The federal government’s proposal to operate two separate federal budget cycles simultaneously in 2026 has somewhat exacerbated the dissonance in managing the country’s public finances. The trend continued in 2025, when the capital component of the 2024 budget, which should have ended in December 2024, was extended twice, first to June 2025 and then to December 2025. The implication is that if the President’s request to extend and re-enact the 2025 budget is approved while the 2026 budget is also signed into law, Nigeria will effectively be operating two budget cycles simultaneously. For the 2025 budget, although the government borrowed about N14.1 trillion, total inflows remained insufficient to fully fund the N54.9 trillion budget. Also, the 2026 budget indicates the government’s continued reliance on deficit financing to sustain growth and critical public spending.

Source: The Guardian January 07, 2026 06:36 UTC