The Federal Government has clarified why it is currently operating three budgets simultaneously, insisting the move is a strategic effort to ensure the successful execution of capital projects and fiscal reforms. Director General of the Budget Office, Tanimu Yakubu, explained that the 2024 Appropriation Act, a mid-year 2024 Supplementary Budget, and the 2025 Appropriation Act are all being implemented concurrently to manage overlapping financial obligations effectively.
Yakubu emphasized that this approach is not a sign of financial disorder but rather a legally supported, globally practiced strategy to bridge budget cycles, address delayed project executions, and adapt to evolving economic realities. The 2024 budget remains valid, particularly for capital expenditures, while the supplementary budget was introduced to respond to urgent needs like security, humanitarian issues, and revenue adjustments.
He further noted that the 2025 budget was activated to preserve the January-December fiscal cycle, even as unspent allocations from the previous year continue to be lawfully disbursed. This parallel implementation is aimed at enhancing flexibility and transparency in Nigeria’s budgeting process.
According to Yakubu, such overlaps are consistent with international practices seen in countries like India, Indonesia, and Kenya. He stressed that these efforts form part of a wider reform agenda to modernize Nigeria’s complex fiscal system.
Meanwhile, economic experts, including Dr. Muda Yusuf of the Centre for the Promotion of Private Enterprise (CPPE), expressed concern over the recurring delays in capital budget implementation. Yusuf cited unrealistic revenue assumptions and overambitious spending plans as underlying issues. He called for reforms to make future budgets more achievable and better aligned with actual government revenues.
Despite the challenges, the government maintains that the triple budget arrangement is a necessary transitional strategy for building a more robust and accountable public finance framework.
