FISCAL RESET: NASS realigns N91tn in funding, extends 2025 budget to March 2026

In a sweeping legislative move to stabilize Nigeria’s economy, the National Assembly has approved a major overhaul of the nation’s financial roadmap.

On Tuesday, lawmakers passed a revised N43.5 trillion 2024 Appropriation Act and a restructured N48.3 trillion 2025 budget framework, while officially extending the 2025 fiscal year through to March 31, 2026.

This fiscal “reset” followed an intense review of bills transmitted by President Bola Ahmed Tinubu, aimed at synchronizing government spending with current revenue realities and ending the chaotic era of overlapping budget cycles.

The legislative exercise involved repealing previous acts to accommodate new economic data. Senator Solomon Adeola, Chairman of the Senate Committee on Appropriations, led the presentation of the report, noting that the move ensures debt-related spending does not compromise fiscal prudence.

Explaining the adjustments, Adeola stated: “The 2024 Appropriation Act was repealed from the original N35.005 trillion and re-enacted with an aggregate expenditure of N43.561tn, with details covering statutory transfers, debt servicing, recurrent and capital expenditure fully captured in the committee’s report.”

“On the 2025 fiscal year, Adeola disclosed that the earlier N54.99tn Appropriation Act was repealed and replaced with a revised total expenditure of N48.316tn, noting that part of the capital expenditure was rolled over into the 2026 fiscal year due to funding constraints highlighted during the presidential budget presentation.”

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Ending “Budget Overlap”

A significant portion of the debate centered on the inefficiency of running multiple budgets simultaneously. Senator Adeola issued a stern warning against the practice, which has historically clouded transparency.

“Extending the lifespan of one budget while another is already in force undermines fiscal discipline, transparency and accountability,” Adeola stressed.

To address this, the committee recommended the extension of the 2025 implementation to March 31, 2026, a move that the Senate eventually passed after an exhaustive debate.

The Executive Vision: Efficiency Over Ambition

President Tinubu, in his communication to the legislature, acknowledged that the 2024 budget had suffered from “persistent weaknesses” in capital execution. He argued that the new framework is a move toward a more “credible” performance.

The President noted: “The revised framework reflects a more realistic capital implementation benchmark of 30 per cent.”

He further explained that the extension was a practical necessity for government agencies: “Extending the lifespan of the 2025 budget to March 31, 2026, would allow Ministries, Departments and Agencies adequate time to access and utilise the targeted 30 per cent capital releases.”

Simultaneously, the House of Representatives, presided over by Speaker Tajudeen Abbas, adopted the same figures. A detailed breakdown of the revised 2024 N43.56tn budget includes:

– N1.74tn: Statutory Transfers
– N8.27tn: Debt Servicing
– N11.26tn: Recurrent (Non-debt) Expenditure
– N22.27tn: Capital Expenditure

For the 2025 N48.31tn budget, the allocation is as follows:

– N3.64tn: Statutory Transfers
– N14.31tn: Debt Service
– N13.58tn: Recurrent (Non-debt) Expenditure
– N16.76tn: Capital Expenditure

This legislative intervention represents a broader attempt to fix structural flaws. As President Tinubu concluded, the goal is to end the practice of multiple budgets to “improve planning, enhance implementation, and strengthen transparency and accountability in public expenditure.”

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