The House of Representatives, yesterday, approved a fresh extension of the capital component of the 2025 Appropriation Act, shifting the implementation deadline from June 30 to September 30, 2026.

However, civic technology organisation, BudgIT, has described the Federal Government’s 2026 budget as overly ambitious, unrealistic and largely unfeasible under prevailing economic conditions, warning that the fiscal plan could deepen Nigeria’s fiscal vulnerabilities without urgent reforms.

The House resolution followed the passage of the Appropriation (Repeal and Enactment) Act, 2025 (Amendment) (No. 2) Bill, 2026, during an emergency plenary convened to consider the request.

The plenary was presided over by Speaker Abbas Tajudeen.

With the latest approval, the deadline for executing capital projects under the appropriation law has now been moved to September 30, 2026.

Leader of the House, Julius Ihonvbere, led the debate on the general principles of the bill seeking to extend the lifespan of the capital expenditure of the 2025 budget.

He noted that substantial funds released to Ministries, Departments and Agencies (MDAs) remained unspent due to administrative bottlenecks, procurement delays, and implementation challenges.

Ihonvbere added that the extended window aims to prevent the abandonment of critical infrastructural projects across the country, allow time for ongoing projects to be finished, and settle outstanding obligations.

The special sitting was held despite the House having adjourned plenary until July 7, following the conclusion of the third legislative year of the 10th Assembly.

In a memorandum issued ahead of the sitting, the Acting Clerk of the House, Ibrahim Sidi, informed lawmakers that the session was convened in line with Order 5, Rule 2(2) of the House Standing Orders to consider the amendment bill seeking an extension of the implementation period for the capital component of the budget.

The extension is intended to provide MDAs with additional time to complete ongoing capital projects captured in the 2025 budget.

The chamber had adjourned until July 7 before recalling members to address the budget implementation timeline.

IN its analysis of the approved budget, BudgIT noted that while the government projected total expenditure of N68.32 trillion for the fiscal year, expected revenue stands at only N36.87 trillion, leaving a fiscal deficit of N31.45 trillion.

The organisation said the deficit, equivalent to 6.41 per cent of the nation’s Gross Domestic Product (GDP), exceeds the three per cent threshold stipulated under the Fiscal Responsibility Act (FRA), raising concerns about the sustainability of the country’s public finances.

According to BudgIT, the government can only finance about 53.9 per cent of the budget from projected revenues, while the remaining 46.1 per cent would depend on borrowings and loans.

The group stated that the development points to a structural fiscal imbalance that has become entrenched in Nigeria’s budgeting framework despite repeated warnings from stakeholders and fiscal policy experts.

BudgIT further observed that weak revenue performance and declining public trust in governance continue to undermine effective budget implementation, stressing that transparency in budget execution remains critical.

It noted that approved budgets in Nigeria often fail to translate into actual performance due to opaque fund releases and inadequate disclosure of execution reports.

The organisation acknowledged that the budget reflects an expansionary fiscal posture, with capital expenditure estimated at N32.28 trillion, representing 47.13 per cent of total spending and signalling the government’s commitment to infrastructure development and economic growth.

However, it warned that mounting debt obligations could significantly constrain the intended impact of such investments. Debt servicing is projected to gulp N15.8 trillion, accounting for about 23 per cent of total expenditure and nearly 45 per cent of anticipated revenue.