Senate extends 2025 capital budget implementation for three months, citing unfinished projects and delayed payments amid concerns over centralised syste
For the fourth time, the Senate on Tuesday extended the implementation period of the capital component of the 2025 Appropriation Act from September 30 to December 31, 2026, citing the need to prevent the abandonment of ongoing projects and ensure effective utilisation of funds already appropriated and released.
The extension followed the passage of the Appropriations Repeal and Enactment Act 2025 Amendment Bill 2026, which was considered and passed through second and third readings on the same day.
The measure effectively gives ministries, departments and agencies (MDAs) an additional three months to complete eligible capital projects, process outstanding payments and utilise funds already provided under the 2025 budget, subject to existing financial regulations, procurement laws and legislative oversight.
Presenting the bill, the Senate Leader, Senator Opeyemi Bamidele, said the extension was necessary because several capital projects across the country remained at various stages of implementation, while a significant amount of released capital funds had yet to be utilised.
He explained that capital budget implementation involved several stages, including procurement, contract execution, mobilisation, certification of completed works and payment, stressing that the processes needed to be properly coordinated to ensure successful completion of projects.
According to him, allowing the existing September 30 deadline to lapse without an extension could create avoidable difficulties for MDAs seeking to complete projects already at advanced stages.
“Mr. President, the essence of this proposed extension is to provide the necessary legal and administrative window for ministries, departments and agencies of the federal government to fully implement capital projects for which appropriations have been made and funds released,” Bamidele said.
He stressed that the legislation did not constitute a fresh appropriation but merely created additional time within the existing legal framework for implementation.
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“The bill does not seek to introduce a new appropriation. Rather, it seeks to provide additional time within the existing legislative framework for the implementation of the capital component of the 2025 appropriation, thereby ensuring that appropriated funds are utilised effectively, transparently and for the intended purposes,” he said.
Bamidele, however, cautioned MDAs against treating the extension as a relaxation of accountability requirements, insisting that all expenditure during the extended period must comply with applicable laws and regulations.
“I wish to emphasise that the extension should not be interpreted as a relaxation of the principles of accountability, fiscal responsibility or legislative oversight,” he said.
The Senate Leader added that the measure was intended to protect public investments, facilitate the completion of critical infrastructure, prevent waste and maximise value from already appropriated resources.
But the Chief Whip, Senator Tahir Mongunno, identified the centralisedpayment system domiciled in the Office of the Accountant-General of the Federation as one of the factors contributing to delays in budget implementation.
Mongunno urged the Executive to review the policy, warning that its continued operation could result in repeated requests to extend budget implementation periods.
“So long as that system is not consigned to the dustbin of history, so long shall we continue to have this ugly scenario of non-implementation of the budget, necessitating the National Assembly to extend the lifespan of the budget,” he argued.
He added, “I think there is a need for the Executive to have a look at this policy that has continued to constitute a cork in the wheel of implementation of the budget.”
The bill, SB 1067, was subsequently referred to the Committee of Supply, which considered it clause by clause and recommended amendments to Section 12 of the 2025 Appropriation Act, as well as the short title, explanatory memorandum and long title.
The Senate later adopted the committee’s report and, after suspending the relevant rule, proceeded to third reading before passing the bill.
Senate President Godswill Akpabio said the extension was necessary to prevent the proliferation of abandoned projects, particularly as several contractors were yet to complete their jobs or receive full payment.
“It is not good for us to have abandoned projects littered across the nation since most contractors have not either completed their jobs or have been fully paid in respect of the 2025 Appropriations Act,” Akpabio said.
He added that allowing the September 30 deadline to expire without extending the implementation period would have been counterproductive.
“It would have been wrong for us to just allow the 30th of September to come and go without extending the period within which the Minister of Finance and the federal government can settle most of these contracts,” he said.
Akpabio urged the Executive to use the additional period to settle outstanding obligations and bring ongoing projects to completion.
Meanwhile, President Bola Tinubu has requested Senate approval of the 2026 budget proposal of the Niger Delta Development Commission (NDDC).
Tinubu’s request was contained in a letter addressed to Akpabio and read on the floor of the Senate on Tuesday.
The President said the NDDC budget proposal was prepared in accordance with Section 121 of the 1999 Constitution, as amended, and relevant provisions of the law establishing the commission.
According to him, the proposal was structured around the commission’s revenue and expenditure priorities and aligned with the Federal Government’s fiscal and development policies as well as the Renewed Hope Agenda.
He said it also took into consideration the 2024–2026 Economic Recovery Plan and key assumptions underpinning the Federal Government’s 2026 Appropriation Act.
Tinubu said the NDDC had prioritised youth empowerment, energy and power supply, education, industrial and enterprise development, healthcare, security and increased agricultural productivity under the proposed budget.
He said the initiatives were aimed at improving living conditions and lifting significant numbers of Nigerians out of poverty in the Niger Delta region.
“I look forward to the timely passage of the 2026 Statutory Budget Proposal of the Niger Delta Development Commission by the Senate,” the President said.
Akpabio subsequently referred the proposal to the Senate Committee on Niger Delta Development Commission for legislative scrutiny and directed the committee to report back within four weeks.
The Senate’s extension of the 2025 capital budget implementation period and its commencement of consideration of the NDDC’s 2026 statutory budget came as the legislature intensified scrutiny of public expenditure and project implementation ahead of the expiration of the existing capital budget window
