Financial experts yesterday differed over the implications of the National Assembly’s decision to extend implementation of the 2025 capital budget to December 2026.
While some warned that the extension could undermine budget transparency and fiscal discipline, others said it could support the economy if it led to the completion of productive projects.
The Senate and House of Representatives yesterday approved the extension from September 30 to December 31, 2026, shortly after resuming plenary following their recess.
The Senate passed a bill extending the implementation of the capital component of the 2025 Appropriations Repeal and Enactment Act to allow the Federal Government to complete ongoing projects and utilise funds already appropriated and released.
Sponsored by Senate Leader Opeyemi Bamidele, the bill passed through second and third readings under an expedited legislative process.
Similarly, the House extended the implementation of the capital component of the 2025 Appropriation Act to December 31, 2026.
The House suspended its rules and passed the bill, sponsored by Majority Leader Julius Ihonvbere (APC, Edo), through first, second and third readings.
Experts Divided As NASS Extends 2025 Capital Budget To December
by 
By JAMES KWEN and SAMSON ELIJAH, Abuja, and OLUSHOLA BELLO, Lagos
Financial experts yesterday differed over the implications of the National Assembly’s decision to extend implementation of the 2025 capital budget to December 2026.
While some warned that the extension could undermine budget transparency and fiscal discipline, others said it could support the economy if it led to the completion of productive projects.
The Senate and House of Representatives yesterday approved the extension from September 30 to December 31, 2026, shortly after resuming plenary following their recess.
The Senate passed a bill extending the implementation of the capital component of the 2025 Appropriations Repeal and Enactment Act to allow the Federal Government to complete ongoing projects and utilise funds already appropriated and released.
RELATED: Reps Extend 2025 Capital Budget Implementation To December 2026
Sponsored by Senate Leader Opeyemi Bamidele, the bill passed through second and third readings under an expedited legislative process.
Similarly, the House extended the implementation of the capital component of the 2025 Appropriation Act to December 31, 2026.
The House suspended its rules and passed the bill, sponsored by Majority Leader Julius Ihonvbere (APC, Edo), through first, second and third readings.
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The National President of the Association of Small Business Owners of Nigeria (ASBON), Dr Femi Egbesola, said the extension could support the economy if it resulted in the completion of productive projects.
He said spending on roads, power, transport, agriculture and other infrastructure could stimulate demand, generate contracts for small businesses, improve the movement of goods and reduce operating costs.
Payments to legitimate contractors, he added, could inject liquidity into the economy and help businesses meet wage and other obligations.
“For small businesses and ordinary citizens, the benefit will depend on whether the money gets into the real economy. A completed road can reduce transport costs for traders; reliable electricity can lower the cost of running shops and factories; completed agricultural and irrigation projects can improve food production and incomes,” he said.
Egbesola, however, said repeated extensions highlighted persistent challenges with budget execution.
“If funds continue to be delayed or projects remain unfinished, citizens will not feel the intended economic benefits, while businesses face uncertainty,” he said.
He urged the government to use the extension to complete viable projects, settle verified obligations and ensure value for money.
“The real measure of success is not how long the budget remains open, but how much it improves economic activity, small-business survival and household livelihoods,” Egbesola added.
Economic analyst Tunde Oyediran said the extension raised concerns about budget credibility and fiscal discipline.
He said while it could prevent some projects from being abandoned, running the 2025 and 2026 capital budgets concurrently could create difficulties for tracking, reporting and accountability.
The 2026 Appropriation Act, valued at N68.32 trillion, came into force on April 1, 2026.
“When you run 2025 and 2026 capital budgets at the same time, you create fiscal opacity. Tracking, reporting and accountability become difficult. It becomes hard to determine the true performance of either budget,” he said.
Oyediran said delayed capital spending also affected contractors, small businesses and employment.
“Contractors are owed for months, projects stall, and jobs are affected. When you spread implementation over 21 months, you delay economic impact. GDP may grow on paper, but the transmission to the real economy is weak,” he said.
He added that repeated extensions could weaken budget discipline by reducing the incentive for MDAs to complete procurement early.
“The long-term fix is to enforce the budget calendar, ensure early release of capital votes and strengthen procurement capacity in MDAs, rather than routinely extending implementation,” he said.
Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC) and Head of Transparency International (TI) Nigeria, Auwal Ibrahim Musa Rafsanjani, said non-implementation of budgets, despite being contrary to the law, was becoming routine.
“For almost three consecutive years, we have not been able to implement the budget the way we should,” he said.
Rafsanjani attributed the problem to what he described as corruption, contradictions and inconsistencies in fiscal policy. He also criticised the legislature for failing to hold the executive sufficiently accountable.
Senate
Leading the debate, Senate Leader Opeyemi Bamidele said the extension was necessary to give ministries, departments and agencies (MDAs) time to complete capital projects for which funds had already been appropriated and released.
He cited procurement, contract execution, mobilisation, certification and payment processes as factors that could affect implementation timelines.
He said allowing the deadline to expire could increase the risk of abandoned or incomplete projects.
“The objective before us is straightforward: to protect ongoing public investments, facilitate the completion of critical projects, prevent avoidable waste of public resources and maximize the value derivable from funds already appropriated and released,” Bamidele said.
He stressed that the amendment did not provide a fresh appropriation but extended the period for implementing the existing 2025 capital budget.
“The extension should not be interpreted as a relaxation of the principles of accountability, fiscal responsibility, or legislative oversight,” he said.
Deputy Senate President Barau Jibrin said the extension would help prevent projects initiated under the 2025 appropriation from being abandoned.
Minority Leader Abba Moro (Benue South) also supported the extension but cautioned lawmakers against using the debate to blame previous administrations.
“We agree that extending the budget will enable the government to implement these projects. But to say, for instance, that the non-implementation of budgets extends beyond the administration of the APC government is actually being unfair,” Moro said.
Senator Mohammed Tahir Monguno (Borno South) supported the bill but called for a review of the centralised payment system, which he said had contributed to implementation delays.
“So long shall we continue to have this ugly scenario of non-implementation of the budget necessitating the National Assembly to extend the lifespan of the budget,” Monguno said.
The Senate Committee of Supply subsequently considered and approved amendments extending the implementation deadline from September 30 to December 31, 2026.
The Senate later adopted the committee’s report and suspended its rules to pass the bill through third reading.
Senate President Godswill Akpabio said the extension was necessary because several contractors had yet to complete projects or receive full payment under the 2025 Appropriations Act.
He said allowing the deadline to expire could affect project completion and settlement of outstanding contractual obligations.
“It is not good for us to have abandoned projects littered across the nation, since most contractors have not either completed their jobs or have been fully paid in respect of the 2025 Appropriations Act,” he said.
Akpabio urged the government to use the extension to settle outstanding payments and advance ongoing infrastructure projects.
Reps
Leading the debate in the House, Majority Leader Julius Ihonvbere (APC, Edo) said the extension was necessary because of factors affecting the economy and the difficulty of completing the capital budget within the existing deadline.
“As a responsible parliament, to ensure that non-implementation will not be blamed on the expiration of our own determination, we have decided to move and let it be moved that this be extended to the 31st of December, 2026,” he said.
The House had in June extended implementation of the 2025 capital budget to September 30, 2026.
Timeline of Extensions
The latest extension is the fourth by the 10th National Assembly, moving the deadline from September 30 to December 31, 2026.
The Senate and House approved the extension on Tuesday, September 29, 2026, giving MDAs an additional three months to complete ongoing capital projects and utilise appropriated funds.
The 2025 capital budget, originally scheduled to expire on December 31, 2025, will now remain operational until December 31, 2026.
Four Extensions
First: December 2025 — extended to March 31, 2026.
Second: March 31, 2026 — extended to June 30, 2026.
Third: June 2026 — extended to September 30, 2026.
Fourth: September 29, 2026 — extended to December 31, 2026.
Credit: Leadership