FG Vows End to Budget Extensions, Pledges Full Fiscal Discipline

The Federal Government has vowed to end the long-standing practice of extending national budgets into subsequent fiscal years, insisting that future budgets will be fully implemented within the approved calendar.

Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, made the announcement on Monday during a panel session titled “The Reform Imperative: Building a Prosperous and Inclusive Nigeria by 2030” at the 31st Nigerian Economic Summit in Abuja.

Edun said the move, agreed with the National Assembly, aims to restore order and clarity to public finance management.

“We have agreed that there will be no more budget extensions into the following year. This has caused unnecessary confusion in the system, and we are restoring fiscal discipline,” he stated.

The minister explained that the measure forms part of broader reforms to boost transparency, efficiency, and accountability in government operations.

Edun also revealed that the government is recalibrating its borrowing strategy, reducing reliance on external debt, particularly Eurobonds, in favour of sustainable domestic instruments such as sukuk, green bonds, and diaspora bonds.

“These instruments deepen our domestic investor base and support projects aligned with our sustainable development goals,” he said.

On government funds, Edun disclosed that the federal government now has a complete view of its accounts with the Central Bank of Nigeria (CBN) for the first time.

“Until August 1, we did not have full visibility of all federal government accounts with the CBN. Now, we are committed to bringing every kobo into view and recovering all funds outside the system,” he noted.

The minister further highlighted a new federal billing system introduced to track government payments, ensuring all transactions are traceable from start to finish.

Speaking on revenue and inflation management, Edun said bold reforms, including the removal of the fuel subsidy and exchange rate unification, have significantly improved fiscal inflows.

“These measures have freed up resources equivalent to about five per cent of GDP, which now boost state allocations by over 111 per cent, empowering them to drive development,” he said.

Director-General of the Debt Management Office (DMO), Ms Patience Oniha, stressed that Nigeria’s debt is manageable, noting that the key issue is the proportion of revenue allocated to debt servicing.

“Our debt-to-GDP ratio is about 40 per cent, below the 70 per cent threshold set by the World Bank and IMF. The challenge lies in ensuring revenue growth to reduce the debt service-to-revenue ratio,” Oniha said.

She added that stronger revenue mobilization will ease borrowing pressures and free resources for critical infrastructure, education, and other national priorities.

Oniha also reaffirmed that all debt servicing provisions are included in the Medium-Term Expenditure Framework (MTEF) and annual budgets, ensuring transparency and predictability in fiscal planning.

Despite current economic challenges, both Edun and Oniha expressed optimism that ongoing reforms and improved revenue performance, across oil and non-oil sectors, will strengthen macroeconomic stability and reduce Nigeria’s debt burden.