A Chaotic Budgeting System in Nigeria
The budgeting process in Nigeria has been described as chaotic and uncoordinated by Seun Onigbinde, co-founder of the BudgIT Foundation. During an interview on Channels Television, he highlighted that the federal government’s budgeting framework is in shambles, lacking fiscal discipline, planning, and accountability.
Onigbinde pointed out that multiple budgets have been extended beyond their calendar years, leading to confusion in project execution and financial reporting. He noted that both the 2023 and 2024 budgets were extended into 2025 without proper justification. This practice distorts fiscal management and weakens public trust in the budgeting process.
He explained that although President Bola Tinubu signed the 2025 budget earlier in the year, capital implementation only began in October, several months into the fiscal year. This delay shows a clear disconnect in how the government manages its fiscal responsibilities. Onigbinde emphasized that such patterns expose deep structural challenges in the federal government’s financial system.
Delays and Lack of Accountability
As of the third quarter of 2025, the government has yet to release any implementation report for the year, meaning there is no record for the first and second quarters of budget execution. This lack of documentation means Nigerians cannot even tell which projects are being implemented or how significant they are to national development.
Proper fiscal practice demands that once a budget year ends, the government should close accounts, mop up unspent funds, and present a supplementary budget. However, Onigbinde stated that the current approach involves extending old budgets into new years, creating distortion. He added that the 2024 budget has been extended into 2025, raising questions about when the 2025 budget even begins.
Coordination and Fiscal Discipline
Onigbinde noted that poor coordination between the Budget Office, the Ministry of Budget and National Planning, and the Ministry of Finance has worsened the problem. He explained that the breakdown in coordination rests on the table of the president, who must take responsibility for ensuring that the various fiscal agencies work in harmony.
Under former President Muhammadu Buhari, there was at least a framework that ensured the budget cycle ran from January 1 to December 31, even if the presentation came late. However, the current administration has broken that covenant, leaving the country without a predictable budget calendar.
Current Fiscal Challenges
As of November 12, 2025, there was still no Medium-Term Expenditure Framework (MTEF) document or proposed 2026 budget before the Federal Executive Council. This is a clear sign of how far fiscal discipline has deteriorated. In previous administrations, budgets were sometimes presented as early as October to allow for adequate scrutiny before the year ended, but the current government has failed to sustain this tradition.
The consequences of the delay are already visible in the poor implementation of capital projects and the rising frustration among contractors. Onigbinde highlighted that the capital expenditure for 2024 was put around N12 trillion, but only N6 trillion was used, resulting in a 50 percent capital performance. This situation extends into 2025, meaning no new projects have been executed.
Financial Strain and Debt
The country’s debt servicing cost has nearly doubled, rising from N6.86 trillion to N12.36 trillion. While federal government revenue grew from N12.4 trillion in 2023 to N20.98 trillion in 2024, this increase is largely due to naira devaluation rather than real productivity. The federal government targeted N25 trillion in revenue in 2024 but only realized N21 trillion, widening the fiscal deficit.
Despite higher numbers, borrowing has become inevitable because most of the revenue is used for debt servicing, statutory transfers, and overhead costs, leaving little or nothing for capital expenditure. Onigbinde warned against reverting to the “dark days” when the Central Bank of Nigeria was used as a “piggy bank” to fund deficits.
Call for Action
Onigbinde urged the National Assembly to cut down on unnecessary insertions and support the executive in prioritizing key capital projects. He stressed that without such actions, the country will continue to face bloated capital budgets that are never executed.
Many contractors are still protesting unpaid contracts that have been completed for over a year, indicating the depth of the fiscal crisis. Onigbinde called on the president to set clear spending priorities and prepare supplementary budgets when resources fall short.
Conclusion
The lopsided implementation of the budget is not helpful for national development and could derail public confidence in government institutions. Onigbinde concluded that what is needed is clarity, accountability, and coordination to restore fiscal discipline and ensure effective governance.
