Oyedele says unfinished 2026 commitments will move into 2027 budget

The Federal Government plans to transfer unfinished projects and outstanding expenditure commitments from the 2026 budget into 2027 rather than continue running overlapping budgets, Finance Minister Taiwo Oyedele has said.

Oyedele announced the plan on Thursday in Abuja at the launch of the October edition of the World Bank’s Nigeria Development Update. He said the government was working with the Ministry of Budget and Economic Planning and the Budget Office of the Federation on a more realistic framework for next year.

“Whatever is left of 2026, we’re transferring into 2027, not running two budgets,” Punch quoted the minister as saying.

The plan follows the National Assembly’s extension of the capital component of the 2025 budget to December 31, 2026. Punch described it as the fourth extension, giving ministries, departments and agencies more time to complete capital projects.

Oyedele acknowledged weaknesses in revenue forecasts and the repeated extension of capital budgets. He said future revenue and spending projections would be based on actual fiscal performance rather than assumptions carried over from earlier budgets.

He said the government intended to resolve remaining 2024 commitments and address outstanding expenditure under the 2025 and 2026 budgets. Legislative measures were expected to help clear earlier obligations.

The minister said the fiscal strategy would prioritise human development, infrastructure and private investment. He described the tax reforms as an effort to expand economic activity and the number of productive taxpayers, rather than raise taxes on existing businesses and households.

At the same event, World Bank Nigeria director Mathew Verghis called for stronger budget credibility, cash and commitment controls, and better management of public investment. He said increased federal and state revenues needed to produce better development outcomes.

The bank’s lead economist for Nigeria, Fiseha Haile, pointed to gaps between budgeted and actual capital spending across states, alongside weaknesses in cash management and investment planning.

Oyedele said the government intended to submit the 2027 Appropriation Bill before the new fiscal year, but could not guarantee the legislative timetable.

Source: Punch