Nigeria to overhaul budgeting process and consolidate fiscal years

The Nigerian Federal Government has announced plans to abandon its current system of managing multiple simultaneous national budgets. Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, stated that outstanding projects and expenditure obligations from the 2026 budget will be transferred into the 2027 fiscal year to prevent the overlap of multiple budget implementations.

Oyedele acknowledged that unrealistic revenue projections and repeated extensions of capital budget implementation have previously weakened the nation's budgetary process. The government is working with the Ministry of Budget and Economic Planning and the Budget Office of the Federation to introduce a more realistic framework starting in 2027. This new approach aims to ground future revenue and spending estimates in actual fiscal performance rather than optimistic assumptions.