2027 Budget: Experts Warn Against New Appropriations Without Accounting for Previous Budgets

Economic experts have cautioned the Federal Government against preparing the 2027 Appropriation Bill without addressing the implementation issues of previous budgets, emphasizing the need for transparency in public spending and a complete account of outstanding commitments. While the preparation of the 2027 budget is essential, these experts stressed that the government must explain the status of the 2025 and 2026 budgets, including which portions have been implemented, released, and spent, and what remains outstanding.

The Budget Office of the Federation is currently advancing preparations for the 2027–2029 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), following the completion of the draft 2027–2029 MTEF and FSP in July 2026. An interim deadline was set for Ministries, Departments, and Agencies (MDAs) to submit their 2027 personnel-cost proposals, with the National Assembly expected to receive the 2027 budget in October.

However, concerns have arisen regarding overlapping budget implementation periods, as highlighted by the International Monetary Fund (IMF) and the World Bank in their assessments of Nigeria's budget execution and fiscal management. These assessments have pointed out issues such as delays in budget passage, overlapping implementation periods, insufficient cash releases, and weak reconciliation of arrears.

The Nigerian Constitution allows for legislative extensions of an Appropriation Act but questions have been raised about the implications for fiscal accountability. A noted economist, Adegboyega Adebajo, suggested that while the government should proceed with the 2027 budget preparations, it should also provide a clear framework for managing the transition between budget cycles and settling outstanding obligations.

Adebajo argued that waiting until all appropriations from 2025 and 2026 have been fully spent before starting the 2027 budget process would make annual fiscal planning unfeasible. He pointed out that the 2027 budget is crucial for establishing the government's macroeconomic and fiscal framework, authorizing new expenditures, planning debt servicing, salaries, transfers, and statutory obligations, and ensuring continuity for long-term development projects.

However, Adebajo cautioned against using the new budget preparation as a way to hide poor implementation of previous budgets, calling for an audited reconciliation of the 2025 and 2026 budget cycles before the 2027 proposal is presented to the National Assembly.