cycles raises fundamental concerns about fiscal discipline and foresight. Such actions inherently complicate financial reporting, hinder comprehensive economic forecasting, and can lead to inefficient resource deployment. For the economy to thrive, a predictable, well-structured, and timely budgetary process is paramount.
President Bola Tinubu’s proposal to significantly alter the previously established budget figures has raised eyebrows in various circles. The 2024 budget, initially set at N35.06 trillion, is now advocated to be replaced with a substantially larger sum of N43.56 trillion – an increase of over N8 trillion. Concurrently, the 2025 budget, initially projected at N54.99 trillion, is proposed to be re-enacted at a reduced N48.32 trillion, marking a decrease of over N6 trillion. These adjustments are intended to cover statutory transfers, debt service, recurrent expenditures, and capital development contributions.
While budget adjustments are not uncommon, the magnitude and timing of these revisions, particularly when viewed in conjunction with other policy statements, signal a degree of uncertainty in state affairs. A key implication of these proposed changes is the potential for Nigeria to operate two budget cycles simultaneously. Should the President’s request to extend and re-enact the 2025 budget be approved alongside the signing of the 2026 budget into law, the nation would effectively be running overlapping budgets. This scenario stands in stark contrast to the administration’s earlier stated intention to streamline fiscal planning and enhance accountability, suggesting that policy formulation may be subject to frequent afterthoughts, irrespective of the urgency or desired changes.
Adding to these fiscal anomalies is a disturbing inconsistency in information emanating from the executive arm of government, particularly concerning revenue generation. The Minister of Finance, Mr. Wale Edun, recently disclosed that only approximately N10.7 trillion was generated in revenue in 2025, a figure dramatically below the projected N40.8 trillion. Mr. Edun attributed this significant shortfall to weak performance in the oil and gas sector, specifically citing Petroleum Profit Tax and Company Income Tax, alongside other underperforming revenue subheads.
However, in a conflicting statement, the Presidency conveyed a different narrative, asserting that the government had, in fact, achieved its entire revenue target for the year. Such divergent accounts from within the same government apparatus create an environment of confusion and erode public trust.
While official data points to some positive shifts, underlying challenges, particularly concerning public finance management, demand urgent and diligent attention.
The administration has recently celebrated a reported easing of inflation to below 15 per cent and an increase in Gross Domestic Product (GDP) growth rate to 3.98 per cent in the third quarter of 2025, up from 3.86 per cent in the same period of 2024. These macroeconomic improvements offer a glimmer of hope, suggesting some stabilization efforts are yielding results. However, for many Nigerians, the tangible impact on daily life remains elusive, with a significant portion of the population continuing to struggle to meet basic needs. This disparity underscores the critical need for economic policies that translate into widespread prosperity and improved living standards.
A primary area of concern centers on the government’s consistent reliance on borrowing to fund its expenditures. For the 2025 budget, despite the administration borrowing approximately N14.1 trillion, total inflows proved insufficient to fully fund the ambitious N54.9 trillion budget. This trend of deficit financing is projected to continue into the 2026 fiscal year, indicating a sustained dependency on external and internal loans to maintain growth and critical public spending.
The proposed 2026 budget outlines a significant deficit of N23.85 trillion, which is equivalent to 4.28 per cent of the country’s GDP. This substantial figure raises questions about fiscal sustainability and the long-term implications for national debt. Even more alarming is the allocation for debt servicing, which is expected to consume an astounding N15.52 trillion. This sum represents about 26.7 per cent of the total expenditure, positioning debt servicing as one of the largest single spending items in the budget and exceeding allocations to several vital sectors. This situation severely constrains the government’s ability to invest in critical infrastructure, education, healthcare, and other areas crucial for national development and citizen welfare.
There is an expectation that the new tax reforms, slated to come into effect in 2026, may offer some abatement to the degree of deficit financing. However, these reforms are not without their own anxieties. Despite government assurances, there are palpable fears among the populace that the new tax measures could exacerbate the already challenging economic circumstances for many Nigerians, potentially increasing the burden on households and businesses.
It is imperative for the administration to address these fears proactively and demonstrate unwavering commitment to prudent financial management. The effective and transparent handling of the nation’s finances, characterized by diligence, integrity, and a genuine concern for the citizenry, is paramount. Nigerians rightfully expect and deserve tangible value for the substantial amounts outlined and allocated in budget documents. The path to true economic stability and prosperity lies not just in improving macroeconomic figures, but in ensuring these benefits are felt by every citizen.
