BudgIT, a civic-tech organisation focused on public finance transparency and accountability, has called for far-reaching reforms in Nigeria’s budgeting process following the Federal Government’s decision to defer the implementation of about 70 per cent of capital projects appropriated in the 2025 fiscal year to 2026.
In a statement, BudgIT said the decision, taken through the Federal Ministry of Budget and Economic Planning, was not entirely unexpected given prevailing fiscal constraints, but raised concerns about its broader implications for budget credibility and fiscal discipline.
According to the organisation, the deferment appears aimed at limiting the number of capital projects under implementation, prioritising critical interventions, using scarce resources more efficiently and reducing the incidence of abandoned projects.
BudgIT noted that rather than introducing a fresh slate of capital projects in 2026, the government seems to be carrying forward existing projects tied to ongoing economic plans and strategies.
The organisation described the move as an attempt to restructure the sequencing of capital project implementation and reset fiscal discipline. It added that, if properly managed, the approach could help stabilise Nigeria’s strained public finances and improve confidence in the budget process.
However, BudgIT reiterated its long-standing concerns about weaknesses in Nigeria’s budgeting framework, including persistent delays in budget implementation and the practice of running multiple fiscal programmes simultaneously.
It said these practices create opportunities for waste, inefficiency and misuse of public resources, while undermining effective planning and prioritisation.
BudgIT also criticised the continued inclusion of numerous low-priority and uncoordinated projects in the federal budget, noting that this has bloated capital expenditure and contributed to rising public debt without commensurate development outcomes.
The group further lamented the absence of disaggregated and publicly available reports on capital expenditure implementation, which it said leaves citizens unable to track project execution.
The organisation pointed to developments in the 2024 fiscal year, when the implementation of capital components of both the 2024 Appropriation Act and its supplementary budget was extended into 2025.
As a result, BudgIT said, only recurrent items such as personnel and overhead costs appear to have been implemented under the 2025 budget, despite its passage and presidential assent.
It added that the status of the 2024 fiscal year remains unclear, noting that the recently released fourth-quarter 2024 budget implementation report was described as “provisional,” raising concerns about proper fiscal closure and transparency.
BudgIT said the deferment of capital projects must be clearly justified during upcoming budget defence sessions at the National Assembly, warning that legislative insertions have historically bloated budgets and weakened fiscal planning.
While acknowledging the constitutional powers of lawmakers, the organisation argued that these have often been exercised without due regard to national development priorities.
Commenting on the issue, BudgIT’s Deputy Country Director, Vahyala Kwaga, said the deferment should mark a departure from overlapping budgets and weak implementation.
“Deferring 70 per cent of capital projects is neither a solution nor a setback on its own. What matters is whether this decision signals a clear break from bloated budgets and overlapping fiscal years,” he said.
BudgIT also urged the Federal Government to strictly adhere to its Bottom-Up Cash Plan, which provides for direct payments to verified contractors, saying the approach could enhance efficiency and accountability if properly enforced.
The organisation called on key institutions, including the Ministry of Finance, the Ministry of Budget and Economic Planning, the Budget Office of the Federation, the Bureau of Public Procurement and relevant ministries, departments and agencies, to uphold transparency and accountability in managing public funds.
It also urged citizens, civil society groups, the private sector and the media to actively scrutinise capital expenditure implementation to ensure better outcomes for Nigerians.
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