Nigeria’s President Bola Ahmed Tinubu has proposed a 43.56 trillion naira ($29.96 billion) budget reset aimed at repealing and re-enacting the 2024 budget to extend through December 2025. The primary objective is to eliminate the longstanding practice of overlapping fiscal years, which has historically complicated financial planning, accountability, and capital project execution. By aligning the nation’s fiscal cycle with the calendar year from 2026, Nigeria aims to enhance transparency and attract greater investor confidence.
Globally, synchronising fiscal years with the calendar is considered a standard best practice. It facilitates more accurate macroeconomic forecasting and improves public resource management. Countries across sub-Saharan Africa, including Kenya and Ghana, have long faced fiscal misalignments that impede budget execution, creating challenges in harmonising domestic priorities with donor commitments and multilateral development funds. Nigeria’s proposed reform positions it among African nations pursuing streamlined fiscal governance and modern public-finance management.
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Under the proposed Appropriation, Repeal and Re-enactment Bill, the budgetary plan includes detailed allocations designed to balance continuing operations with developmental priorities. Out of the 43.56 trillion naira total, 1 trillion naira is designated for statutory transfers; 8.2 trillion naira for debt servicing; 11.2 trillion naira for recurrent non-debt expenditures; and 22.2 trillion naira for capital projects and development funds.
Debt servicing alone represents a significant portion, reflecting Nigeria’s growing debt profile, which reached an estimated 152.39 trillion naira ($99.66 billion) in late 2025. Analysts note that effective management of such obligations is critical, as rising debt-to-GDP ratios can crowd out essential capital expenditures and social investments. Capital projects, a central focus of the reset, are intended to sustain infrastructure development, energy expansion, and health sector improvements. The World Bank reports that inadequate infrastructure continues to suppress private-sector productivity by up to 40% in Nigeria, underscoring the importance of timely and well-managed capital spending.
Overlapping budgets have been a recurring feature of Nigeria’s public finance in recent years. Under the current administration, the Senate has approved multiple overlapping budgets, extending capital components from previous fiscal periods well beyond their intended end dates. In 2024, three separate budgets were effectively active concurrently: the ₦21.8 trillion 2023 budget, a ₦2.17 trillion supplementary budget for 2023, and the newly passed ₦28.7 trillion 2024 budget. President Tinubu’s government extended the capital legs of older budgets first to June 2024 and then to December 2024, even after the 2024 budget had commenced.
This trend continued into 2025, with the capital component of the 2024 appropriation budget extended again, first to June 2025 and subsequently to December 2025, even as a separate 2025 budget of approximately ₦54.2 trillion was already in force. The result has been simultaneous implementation of two budgets, creating a complex fiscal environment. Economists and lawmakers alike note that no democratic Nigerian government since 1999 has operated three overlapping budgets within a single year, highlighting the structural challenges the reset seeks to address.
A central motivation behind the budget realignment is to restore investor confidence. Fiscal unpredictability, particularly from overlapping budgets, has historically deterred foreign direct investment and slowed donor-funded projects. By establishing a clear and predictable budget cycle, Nigeria signals its commitment to disciplined public financial management — a critical consideration for international lenders, investors, and multilateral agencies such as the African Development Bank (AfDB) and the International Monetary Fund (IMF).
Economic experts argue that the reform could also improve domestic revenue collection. Nigeria’s Federal Inland Revenue Service has long contended with mismatched fiscal periods, complicating tax forecasting and revenue mobilisation. Aligning the fiscal year with the calendar year may enhance compliance, reduce administrative burdens, and provide more accurate data for policy planning.
Nigeria’s initiative carries broader significance for Africa’s economic landscape. As the continent pursues integration under the African Continental Free Trade Area (AfCFTA), member states increasingly focus on harmonising financial governance frameworks. A standardised fiscal calendar can improve cross-border investment planning, facilitate synchronised budget execution for regional projects, and enhance the credibility of public accounts among international stakeholders.
Other African economies, such as Uganda, which recently announced a 21% reduction in domestic debt issuance for fiscal year 2026/27, demonstrate the importance of fiscal discipline in boosting economic resilience. Aligning fiscal cycles with global standards allows countries to better manage debt, ensure the timely delivery of public services, and maintain economic stability in an interconnected financial environment.
Despite its promise, Nigeria’s budget reset faces operational and political challenges. Repealing and re-enacting an existing budget requires swift legislative approval, careful recalibration of departmental allocations, and meticulous management to prevent disruption of ongoing projects. Short-term uncertainty could affect procurement cycles and delay public service delivery if not properly communicated.
The reform must navigate a political landscape where budget decisions are closely intertwined with local and national interests. Transparency and stakeholder engagement will be essential to ensure broad-based support and mitigate resistance from sectors accustomed to the previous fiscal rhythm.
A Step Toward Modern Fiscal Governance
Nigeria’s $30 billion budget reset represents a landmark moment in African public finance. Beyond immediate fiscal realignment, it embodies a commitment to structural reform, accountability, and economic modernisation. By synchronising its fiscal year with global norms, Nigeria aims not only to improve domestic governance but also to bolster its position as a leading economic actor in Africa.
As the 2026 fiscal year approaches, attention will focus on the Nigerian legislature, civil service, and financial institutions to ensure the reset achieves its intended outcomes. If successful, it could serve as a blueprint for other African nations grappling with overlapping fiscal cycles and reinforce Nigeria’s role as a model for pragmatic, forward-looking economic policy on the continent.
