Senate Extends 2025 Capital Budget Implementation to September

The Nigerian Senate has granted a fresh three-month extension for the implementation of the capital component of the 2025 Appropriation Act, pushing the deadline from June 30, 2026, to September 30, 2026. This marks the third such extension in six months, reflecting ongoing struggles by ministries, departments, and agencies (MDAs) to fully utilize allocated funds.

The decision, driven by a motion sponsored by Senate Chief Whip Senator Tahir Munguno, aims to salvage ongoing projects and enable MDAs to complete their capital projects. Munguno highlighted that substantial portions of released funds remain unutilized due to procurement timelines, project execution hurdles, and administrative bottlenecks. He warned that allowing the implementation window to lapse could lead to the abandonment of critical projects and a waste of public resources.

Senator Olamilekan Adeola, Chairman of the Senate Committee on Appropriations, seconded the motion, noting that while some payments have commenced, numerous obligations are still outstanding. The extension is seen as crucial for promoting efficient use of public funds, improving budget performance, and supporting national development objectives. The Senate believes this move is in the national interest and will ensure value for money in public spending.

Previous extensions had moved the deadline from December 31, 2025, to March 31, 2026, and then to June 30, 2026. The latest shift underscores the persistent challenges in budget implementation within the Nigerian government, particularly concerning the timely utilization of capital funds for strategic projects across key economic sectors.

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The Senate is convinced that granting a further extension of the implementation period is in the national interest and will ensure value for money in public expenditure.