The National Assembly is set to extend the 2024 budget cycle, a decision that reflects the challenges posed by the late submission of the 2025 budget proposal.
President Bola Tinubu is scheduled to present the N47.9 trillion 2025 Appropriation Bill to a joint session of the National Assembly today at 12 pm.
However, lawmakers have acknowledged that passing the new budget before the year’s end is unlikely.
Senator Osita Izunaso, Chairman of the Senate Committee on Capital Markets and Institutions, attributed the delay to the late submission of the budget.
“The budget is coming late.
Today is December 18, so we will lose that culture of beginning a new year with a new budget.
Nevertheless, the budget has a lifespan of 12 months,” Izunaso explained.
He added, “Even after 12 months, we still have the liberty to extend it.
In fact, we are extending the 2024 budget today.
But that culture of starting on the 1st of January, we have lost it.
The executive ought to have brought this budget way before now. But I believe that maybe they are putting things together,” he continued.
The January-to-December budget cycle was reintroduced by the 9th National Assembly in 2020 under former President Muhammadu Buhari to enhance fiscal planning and implementation.
This marked a departure from the June-to-May budget cycle, which persisted until 2019 and was criticized for its negative impact on Nigeria’s macroeconomic framework.
At the time, Senator Ahmad Lawan, then-Senate President, highlighted the benefits of the January-December cycle, stating, “If we can do that, our budget will go back to that regular, desirable cycle, and that will enhance the budget performance of this country.”
Despite the reintroduction of the January-December cycle, this year’s budget delays have disrupted its continuity.
President Tinubu, during the presentation of the 2024 budget on November 29, 2023, emphasized the importance of maintaining this cycle, urging lawmakers to ensure its timely passage.
“I am confident that the National Assembly will continue to work closely with us to ensure that deliberations on the 2024 budget are thorough and concluded with reasonable dispatch.
Our goal is for the Appropriation Act to take effect on the 1st of January 2024,” Tinubu said at the time.
Meanwhile, the Senate and the House of Representatives recently passed the 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper.
However, there is still uncertainty about when the 2027 budget estimates will be presented.
Currently, both chambers of the National Assembly are holding separate closed-door sessions.
Key government officials, including Minister of Finance Wale Edun and NNPC Group Managing Director Mele Kyari, are in attendance.
This development underscores the need for better coordination in budget preparation and submission to ensure the timely execution of fiscal plans.
