10th N’Assembly: Turning Repeated Budget Extension into Norm

The National Assembly has extended the 2025 capital budget implementation for the fourth time, sparking questions about Nigeria's fiscal planning and whether budget extensions are becoming a norm. During the Senate's deliberations, several members argued that extending the budget was necessary to prevent the abandonment of ongoing projects and ensure that funds are properly utilized.

However, this raises the broader question of why Nigeria repeatedly faces budget implementation delays. Senate Leader Opeyemi Bamidele emphasized that capital projects were at various stages of implementation and that released funds remained unutilized. He highlighted the complexity of capital expenditure, involving procurement, contract award, mobilization, execution, certification, and payment, all requiring coordination.

Senators Bamidele and Akpabio warned against abandoning projects that were already partially completed or had contractors partially paid, as it could lead to waste. However, the solution might lie in reforming the centralized payment system, which is a critical link in the budget implementation process. The current centralized system could be cumbersome, leading to delays.

The solution may lie in a more decentralized, technology-driven, and accountable payment framework, preserving central oversight while preventing unnecessary delays.