Reps okays extension of 2025 capital budget implementation to March 2026

The House of Representatives has approved the extension of the implementation of the capital component of the 2025 budget to March 31, 2026.

The approval followed the passage of the 2024 and 2025 Appropriation (Repeal and Re-enactment) Bills by the lawmakers.

The move came after President Bola Tinubu transmitted the bills to the National Assembly last week, explaining that the extension would allow for the full release of capital funds to 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.

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.

The lower legislative chamber considered and passed the president’s request during Tuesday’s plenary following the adoption of a report by Abubakar Bichi, chairman of the committee on appropriation.

Bichi told the lawmakers that the committee met with the economy team of the president, comprising Wale Edun, minister of finance; Atiku Bagudu, minister of budget and economic planning; and Tanimu Yakubu, director-general of the budget office of the federation, to obtain insight into the justification for the repeal and enactment of the 2024 and 2025 Appropriations Act.

Bichi said the repeal and re-enactment of the 2025 budget will balance responsiveness with fiscal responsibility, ensuring that urgent expenditures do not weaken legislative oversight or undermine fiscal freedoms.

He explained that the sum of N16.76 trillion was reduced from the capital allocation and rolled over to 2026 fiscal year due to funding constraints.

“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 admitted that the practice of rolling budget cycles, such as extending the implementation of the 2024 Appropriation Act deep into 2025 while the 2025 budget is in force, undermines budget clarity and weakens fiscal discipline.

After the report was presented, the house considered the bills clause by clause, approved them, and passed them for third reading.

The green chamber subsequently adjourned plenary until January 27.

Follow Very Nigerian WhatsApp Channel
For Verified Breaking News, Exclusive Reports, Trending Stories, And Real-time Updates.
CLICk HERE TO JOIN!