The Federal Government has announced that approximately 70 per cent of the 2025 budget will be carried over into 2026, as only a fraction of the budget was fully executed this year.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, revealed this during an interactive session with the Senate Committee on Finance, where members of the President’s economic team discussed the 2026–2028 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP).
According to the Minister, only 30 per cent of the 2025 budget was fully funded, with significant portions of capital projects still pending.
He stressed that the rollover is necessary to avoid repeated extensions and ensure that the 2026 fiscal year functions under a single, consolidated budget.
Edun also highlighted that while the government’s revenue estimates rose from M20 trillion in 2024 to N40 trillion in 2025, actual collections lagged behind projections, particularly in the oil sector, underscoring the need for stronger revenue generation strategies over borrowing.
During the session, key officials including the Minister of Budget and Economic Planning, Abubakar Bagudu; the Minister of State for Finance, Doris Uzoka-Anite; and the Accountant-General of the Federation, Babatunde Ogunjimi, outlined ongoing efforts to clear outstanding obligations from the previous budget cycle.
The Accountant-General confirmed that up to 80 per cent of payments to indigenous contractors had been made, with subsequent installments already underway.
Lawmakers, however, expressed concern over delays in executing constituency projects and the apparent simultaneous operation of multiple budget cycles.
Senator Danjuma Goje warned that the non-implementation of certain projects could undermine public confidence in government fiscal management.
Some senators also questioned whether revenue assumptions would be carried forward or recalibrated in the 2026 budget.
To address these issues, the Senate Committee announced the formation of a three-member panel to coordinate with the government’s economic team and accelerate payments to contractors.
Edun reaffirmed the government’s focus on sustainable economic growth through productive investment and increased domestic revenue, rather than reliance on borrowing.
The discussions highlighted the importance of fiscal discipline and realistic budgeting as Nigeria transitions into the next fiscal year.
