Economic consultants have warned the Federal Government towards permitting the preparation of the 2027 Appropriation Bill to overshadow considerations over the implementation of earlier budgets, calling for better transparency in public spending and a complete account of excellent commitments.
They mentioned whereas the preparation of the 2027 price range was essential, the federal government should clarify how a lot of the 2025 and 2026 budgets had been carried out, how a lot had been launched and spent, and what remained excellent.
The considerations come because the Budget Office of the Federation advances preparations for the 2027–2029 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), amid the continued implementation of the 2025 and 2026 budgets.
In July 2026, the Budget Office concluded the draft 2027–2029 MTEF and FSP. It subsequently issued a round dated September 4, setting 4 p.m. on September 18 because the deadline for Ministries, Departments and Agencies (MDAs) to submit their 2027 personnel-cost proposals.
The preparations are a part of the groundwork for presenting the 2027 price range to the National Assembly, anticipated in October, at the same time as considerations persist over overlapping price range implementation durations.
The International Monetary Fund (IMF) and the World Bank have, of their respective assessments, highlighted weaknesses in Nigeria’s price range execution and monetary administration, together with delays in price range passage, overlapping implementation durations, insufficient money releases, weak reconciliation of arrears, off-budget expenditure and restricted public reporting.
Although an Appropriation Act typically applies to the monetary yr for which it’s enacted, questions have continued to come up over the apply of extending price range implementation durations and the implications for fiscal accountability.
The Constitution doesn’t seem to impose an absolute prohibition on the National Assembly extending, amending, repealing or reenacting an Appropriation Act. The Budget Office has relied on Sections 80–84 of the Constitution to argue {that a} legitimate legislative extension stays lawful till the prolonged expiration date.
The central concern, subsequently, is whether or not such extensions stay distinctive measures to fulfil reliable excellent obligations or turn into a routine substitute for well timed budgeting and efficient implementation.
Speaking on the problem, economist and funding banker, Adegboyega Adebajo, mentioned the federal government ought to proceed with preparations for the 2027 price range however accompany the method with a transparent framework for managing the transition between price range cycles and clearing excellent obligations.
According to him, ready till each naira appropriated in 2025 and 2026 has been spent earlier than getting ready the following price range would make annual fiscal planning impracticable.
“A sovereign government must budget prospectively. Waiting until every naira appropriated in 2025 or 2026 has been spent before preparing a 2027 estimate would make annual fiscal planning impossible — budget execution is not, and should not be treated as, a condition precedent to preparing the next budget,” he mentioned.
Adebajo defined that the 2027 price range was essential to determine the federal government’s macroeconomic and monetary framework for the yr, authorise new expenditure, plan debt servicing, salaries, transfers and statutory obligations, and supply continuity for multi-year infrastructure and growth programmes.
He added that the price range would additionally allow the federal government to align expenditure with projected income and financing necessities and stop the nation from working and not using a present appropriation.
However, he warned that getting ready a brand new price range should not turn into a method of concealing poor implementation of earlier appropriations.
“What is not prudent, however, is maintaining overlapping budgets without a transparent reconciliation of commitments, releases, arrears and actual outcomes,” he mentioned.
Adebajo known as on the federal government to publish an audited reconciliation of the 2025 and 2026 price range cycles earlier than presenting the 2027 proposal to the National Assembly.
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