Nigeria’s fiscal policy direction may be shaky following ‘owngoal’ by the president Bola Tinubu’s admimistration not meeting its self-imposed March 31 deadline to end overlapping fiscal cycles.
Analysts say despite passing of the 2026 budget, fiscal challenges persist, noting that overlapping budgets is a recipe for fiscal disaster.
Specifically the Senate, passed the new ₦68.323 trillion budget for the 2026 fiscal year, approving an increase from the initial ₦58.47 trillion proposed by President Bola Tinubu.
The upward revision of over ₦9.09 trillion followed a fresh request by the President to accommodate legacy commitments, particularly in the transportation and health sectors, as well as additional provisions, including funding for the judiciary.
Tinubu had announced in December that all existing budgets would be concluded by March 31, 2026, in a bid to address inefficiencies associated with running multiple budgets concurrently.
Curiously, Senate also approved an extension of the capital component of the 2025 budget, shifting its implementation deadline from March 31 to June 30, 2026, preserving the rollover system the presidency wanted to eliminate, raising questions about the coherence and transparency of the fiscal policy direction.
Friday Ameh, Lagos based analyst, says beside putting the fiscal policy on shaky grounds and possibly at variance with the monetary policy direction, the extension of the 2025 budget may delay the implementation of the 2026 budget, affecting project execution and economic growth.
Besides, Ameh says overlapping fiscal cycles creates uncertainty, making it challenging for investors and businesses to plan and invest, while at the same time, increasing the debt burden, which they claim is threatening to stall growth and development
Another analyst says the practice could lead to inefficient resource allocation, as funds may be diverted from priority projects.
The analysts stated that operating under multiple budgets creates uncertainty for infrastructure planning, social service delivery, and security funding, while also sending mixed signals to investors monitoring fiscal discipline.
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The mixed policy signals have raised concerns among economists and fiscal experts. While the presidency had earlier directed MDAs to conclude all rolled-over spending by the March deadline, other officials adopted a more flexible approach.
Doris Uzoka-Anite, now minister of state for budget and planning, had previously, while serving as minister of state for finance, 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—effectively maintaining a rollover system within the transition plan.
Nigerians have continued to express worry about what they term the ‘marriage of convenience’ between the executive and the legislature that has allegedly rendered the later impotent and ‘mere rubber stamp’ of the executive
Indeed, Godwin Akpabio, Senate President had indicated the backing of the President’s directive, promising that lawmakers would align with the March 31 timeline.
However, metrobusinessnews.com.
gathered that delays in legislative processes, including prolonged budget defence sessions and scheduling setbacks, pushed the passage of the 2026 budget beyond the deadline. The Appropriation Committee faced repeated disruptions, including the unavailability of its chairman, Solomon Adeola Olamilekan, who has been occupied with political campaigns in Ogun State.
Consequently, the analysts warn that unless systemic reforms are implemented, future budget cycles could continue to experience delays, undermining both public service delivery and investor confidence.
Analysts concerns are further compounded by weak capital releases as data from the Budget Office shows that out of N18.53 trillion appropriated for capital expenditure in 2025, only about N834.8 billion was released between January and July, representing just 7.72 percent of the expected pro rata benchmark.
Yusuf Maitama Tuggar, the immediate past foreign affairs minister, in a farewell message to staff of the ministry on March 30, 2026, said budgetary limitations are the major constraints facing foreign missions, while comparing capital available to the Ministry with that that of the NYSC.
Other ministries, like the Interior, had complained and alleged zero capital disbursement, amid growing revenue receipts to the nation’s coffers, ocassioned by the subsidy withdrawal