The House of Representatives has authorized extending the implementation of the capital component of the 2025 budget to March 31, 2026.
This followed the passage of the 2024 and 2025 Appropriation (repeal and re-enactment) Bills.
Last week, President Bola Tinubu sent bills to the national assembly, stating that they would allow for the complete transfer of capital implementation funds to all ministries, departments, and agencies (MDAs).
The first bill sought to repeal the 2024 Appropriation Act of N35,055,536,770,218 and re-enact by authorising the issuance from the consolidated revenue fund of the federation of the total sum of N43,561,041,744,507, comprising N1,742,786.788,150 for statutory transfers, N8,270,960,606,831 for debt service, N11,268,513,380,853 for recurrent (non-debt) expenditure, and N22,278,780,968,673 for capital expenditure/development fund contributions for the year ending December 31, 2025.
National Assembly, The second bill proposed repealing the 2025 Appropriation Act of N54,990,165,355,396 and re-enacting it by authorising the issuance from the consolidated revenue fund of the federation of the total sum of N48,316,242,591,785, comprising N3,645,761,358,925 for statutory transfers, N14,317,142,689,548 for debt service, N13,588,009,682,673 for recurrent (non-debt) expenditure, and N16,765,328,860,640 for capital expenditure/development fund contribution for the year ending March 31, 2026.
During Tuesday’s plenary, the lower legislative chamber discussed and approved the president’s proposal in response to a report by Abubakar Bichi, head of the appropriation committee.
Bichi informed the lawmakers that the committee had met with the president’s economic team, which included Wale Edun, minister of finance; Atiku Bagudu, minister of budget and economic planning; and Tanimu Yakubu, director-general of the federation’s budget office, to gain insight into the justification for repealing and enacting the 2024 and 2025 Appropriations Acts.
Bichi stated that the repeal and re-enactment of the 2025 budget will strike a balance between responsiveness and budgetary responsibility, ensuring that urgent spending do not weaken legislative supervision or compromise fiscal freedom.
He explained that due to financing constraints, the capital allocation of N16.76 trillion was lowered and carried over to the fiscal year 2026.
“The initiative is expected to make the budget effective, reducing the expenditure of the governance, giving the anticipated increase in revenue-generating properties in the next fiscal year,” he said.
Bichi noted that the practice of rolling budget cycles, such as extending the execution of the 2024 Appropriation Act well into 2025 while the 2025 budget is still in effect, undermines budget clarity and fiscal discipline.
After the report was presented, the house went over the bills clause by clause, approved them, and sent them to third reading.
The green chamber then adjourned plenary until January 27.
