In a major fiscal adjustment aimed at addressing revenue shortfalls, weak capital execution, and overlapping budget cycles, Nigeria’s National Assembly on Tuesday approved a revised N43.5tn 2024 Appropriation Act and a reworked N48.3tn 2025 budget framework, extending the 2025 fiscal year to March 31, 2026.
The approval followed marathon plenary sessions in both chambers, culminating in the passage of the Appropriation Act (Repeal and Re-enactment) Bills transmitted by President Bola Ahmed Tinubu last Friday.
At the Senate, the revised budgets were passed after adopting a consolidated report from the Committee on Appropriations, presented by its chairman, Senator Solomon Adeola (Ogun West). The exercise was designed to align Nigeria’s budget architecture with current fiscal realities, address implementation gaps, and restore discipline to the budgeting process.
The 2024 Appropriation Act was repealed from the original N35.005tn and re-enacted with total expenditure of N43.561tn, including N1.74tn for statutory transfers, N8.27tn for debt servicing, N11.26tn for recurrent expenditure, and N22.27tn for capital and development contributions. For 2025, the earlier N54.99tn budget was revised to N48.316tn, with N3.64tn for statutory transfers, N14.31tn for debt service, N13.58tn for recurrent expenditure, and N16.76tn for capital spending.
Adeola explained that N8.5tn was added to the 2024 capital component for security, humanitarian, and economic interventions, while N6.674tn from the 2025 capital allocation was deferred to 2026 to enhance implementation effectiveness. He warned against running multiple budgets concurrently, saying it undermines fiscal discipline and transparency.
President Tinubu noted the revisions were necessary to accommodate previously omitted items and adjust capital targets in line with execution capacity and revenue realities. He said the 30 per cent capital implementation benchmark and extension of the 2025 fiscal year would allow ministries, departments, and agencies adequate time to utilise allocated funds, improving infrastructure delivery and development outcomes.
The president added that these measures are part of a broader fiscal reform agenda aimed at ending overlapping budgets, enhancing planning, and ensuring better coordination of government programmes for improved value for Nigerians.
Babatunde Akinsola ✔
Godwin Okafor is the Publisher & CEO of Naija247news Media Group LLC, an independent investigative news platform delivering accurate, data-driven reporting on Nigerian and global politics, economy, finance, and business. Founded in October 2010, Naija247news specializes in developmental journalism, providing timely insights and analysis to readers across Nigeria and the diaspora.
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