Reps Approve Extension of 2025 Capital Budget Implementation to March 2026

The House of Representatives has approved President Bola Tinubu’s request to extend the implementation of the capital component of the 2025 budget to March 31, 2026.

The approval followed the passage of the 2024 and 2025 Appropriation (Repeal and Re-enactment) Bills, transmitted to the National Assembly last week by the President to allow full release of funds for capital projects across ministries, departments, and agencies (MDAs).

The first bill seeks to repeal the 2024 Appropriation Act of N35.06 trillion and re-enact it with a total allocation of N43.56 trillion, covering N1.74 trillion for statutory transfers, N8.27 trillion for debt servicing, N11.27 trillion for recurrent non-debt expenditure, and N22.28 trillion for capital projects.

The second bill proposes repealing the 2025 Appropriation Act of N54.99 trillion and re-enacting it at N48.32 trillion, including N3.65 trillion for statutory transfers, N14.32 trillion for debt service, N13.59 trillion for recurrent non-debt expenditure, and N16.77 trillion for capital projects to run until March 31, 2026.

Chairman of the House Committee on Appropriation, Abubakar Bichi, told lawmakers that the review was aimed at balancing fiscal responsibility with responsiveness, ensuring urgent expenditures are met without undermining oversight.

Bichi noted that N16.76 trillion of capital allocations was rolled over to the 2026 fiscal year due to funding constraints, a measure expected to enhance budget effectiveness and improve revenue generation in the coming year.

He admitted that the practice of extending budget cycles, such as carrying over the 2024 budget into 2025, undermines fiscal discipline and clarity.
The House considered the bills clause by clause, approved them, and passed them for third reading before adjourning plenary until January 27, 2026.