BudgIT, a leading civic-tech organisation promoting transparency and accountability in Nigeria’s public finance, has noted the Federal Government’s decision, through the Federal Ministry of Budget and Economic Planning, to defer the implementation of 70% of capital projects initially appropriated in the 2025 fiscal year to 2026.
From our analysis, while this development is not entirely surprising, we hold cautious reservations about the implications of this decision. The deferment suggests that the Federal Government intends to limit the number of capital projects under implementation, to use available funds more efficiently, prioritise critical projects, and reduce the long-standing problem of abandoned projects. In this sense, the move appears to be an attempt to retain the 2025 capital projects—many of which are based on existing economic plans and strategies—rather than introduce an entirely new set of projects in the next fiscal year.
We view this as an effort by the Federal Government to “restructure” the sequencing of capital project implementation. Rather than rolling out a fresh budget filled with new capital projects, the government appears to be attempting a reset by carrying forward existing projects and improving implementation discipline. This approach, if properly managed, could help salvage a challenging fiscal situation and strengthen budget credibility.
Recall that BudgIT has consistently raised concerns about Nigeria’s budgeting process, particularly the government’s failure to adhere to the approved budget calendar and its practice of running multiple fiscal programmes concurrently. These practices create significant room for waste, inefficiency, and abuse of public resources. We have maintained that budget timelines must be treated as sacrosanct and that unfinished but still relevant projects should be consolidated through a supplementary budget passed within the same fiscal year, rather than endlessly rolled over.
Consequently, the continued inclusion of numerous uncoordinated and low-priority projects has bloated federal capital expenditure and increased public debt, often without clear developmental value. This pattern weakens the impact of capital investment, as spending decisions increasingly appear driven by project insertions rather than sound planning, prioritisation, and fiscal discipline. This is compounded by the fact that the federal government does not publish disaggregated reports on capital expenditure implementation. So, citizens are at a loss in knowing precisely what has or has not been implemented.
This challenge is further illustrated by developments during the 2024 fiscal year, in which the Federal Government extended the implementation of capital expenditure components of both the 2024 Appropriation Act and the 2024 supplementary Appropriation Act into mid-2025, and subsequently to December 2025. As a result, although the 2025 Appropriation Act was duly passed and assented to, it appears that only its recurrent components—such as personnel and overhead costs—were implemented in 2025. This is further evidenced by the absence of federal budget implementation reports for the 2025 period and official statements indicating that revenues from the 2025 fiscal year were used to fund the implementation of the 2024 budget.
Against this background, it remains unclear whether the 2024 fiscal year has been formally closed. The recently published Q4 2024 federal budget implementation report is explicitly described as “provisional,” raising concerns about proper fiscal closure. Formal closure of fiscal accounts is essential, as failure to do so undermines financial reporting, fiscal transparency, and consolidation standards.
In light of these, BudgIT stresses that this decision to defer capital project implementation must be robustly defended during the upcoming budget defence sessions at the National Assembly. The Executive arm of government must clearly demonstrate to the Legislature that this action is necessary to restore order to Nigeria’s fiscal framework and to end the damaging practice of implementing multiple budgets concurrently. By the time the annual Appropriation Act is passed by the National Assembly and transmitted for presidential assent, it is often heavily bloated with additional projects. While the National Assembly’s power to increase or decrease the budget is constitutionally recognised, BudgIT has long argued that this power has been widely abused, often disregarding fiscal planning and national development priorities.
Commenting, BudgIT’s Deputy Country Director, Vahyala Kwaga, underscored the need for discipline and clarity in implementing the deferment. “Deferring 70 per cent of capital projects is neither a solution nor a setback on its own. What matters is whether this decision marks a clear break from the cycle of bloated budgets, overlapping fiscal years, and weak project implementation. Without strict adherence to budget timelines, proper fiscal closure, and transparent payment processes, the risk is that we simply postpone inefficiencies rather than resolve them,” Kwaga said.
In addition, we urge the Federal Government to fully adhere to its “Bottom-Up Cash Plan” as outlined by the Federal Ministry of Finance. This approach—where payments are made directly to verified contractors rather than routed through MDAs—has the potential to improve efficiency and accountability in capital project implementation. The government must ensure strict compliance with payment protocols, contractor verification processes, and timely disbursement of funds.
To this end, we call on the Ministry of Finance, the Ministry of Budget and Economic Planning, the Budget Office of the Federation, the Bureau of Public Procurement, relevant MDAs, and the President of the Federal Republic of Nigeria, Bola Ahmed Tinubu, to uphold the principles of transparency, legal compliance, and accountability in the management of public funds and public projects. We also encourage citizens, civil society, the private sector, and the media to actively support and scrutinise capital expenditure implementation, as the benefits of effective public spending ultimately accrue to all Nigerians.
