Senate extends 2025 capital budget implementation to December 31, 2026

The Senate Tuesday passed an executive bill extending the implementation period of the capital component of the 2025 Appropriations Act from September 30 to December 31, 2026.

It declared that the measure was necessary to prevent the abandonment of ongoing projects and ensure that funds already appropriated and released were effectively utilised.

The passage of the Appropriations Repeal and Enactment Act 2025 Amendment Bill 2026, which was taken through second and third readings on the same day, followed concerns that several ministries, departments and agencies (MDAs) had yet to fully utilise funds released for capital projects under the 2025 budget.

The Senate also expressed concern over the implementation bottlenecks affecting capital expenditure, with the Chief Whip, Senator Tahir Mongunno, specifically blaming the centralised payment system domiciled in the Office of the Accountant-General of the Federation for contributing to delays in budget execution.

Monguno, while contributing to debate on the extension urged the Executive to review the policy, arguing that unless the centralised payment arrangement was reconsidered, the National Assembly might continue to be confronted with requests to extend the lifespan of budgets.

He said, “So long as that system is not consigned to the dustbin of history, 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.

“So, I think there is a need for the Executive to have a look at this policy that has continued to constitute a cork in the wheel of implementation of the budget.

“Having said that, I fully support the second reading of this bill.”

The Senate’s decision came after the Leader of the Senate, Opeyemi Bamidele, in his presentation of the bill, explained that the extension was required to provide MDAs with additional time to complete capital projects for which appropriations had already been made and funds released.

According to him, capital budget implementation involved several processes, including procurement, contract execution, mobilisation, certification of works and payment, which needed to be properly coordinated before projects could be completed.

He said allowing the September 30 deadline to lapse without an extension could create difficulties for MDAs seeking to complete projects already at advanced stages of implementation.

“Mr. President, the essence of this proposed extension is to provide the necessary legal and administrative window for ministries, departments and agencies of the Federal Government to fully implement capital projects for which appropriations have been made and funds released,” he said.

The Senate Leader further explained that a significant amount of capital funds released to MDAs remained unutilised, stressing that the proposed extension was designed to prevent resources already appropriated and released from being wasted.

“Allowing the current implementation deadline to lapse without providing additional time could create avoidable difficulties for MDAs in completing projects for which resources have already been appropriated and released,” he said.

He added that several critical infrastructure and development projects across the country were at different stages of completion and could suffer if the statutory implementation period expired before they were concluded.

The bill according to him, does not seek to introduce a new appropriation. Rather, it seeks to provide additional time within the existing legislative framework for the implementation of the capital component of the 2025 appropriation, thereby ensuring that appropriated funds are utilised effectively, transparently and for the intended purposes.

The bill, numbered SB 1067, was subsequently referred to the Committee of Supply for clause-by-clause consideration.

The Committee of Supply considered the bill and recommended amendments to the Appropriation Act 2025, Section 12, the short title, explanatory memorandum and long title.

The Senate later reverted to plenary, where the report of the Committee of Supply was considered and adopted.

Following the suspension of the relevant Senate rule, the bill was subjected to third reading and subsequently passed.

The Senate President, Godswill Akpabio, after the passage, thanked senators for their contributions and described the extension as necessary to prevent the proliferation of abandoned projects across the country.

He said it would have been inappropriate to allow the September 30 deadline to expire without giving the Federal Government additional time to settle outstanding obligations associated with the 2025 capital projects.

“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.

“It would have been wrong for us to just allow the 30th of September to come and go without extending the period within which the Minister of Finance and the Federal Government can settle most of these contracts”, he said.

He added that the extension should be used to ensure that payments were made and ongoing projects brought to levels where Nigerians could see and benefit from the infrastructure being provided.

“I hope that this period extended will be utilised to ensure that all payments are made and all necessary contracts are done for the benefit of the Nigerian people,” he said.