Tinubu misses March deadline as Nigeria retains dual budget system 

By: Amarachi Okonkwo  

President Bola Tinubu has missed his self-imposed March 31, 2026 deadline to end Nigeria’s overlapping fiscal cycles, after lawmakers approved an extension of the 2025 capital budget effectively sustaining the rollover system the administration had pledged to eliminate. 

The development comes as the National Assembly passed the 2026 Appropriation Bill on Tuesday, setting total expenditure at N68.3 trillion, a significant increase of N9 trillion above the initial proposal submitted in December. 

However, in a parallel move, lawmakers also approved an amendment extending the implementation of the 2025 capital component to June 30, 2026, ensuring that Nigeria will continue operating two fiscal frameworks simultaneously for at least another quarter. 

Policy ambition meets institutional reality 

Tinubu had, in December 2025, directed all Ministries, Departments and Agencies (MDAs) to conclude spending under existing budgets by March 31, 2026, in a bid to eliminate inefficiencies linked to concurrent budget execution. 

The extension approved by the legislature now raises concerns about the coherence of the government’s fiscal policy direction, with analysts pointing to a disconnect between executive intent and institutional execution. 

While the presidency pushed for a hard stop to the rollover system, earlier signals from within the administration suggested a more flexible transition path. 

Doris Uzoka-Anite, now Minister of State for Budget and Planning, had previously directed MDAs to roll over 70 percent of their 2025 capital allocations into the 2026 fiscal framework leaving just 30 percent for implementation before the March deadline. 

This approach, analysts say, effectively preserved elements of the rollover structure the reform aimed to dismantle. 

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Legislative delays derail timeline 

Efforts to align the fiscal calendar were further undermined by delays within the National Assembly. 

Despite initial backing from Senate President Godswill Akpabio, the passage of the 2026 budget slipped beyond the March deadline due to prolonged budget defence sessions and scheduling disruptions. 

The Appropriation Committee also faced setbacks linked to the unavailability of its chairman, Solomon Adeola Olamilekan, who has been engaged in political activities in Ogun State. 

Officials at the Budget Office had earlier hinted at uncertainty surrounding the timeline. Spokesperson Olajuwon Afolabi acknowledged the difficulty in meeting the deadline, noting that the 2026 budget remained a “work in progress” at the time. 

Economists warn of credibility risks 

Fiscal experts say the missed deadline highlights deeper structural weaknesses in Nigeria’s budgeting framework. 

Economist Charles Sani noted that while policy direction can be set at the executive level, implementation depends on coordination across institutions. 

“The President has the power to make a pronouncement, but the implementation framework is the issue,” Sani said, adding that reforms require alignment with the legislature and key fiscal agencies. 

He also pointed to political incentives particularly in a pre-election environment that may slow reforms, as agencies and lawmakers seek to maximise spending under existing allocations. 

Budget inefficiencies persist 

Analysts warn that operating multiple budgets concurrently creates uncertainty for infrastructure planning, social services delivery, and security funding, while also sending mixed signals to investors monitoring fiscal discipline. 

Paul Alaje, chief economist at SPM Professionals, said the delayed passage reflects a fiscal calendar that remains fundamentally out of sync. 

“By March, the lifespan of 2025 should cease, but the process of going to the National Assembly is what we are still witnessing,” Alaje said. 

He added that procedural bottlenecks continue to undermine budget credibility, noting that conducting budget defence sessions as late as February and March makes timely passage unrealistic. 

Weak capital releases deepen concerns 

Concerns over fiscal effectiveness are further compounded by low capital releases. 

Data from the Budget Office shows that out of N18.53 trillion allocated for capital expenditure in 2025, only N834.8 billion. about 7.72 percent had been released between January and July. 

Alaje said the gap between appropriation and actual disbursement weakens the impact of fiscal policy. 

“Revenue sources must be clear, spending priorities must be defined, and transparency in the budgeting process must be strengthened,” he said. 

Government maintains implementation push 

Despite the challenges, the Office of the Accountant-General has maintained that implementation of the 2025 budget will continue. 

Shamseldeen Ogunjimi said the Government Integrated Financial Management Information System (GIFMIS) has been fully restored and that warrants have already been issued to MDAs. 

According to him, Treasury operations will commence implementation of the 30 percent component of the 2025 budget in the coming weeks. 

Analysts say the continued extension of capital spending underscores the difficulty of aligning fiscal policy ambition with execution capacity. 

Without deeper structural reforms particularly in legislative timelines, revenue clarity, and inter-agency coordination Nigeria’s budget cycle risks remaining chronically delayed. 

For investors and development partners, the persistence of overlapping budgets may continue to raise concerns about fiscal discipline, policy consistency, and the government’s ability to deliver on its reform agenda.