ABUJA, Nigeria — The House of Representatives has approved the extension of the implementation of the capital component of the 2025 budget from June 30 to September 30, following a similar move by the Senate last week.
The approval was granted during plenary on Monday, after a motion moved by Julius Ihonvbere, the majority leader. The extension provides an additional three months for ministries, departments, and agencies (MDAs) to execute capital projects that were funded in the 5.48 trillion naira budget passed by the National Assembly and assented to by President Bola Tinubu in January 2025.
Ihonvbere, in his lead debate, argued that the extension was necessary due to a combination of factors that hindered the pace of project implementation. He cited the late release of budgeted funds by the Ministry of Finance, delays in contract procurement and award processes, and the lingering effects of the Middle East war, which disrupted global supply chains and slowed the importation of critical equipment and materials.
The majority leader further explained that many MDAs only received their capital budget allocations late in the fiscal year, leaving insufficient time to complete procurement processes, award contracts, and mobilize contractors before the original June 30 deadline. Without an extension, he warned, numerous projects would be abandoned, and the funds would revert to the treasury, wasting the development opportunities the budget was designed to create.
The motion received overwhelming support from lawmakers across party lines. Several members who contributed to the debate acknowledged that while the extension was not ideal, it was a pragmatic response to the realities of budget implementation in Nigeria. They noted that similar extensions have been granted in previous fiscal years, including the 2024 budget, which was also extended to allow for the completion of ongoing projects.
However, a minority of lawmakers expressed reservations about the recurring pattern of budget extensions. They argued that extending implementation deadlines has become a convenient excuse for poor planning, bureaucratic inefficiency, and lack of discipline in fiscal management. Some called for sanctions against MDAs and officials responsible for persistent delays, rather than routinely extending deadlines.
The Senate had earlier approved a similar extension for the 2025 capital budget, setting the stage for the two chambers of the National Assembly to harmonize their positions before transmitting the approval to the executive. President Tinubu is expected to sign the extension into effect once both chambers finalize the legislative process.
The extension applies only to the capital component of the budget, which funds infrastructure projects such as road construction, bridge rehabilitation, power plant development, water supply schemes, and public building renovations. The recurrent component, which covers salaries, overheads, and debt servicing, is not affected by the extension and remains on its original implementation schedule.
Budget analysts have noted that the extension reflects deeper structural challenges in Nigeria’s budget cycle. Despite the adoption of a January-to-December fiscal year in 2024, replacing the previous May-to-June cycle, the government has continued to face difficulties in achieving early passage and timely implementation of the budget. The 2025 budget was passed by the National Assembly in January and signed by the President on January 28, yet implementation delays persisted.
The Minister of Budget and Economic Planning, Atiku Bagudu, had earlier hinted at the possibility of an extension when he appeared before the National Assembly to defend the ministry’s performance. He acknowledged that global disruptions, including the Middle East conflict and its impact on shipping routes and material costs, had affected project timelines across several MDAs.
Civil society organizations monitoring budget implementation have expressed disappointment at the extension, describing it as a setback for fiscal discipline. They argue that the government should focus on addressing the root causes of delays, including timely release of funds, efficient procurement systems, and accountability for underperforming MDAs.
As the September 30 deadline approaches, attention will now turn to whether MDAs can utilize the additional three months effectively. For now, the National Assembly has granted the executive a reprieve, but the underlying issues of budget implementation remain unresolved.
