Experts Warn Nigeria’s Budget Chaos Threatens Economy
By OBIOMA TORI
ECONOMIC stakeholders in Abuja have raised alarm over delays in the preparation and presentation of Nigeria’s 2026 budget, describing the current budgeting system as inconsistent and fiscally disruptive. As 2025 draws to a close, the Federal Government has yet to submit the 2026 Appropriation Bill to the National Assembly, marking a departure from the traditional January–December budget cycle.
The Federal Executive Council (FEC) recently approved the Medium-Term Expenditure Framework (MTEF) for 2026–2028, which will guide the finalisation of the 2026 budget. Analysts, however, say the process remains disordered, with three overlapping spending plans—the 2024 budget, a 2024 supplementary budget, and the 2025 budget—currently in effect. Experts warn this overlap undermines accountability, delays capital projects, and fuels fiscal uncertainty.
Prof. Ken Ife, economist and ECOWAS consultant, criticized the 2024 budget’s $75-per-barrel oil benchmark as unrealistic, creating an inflated deficit that crowds out capital expenditure and hinders foreign reserve accumulation. Similarly, Eze Onyekpere of the Centre for Social Justice called the continued extensions of past budgets unconstitutional, noting that arbitrary shifts delay essential infrastructure and prioritize recurrent spending like salaries and debt servicing.
Stakeholders also highlighted the transparency challenges arising from overlapping budgets, with many civil servants and the public unclear about which fiscal plan is in effect. Seun Onigbinde, co-founder of BudgIT Foundation, described the process as chaotic, emphasizing that delays in capital releases—such as the 2025 budget only beginning implementation in October—erode public trust and distort fiscal management.
Government officials defended the process. Minister of Budget and Economic Planning, Atiku Bagudu, said the approved MTEF provides a framework to conclude the 2026 Appropriation Bill, with capital rollovers from 2025 expected to continue into the new fiscal year. Finance Minister Wale Edun added that the extended 2024 capital budget had largely been fulfilled and that 2025 capital releases are on track for completion by December 30.
While officials promise a more structured 2026 budget cycle, experts warn that Nigeria’s ongoing budget inconsistencies threaten economic stability, investor confidence, and the timely delivery of critical development projects.
