President Bola Ahmed Tinubu has declared that Nigeria will fully adopt a single annual budget cycle starting April 2026. The change ends the practice of overlapping fiscal years that has complicated planning and execution.
Okay News reports that the announcement came during President Tinubu’s presentation of the 2026 Appropriation Bill to a joint session of the National Assembly in Abuja, Nigeria’s federal capital, on December 20, 2025.
Overlapping budgets have distorted resource allocation across Ministries, Departments, and Agencies (MDAs). They delayed capital releases and reduced transparency.
“We are terminating the habit of running three budgets in one inflow. By March 31, 2026, all capital liabilities from previous years will be fully funded and closed,” Tinubu stated.
“From April, Nigeria operates on a single budget, backed by a single revenue cycle. No overlaps, no excuses, no rollovers culture,” he added.
The transition extends the 2025 budget to March 31, 2026. This provides time to settle outstanding capital obligations.
Once cleared, the country returns to a streamlined January-to-December cycle. The reform strengthens public financial management and accountability.
President Tinubu recently requested legislative approval to revise and extend prior budgets. The 2024 budget rose from N35.06 trillion to N43.56 trillion, extended to December 2025.
The 2025 budget was reduced from N54.99 trillion to N48.32 trillion while extended to March 2026. Earlier extensions covered the 2024 capital component.
Federal directives allow carrying over 70 percent of 2025 capital allocations into 2026. This supports continuity during the transition.
The single-cycle framework originated under the 9th National Assembly. It promotes fiscal discipline and timely implementation.
This reform aligns with broader efforts to enhance revenue mobilisation and budgetary efficiency. It addresses long-standing challenges in Nigeria’s public finance system.
The shift promises clearer planning, faster project execution, and stronger oversight across government spending.
