The Director General of the Budget Office, Dr. Tanimu Yakubu, has explained that Nigeria’s use of multiple budgets is legal and not a sign of fiscal disorder. His response followed growing public concern over the National Assembly’s recent decision to extend the 2024 budget for a second time.
Yakubu clarified that Nigeria is currently operating three budget instruments: the 2024 Main Budget, a 2024 Supplementary Budget, and the newly signed 2025 Appropriation Act. He stressed that this overlap is neither unusual nor illegal, pointing out that countries like India, Indonesia, and Kenya follow similar practices.
According to him, the 2024 budget, approved in January, remains in effect until December 31 unless formally repealed. It continues to guide spending on capital projects, ongoing contracts, and statutory obligations.
The supplementary budget was introduced mid-year to tackle unexpected demands, such as rising security challenges and humanitarian needs. Yakubu noted that supplementary budgets are common tools used globally to adjust existing budgets based on new financial realities.
The 2025 budget was signed before the close of 2024 in a bid to maintain a consistent January-to-December budget cycle. However, its execution overlaps with unspent capital allocations from 2024, procurement delays, and ongoing multi-year or donor-funded projects.
Yakubu emphasised that the law supports this system through provisions in the Finance Act, Appropriation Act, and directives from the Central Bank. These laws allow capital funds to be carried into the next fiscal year and enable early funding of new budgets while older ones are being closed out.
He described the coexistence of these budgets not as confusion but as a structured transition aimed at improving accountability. According to him, the real focus should be on how well the budgets are managed, not the number in operation.
