President Bola Tinubu has announced that Nigeria will transition fully to a single annual budget cycle starting from April 2026.
The declaration was made on Friday during the presentation of the 2026 Appropriation Bill to a joint session of the National Assembly.
The move aims to end overlapping budgets that have complicated planning, slowed execution, and weakened accountability.
What the president said
He said overlapping budgets have distorted planning, delayed capital releases, and reduced transparency across MDAs.
“We are terminating the habit of running three budgets in one inflow. By March 31, 2026, all capital liabilities from previous years will be fully funded and closed. From April, Nigeria operates on a single budget, backed by a single revenue cycle. No overlaps, no excuses, no rollovers culture,” he said.
Tinubu said the decision is part of a broader fiscal reform agenda designed to reset Nigeria’s budget calendar and strengthen public financial management.
He said the extension to March 31, 2026, would allow time to clear outstanding capital obligations.
According to him, once these liabilities are fully settled, the country will be positioned to return to a cleaner, single-cycle budget framework.
The President said the reform builds on ongoing measures such as budget revisions, capital target changes, and improved revenue mobilisation.
What you should know
In the letter, the President explained that the bills seek to repeal the 2024 Appropriation Act of N35.06 trillion and re-enact it with a revised total expenditure of N43.56 trillion.
- He said the revised 2024 budget authorises N1.74 trillion for statutory transfers, N8.27 trillion for debt service, N11.27 trillion for recurrent spending, and N22.28 trillion for capital projects, up to 31 December 2025.
- Tinubu proposed cutting the 2025 budget from N54.99 trillion to N48.32 trillion, extending it to 31 March 2026.
- In June, the Senate approved a second extension of the implementation period for the 2024 capital component of the national budget, from June 30, 2025, to December 31, 2025.
- The January-to-December budget implementation cycle, a hallmark of fiscal discipline, was established during the tenure of the 9th National Assembly.
On December 18, 2024, the National Assembly approved extending the 2024 budget’s lifespan to June 2025.
Last week, the federal government directed Ministries, Departments and Agencies (MDAs) to carry over 70% of their approved 2025 capital allocations to 2026.
