morgANABLE politics/Governance
Nigeria’s budget system has faced recurring challenges since 2024, with overlapping fiscal cycles complicating implementation and reducing the effectiveness of public spending.
KaNo —
The Federal Government has directed all ministries, departments and agencies to submit their personnel cost proposals for the 2027 fiscal year on or before September 18, 2026, as part of plans to present the national budget to the National Assembly in September.
The move is aimed at restoring a January–December budget cycle and addressing persistent implementation challenges that have led to overlapping fiscal years in recent times.
Details of the directive were contained in the 2027 Personnel Costs Budget Call Circular issued by the Budget Office of the Federation and dated September 4, 2026.
The document, signed by the Director-General of the Budget Office, Tanimu Yakubu, outlined the guidelines for MDAs in preparing and submitting their budget proposals.
According to the circular, the draft 2027–2029 Medium-Term Expenditure Framework and Fiscal Strategy Paper had already been concluded as far back as July 2026, in compliance with the Fiscal Responsibility Act, 2007, to enable early submission of the 2027 budget.
“As you are aware, the 2027–2029 draft Medium-Term Expenditure Framework and Fiscal Strategy Paper was concluded by July 2026 in line with the Fiscal Responsibility Act 2007 to facilitate the submission of 2027 Budget to the National Assembly by September 2026,” the document stated.
Although the Federal Government did not specify an exact date for the presentation, the timeline suggests that the budget proposal could be transmitted to lawmakers about three months before the commencement of the 2027 fiscal year.
FG Moves To Sustain Early Budget Cycle
This represents a continuation of efforts by the government to sustain an early budget cycle, which had been disrupted in recent years due to delays in preparation, approval and implementation processes.
Nigeria’s budget system has faced recurring challenges since 2024, with overlapping fiscal cycles complicating implementation and reducing the effectiveness of public spending.
Analysts say delays in budget passage often lead to late releases of funds, thereby affecting capital project execution and overall economic planning.
To address some of these issues, the Federal Government had earlier identified discrepancies in macroeconomic assumptions among key agencies as a major factor undermining budget performance.
These inconsistencies, particularly in projections for crude oil prices and production levels, exchange rates, inflation and non-oil revenues, have contributed to gaps between budget estimates and actual fiscal outcomes.
EMT Set Up Committee To Harmonize Macroeconomic Assumptions
In response, the Economic Management Team set up a committee to harmonise key macroeconomic assumptions used for budgeting and economic planning.
The decision followed a joint budget retreat and technical validation workshop involving relevant government agencies.
Ahead of the submission deadline, the Budget Office directed MDAs to submit both hard and soft copies of their personnel budget proposals, along with detailed supporting information, not later than 4 p.m. on Friday, September 18, 2026.
The circular also introduced stricter documentation requirements in a bid to enhance transparency and accountability in the budgeting process.
Notably, MDAs are now required to submit copies of the laws establishing them alongside their budget proposals.
The Budget Office warned that failure to comply with this directive could result in the rejection of such submissions.
“To further strengthen the budget preparation process and mitigate against any entry of unestablished agencies in the FGN Budget, it has become compulsory for MDAs to submit budget proposals along with their respective Establishment Acts, as failure to do so may lead to rejection,” the circular stated.
New Requirement Follows Discovery Of Fake Agency
The new requirement follows the controversy surrounding the inclusion of a fictitious agency, the Presidential Foreign Intervention Promotion Council, in the 2026 budget.
The agency was reportedly allocated about N1.3 billion despite lacking legal backing, sparking widespread criticism and raising concerns about lapses in the budget preparation process.
In response, the House of Representatives launched an investigation into the matter and initiated steps to verify all agencies listed in recent federal budgets against the laws establishing them.
President Bola Tinubu also ordered a forensic probe into the circumstances that led to the inclusion of the questionable agency, directing relevant authorities to strengthen internal controls across government institutions.
Subsequent investigations by the Independent Corrupt Practices and Other Related Offences Commission uncovered further irregularities linked to the scandal.
Briefing State House correspondents after presenting an interim report to the President at the Presidential Villa in Abuja, ICPC Chairman, Dr Musa Aliyu, disclosed that the individual behind the fake agency, Adeniyi Adeyemi, was never appointed by the Federal Government.
According to the commission, the Presidential Foreign Intervention Promotion Council had no legal basis, as it was neither established by an Act of the National Assembly nor by an executive order.
The ICPC recommended the prosecution of Adeyemi and disciplinary action against public officials suspected to have facilitated the operation of the fake agency. It also called for comprehensive reforms to strengthen oversight mechanisms within government institutions.
The commission further revealed that officials from several key government offices, including the Office of the Secretary to the Government of the Federation, Office of the Head of the Civil Service of the Federation, Office of the Accountant-General of the Federation, Budget Office of the Federation and the National Information Technology Development Agency, were identified as collaborators in the scheme.
In addition, the ICPC uncovered another questionable entity, the National Brands Development and Made-in-Nigeria Special Project Office, which was allegedly operating illegally within the premises of the Office of the Secretary to the Government of the Federation without proper authorisation.
Following the revelations, President Tinubu ordered the immediate arrest of Nwabueze and approved the suspension of three permanent secretaries M.S. Danjuma, Nadungu Gagare and Richard P. Pheelangwah ,pending the outcome of investigations.
Reacting to the development, Amnesty International Nigeria described the incident as a reflection of deep-rooted institutional weaknesses in the country’s governance framework.
The Country Director of the organisation, Isa Sanusi, said the scandal highlighted systemic failures and called for an independent inquiry to establish accountability.
“The incident of the fake government agency is an indictment of the Nigerian government. It is a practical indication of the rampant corruption within and around government agencies. The fact that such a scam can happen is an indication of how weak government institutions are,” Sanusi said.
As the Federal Government pushes to meet its September deadline for the 2027 budget submission, stakeholders say the effectiveness of the new measures will depend on strict compliance by MDAs and sustained efforts to strengthen transparency, coordination and accountability in the budgeting process.
