The Federal Government has announced plans to transfer outstanding projects and expenditure commitments under the 2026 budget into the 2027 fiscal year as part of measures to end the practice of implementing multiple national budgets simultaneously.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday in Abuja during the launch of the October 2026 edition of the World Bank’s Nigeria Development Update.
The Senate and House of Representatives earlier approved the extension of the implementation of the capital component of the 2025 budget to December 31, 2026, giving Ministries, Departments and Agencies additional time to execute capital projects captured in the 2025 Appropriation Act.
It is the fourth extension of the budget’s capital implementation period.
Oyedele acknowledged weaknesses in the country’s budget preparation and implementation processes, particularly unrealistic revenue projections and the repeated extension of capital budgets beyond their original fiscal years.
He said the government was working with the Ministry of Budget and Economic Planning and the Budget Office of the Federation to introduce a more realistic budgeting framework from 2027.
“Whatever is left of 2026, we’re transferring into 2027, not running two budgets,” the minister said. “We acknowledge that we can do budget better. We shouldn’t be running multiple budgets at the same time. We shouldn’t have projections for revenue where the outcome is 40 per cent or 60 per cent. We acknowledge that.”
The minister explained that the reforms would address the accumulation of outstanding expenditure commitments across successive fiscal years, which has complicated budget implementation and weakened the credibility of government spending plans.
He noted that the 2025 capital budget had already been extended to December 2026, while legislative measures were expected to facilitate the clearance of outstanding obligations under previous budgets.
According to him, the government intends to resolve the remaining 2024 budget commitments and address outstanding expenditure under the 2025 and 2026 budgets before adopting a more streamlined approach.
Oyedele said future revenue and expenditure projections would be based on actual fiscal performance rather than assumptions carried forward from previous budgets.
The minister assured Nigerians that the changes would become evident in the preparation and implementation of the 2027 budget.
“What I’m saying to the Nigerian people is that you will see the difference from next year,” he stated.
On the timeline for presenting the 2027 Appropriation Bill to the National Assembly, Oyedele said the government intended to submit the proposal before the commencement of the new fiscal year but could not guarantee the legislative timetable.
Beyond budget reforms, Oyedele said the government’s fiscal strategy would prioritise human development, infrastructure and measures to stimulate private investment.
He explained that the administration’s tax reforms were designed to expand economic activity and increase the number of productive taxpayers rather than impose additional taxes on existing businesses and households. “We need more and bigger taxpayers, not more new or higher taxes,” he said.
The minister argued that stronger economic growth would improve government revenue while creating opportunities for employment and higher incomes.
He also maintained that Nigeria’s economic reforms had strengthened macroeconomic stability, although their benefits had yet to translate fully into improvements in household welfare. “Economic stability is not the destination for us. It’s the foundation,” he said.
He expressed confidence that Nigeria’s economic growth would exceed the World Bank’s revised projection of 4.3 per cent in 2026, while stressing the importance of creating better-paying jobs.
Oyedele added that the Federal Government would strengthen coordination with states and monetary authorities to address inflation and improve public service delivery.
