The extension effectively grants Ministries, Departments and Agencies (MDAs) an additional three months to execute ongoing capital projects and utilise funds appropriated under the 2025 fiscal framework.
KANo —
The House of Representatives on Monday approved a three-month extension for the implementation of the capital component of the 2025 Appropriation Act, shifting the deadline from June 30 to September 30, 2026, in a move aimed at allowing the Federal Government to complete ongoing projects captured in the budget.
The resolution followed the swift passage of a bill seeking to amend the Appropriation (Repeal and Enactment) Act, 2025.
The proposed legislation, titled “A Bill for an Act to Amend the Appropriation (Repeal and Enactment) Act, 2025 to extend the implementation of the capital aspect of the Appropriation Act, 2025 from 30 June 2026 to 30 September 2026 and for Related Matters,” was considered and passed during an emergency plenary session presided over by the Speaker of the House, Tajudeen Abbas.
In an unusual legislative procedure, the bill scaled first, second and third readings in a single sitting after lawmakers suspended relevant provisions of the House Standing Orders to fast-track its consideration.
The expedited process underscored the urgency attached to the matter by the leadership of the House.
Leading the debate, House Leader, Prof. Julius Ihonvbere, explained that the extension had become necessary due to the incomplete implementation of several capital projects contained in the 2025 budget.
According to him, allowing the current deadline to lapse without an extension would have serious implications for the country’s economic growth and development.
“It is very straightforward. Some aspects of the capital appropriation will not be fully implemented, if we do not extend the life of this particular law. It will have a very grave impact on the growth and development of the national economy,” Ihonvbere said during deliberations.
He clarified that the amendment does not seek to alter any provision of the budget itself but is solely intended to extend the validity period of the capital expenditure framework.
“The purpose essentially is to extend the lifespan. We are not touching any part of the law. It is simply extending the lifespan from June 30, 2026, to September 30, 2026″he said
“I urge my colleagues to approve this so that we can continue with the work of developing and growing our economy and country,” he added.
Speaker Abbas, in his remarks, noted that available records presented to the House indicated that implementation of the capital budget was still ongoing and required additional time for completion.
He stressed that granting the extension was in the national interest.
“As you are aware, the 2025 budget was extended to June 30. From the records we received from the Chairman, Appropriations, and other relevant quarters, it has yet to be fully implemented,” Abbas said.
“It is therefore in the best interest of this country and the National Assembly for us to extend the budget to September 30. This will enable the Federal Government fulfil its obligations under the 2025 budget,” he added.
Following its adoption at second reading, the House dissolved into the Committee of Supply, where lawmakers examined the bill clause-by-clause.
The committee approved all sections, including the explanatory memorandum and long title, before reporting back to plenary.
The recommendations were subsequently adopted, and the House again suspended its rules to allow the bill to pass third reading on the same day.
The extension effectively grants Ministries, Departments and Agencies (MDAs) an additional three months to execute ongoing capital projects and utilise funds appropriated under the 2025 fiscal framework.
Observers say the move reflects a recurring challenge in Nigeria’s budget cycle, where delays in procurement processes, revenue shortfalls, and administrative bottlenecks often hinder the timely execution of capital projects.
Capital expenditure is widely regarded as a critical driver of infrastructure development, economic expansion, and job creation.
However, Nigeria has historically struggled with the effective implementation of such projects, leading to frequent extensions of budget cycles.
Meanwhile, the House also announced changes in the leadership of some of its standing committees, following recent adjustments within the minority caucus.
The reshuffle saw Ali Madaki appointed as Chairman of the Committee on Special Duties, while Ali Isa was named Chairman of the Committee on Shipping Services.
In the same vein, Pascal Agbodike was appointed Chairman of the Committee on the Small and Medium Enterprises Development Agency of Nigeria, and Kelechi Nwogu was named Chairman of the Committee on Hydrological Services.
Speaker Abbas charged the newly appointed committee chairmen to assume their responsibilities immediately and leverage their legislative experience to advance the work of the House.
He emphasized the importance of effective committee leadership in strengthening legislative oversight and ensuring accountability across key sectors of the economy.
The appointments, according to the House leadership, form part of ongoing efforts to enhance committee operations and improve legislative efficiency.
The extension of the budget implementation period comes against the backdrop of growing concerns over Nigeria’s fiscal outlook.
The International Monetary Fund (IMF), in its latest Article IV consultation report released in October 2025, warned that the country faces significant fiscal risks and may exceed its deficit projections if urgent corrective measures are not taken.
The IMF attributed the potential fiscal slippage to a combination of declining oil prices, reduced production levels, and persistent challenges in executing capital expenditure.
It urged Nigerian authorities to recalibrate fiscal policies and align budget assumptions with prevailing economic realities.
According to the report, ensuring that savings from the removal of fuel subsidies accrue fully to government coffers could help maintain a neutral fiscal stance, with projected savings estimated at about two per cent of Gross Domestic Product (GDP).
However, the Fund cautioned that if these savings are not realised, particularly from the second half of 2025, and given that ongoing tax policy reforms are unlikely to yield substantial revenue gains in the short term, adjustments would have to come from the expenditure side.
The IMF recommended prioritising cuts in recurrent spending while safeguarding growth-enhancing investments, particularly in infrastructure and other capital projects.
It further warned that Nigeria’s fiscal deficit could rise to 4.7 per cent of GDP, significantly above the budgeted target, if corrective actions are not implemented.
Beyond revenue concerns, the IMF also highlighted longstanding issues with the execution of capital expenditure.
Despite ambitious spending plans, the report noted that Nigeria’s track record in delivering large-scale infrastructure projects remains weak, raising doubts about the feasibility of meeting capital expenditure targets.
However, they caution that without structural reforms to address inefficiencies in procurement, funding, and project management, such extensions may offer only temporary relief.
As the new September deadline approaches, attention will likely focus on whether the additional time translates into tangible progress on key infrastructure projects or merely prolongs existing bottlenecks in the system.
