In a significant move impacting Nigeria’s fiscal planning, the Nigerian Senate has officially granted a second extension to the capital component of the 2024 national budget, moving the new deadline for its full implementation to December 31, 2025.
This decision was reached during the Senate plenary session on Tuesday, after an amendment bill to the Appropriation Act was introduced and swiftly passed. The amendment aimed to adjust the timeline for utilizing the capital allocations approved in the 2024 fiscal budget.
The announcement of the Senate’s resolution was made by Deputy Senate President, Senator Barau Jibrin, following the adoption of a detailed report from the Senate Committee on Supply.
Why the 2024 Capital Budget Was Extended Again
The motion advocating for this extension was championed by Senator Solomon Adeola, the Chairman of the Senate Committee on Appropriation and a representative of Ogun West under the All Progressives Congress (APC). According to Senator Adeola, this second extension is crucial to prevent the abandonment of critical national projects that are yet to be completed due to timing constraints.
“We must not allow these important national projects to be abandoned due to time constraints. Extending the implementation period will ensure value for money and improved service delivery,”
— Senator Solomon Adeola
His remarks emphasized the need for continuity and accountability in national development, stressing that delays caused by rigid fiscal calendars could lead to wasted investments and stalled progress.
This Marks the Second Official Extension for the 2024 Budget
As reported by LMSINT MEDIA, this is the second official extension granted by the National Assembly for the 2024 capital expenditure budget. The first extension occurred in December 2024, when President Bola Ahmed Tinubu formally requested that the budget deadline be moved from December 31, 2024, to June 30, 2025.
With this new development, Nigeria is now operating two concurrent capital budgets—one for 2024 and another for 2025. This overlap raises serious questions about potential funding challenges and budget execution efficiency, especially given the country’s tight revenue environment and external debt commitments.
Calls for Transparency and Accountability in Contractor Payments
During the proceedings, Senator Abdul Ahmed Ningi, who represents Bauchi Central Senatorial District, raised a crucial concern regarding the non-payment of contractors since the start of 2024. He called on the Senate to initiate an investigation to address why many government contractors have not received their due payments despite ongoing budget provisions.
The senator’s call further underscores the necessity for strong financial oversight and budget transparency, especially as Nigeria navigates dual capital expenditures. Unpaid contractors can lead to abandoned projects and undermine public trust in government financial management.
Implications of Running Two Concurrent Capital Budgets
Running parallel capital budgets for two fiscal years presents both opportunities and challenges. On one hand, it allows for greater flexibility in completing ongoing projects, but on the other, it demands effective financial discipline and oversight to avoid duplication, waste, or mismanagement.
Stakeholders in the public finance and economic sectors will be watching closely to see how the Federal Government handles disbursement, contractor accountability, and project timelines as 2025 unfolds.
For more updates on Nigeria’s national budgeting, procurement, and fiscal management strategies, follow updates from the Federal Ministry of Finance and Budget Office of the Federation
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