President Bola Tinubu and the National Assembly are facing renewed criticism following the second extension of the 2024 budget’s capital component implementation to December 31, 2025. The decision, which effectively allows the 2024 capital budget to run concurrently with the already-approved 2025 budget, has sparked concerns over poor fiscal discipline, weak budget execution, and growing economic uncertainty.
The Senate, during plenary on Tuesday, passed the amended appropriation bill following a recommendation from its Committee on Appropriation. The House of Representatives similarly advanced a corresponding bill, extending the capital component of the 2024 Appropriation Act beyond the previously approved June 30, 2025 deadline.
Deputy Senate President, Barau Jibrin, presided over the Senate session, while Senator Olamilekan Adeola, Chairman of the Senate Appropriation Committee, justified the move, stating it was necessary to complete ongoing capital projects and avoid the abandonment of key infrastructure across the country.
In the lower chamber, Deputy Majority Leader Ibrahim Halims presented the bill, with Speaker Tajudeen Abbas defending the extension as essential due to the underwhelming pace of project implementation under the 2024 budget.
This latest move comes after the 2024 budget’s capital component was initially extended from its statutory end date of December 2024 to June 2025. However, with the June deadline fast approaching and multiple projects still incomplete, the federal legislature granted another six-month extension.
The new extension means Nigeria is now implementing two annual budgets simultaneously — a scenario some economists and financial experts describe as unsustainable. A senior official at a federal ministry, speaking anonymously, revealed that the implementation of the 2025 national budget has yet to begin, nearly seven months into the fiscal year.
“All ministry operations are still being run on the 2024 budget,” the source said. “We’ve not received funds under the 2025 budget. Contractors haven’t been paid, and staff travel allowances for the year remain outstanding.”
Director of Press at the Office of the Accountant General of the Federation, Mr. Bawa Mokwa, confirmed that funds were recently released under the 2024 capital component. However, he refrained from providing a timeline for the commencement of the 2025 budget’s full implementation.
Economists have raised red flags about the implications of the extension. Dr. Ayo Teriba, CEO of Economic Associates, lamented that budget rollovers have become habitual, weakening fiscal credibility.
“If a 12-month budget now needs 24 months to implement, that’s a clear sign there’s no money to back those projects,” Teriba said. “This has happened with the 2023 budget and now 2024. By 2025, we may stop talking about it entirely. We need a new model for fiscal realism.”
Chief Economist at SPM Professionals, Paul Alaje, warned that overlapping budget cycles could result in increased money supply, exacerbating inflationary pressures. He stressed the need for clarity on how much of the 2024 budget remains unspent and how it will interact with the 2025 budget.
“We may be dealing with more money in circulation from two budget cycles. That has implications for inflation,” Alaje noted. “Even if marginal, this uncertainty affects predictability in the economy.”
Professor Akpan Ekpo, an economist and former Vice-Chancellor of the University of Uyo, described the situation as embarrassing. “Running two budgets concurrently signals failed forecasting. It affects job creation, economic growth, and overall development. Investors will also view this as a sign of weak fiscal governance.”
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, added that poor oil revenue performance and ambitious budget projections may have contributed to the shortfall in 2024 capital implementation. “It’s time to reform the budget process and align capital projects with realistic revenue estimates.”
Development economist Dr. Aliyu Ilias warned that running concurrent capital budgets could open the door to project duplication and fiscal opacity. “There’s a risk of double allocations and poor tracking. It’s a worrying precedent for Nigeria’s budgetary system,” he said.
He called for more transparency in communicating delays and stronger institutional mechanisms to prevent future extensions. “Capital projects often span years, but clear reporting is essential to avoid misinterpretation and ensure accountability.”
While many experts expressed concern, some industry stakeholders see a silver lining. Segun Kuti-George, National Vice President of the Nigerian Association of Small-Scale Industrialists, supported the extension, saying it allows the government to fulfil its infrastructure obligations.
“The continuation of 2024 capital projects into 2025 is positive. It allows for full execution of roads, transport, and energy projects, which can boost economic growth,” he said.
However, Kuti-George acknowledged the anomaly of running dual budgets and urged proper coordination to prevent resource mismanagement.
The extension has also sparked criticism of the Tinubu administration’s fiscal management. Many Nigerians on social media and in civil society spaces question why budget execution timelines are repeatedly missed, especially amid persistent economic hardship.
With inflation hovering around 30%, currency instability, and stalled capital projects, public trust in the budgeting process continues to erode.
As the 2025 fiscal year progresses, all eyes will be on whether the government can commence and execute its current year’s budget while completing lingering projects from 2024 — without creating further macroeconomic instability.