BudgIT, a leading civic-tech organisation advocating for transparency and accountability in public finance, has expressed concern over the Federal Government’s recent decision to defer the implementation of 70% of capital projects initially appropriated in the 2025 fiscal year to 2026. The deferment, announced through the Federal Ministry of Budget and Economic Planning, aims to restructure the sequencing of projects, prioritise critical interventions, and improve the efficiency of public spending.
While the move is intended to prevent the launch of multiple low-priority projects and reduce the incidence of abandoned initiatives, BudgIT cautions that the success of this approach depends on rigorous adherence to budget timelines, proper fiscal closure, and transparent implementation processes.
BudgIT noted that previous budgeting cycles in Nigeria have suffered from overlapping fiscal years, with capital projects from one year often extending into the next, causing inefficiencies, bloated expenditures, and reduced accountability. The organisation highlighted that the 2024 Appropriation Act and its supplementary budget extended well into 2025, with the 2025 budget primarily funding recurrent expenses such as personnel and overhead costs rather than capital projects.
The deferment presents an opportunity for the Federal Government to address long-standing challenges in project implementation, but BudgIT emphasises the need for clarity and discipline in executing the carried-forward projects. “Deferring 70% of capital projects is neither a solution nor a setback on its own. What matters is whether this decision marks a clear break from the cycle of bloated budgets, overlapping fiscal years, and weak project implementation,” said Vahyala Kwaga, BudgIT’s Deputy Country Director.
BudgIT also urged strict compliance with the government’s “Bottom-Up Cash Plan,” which ensures that funds are disbursed directly to verified contractors, reducing leakages and improving accountability. The organisation called on the Ministry of Finance, the Budget Office of the Federation, relevant MDAs, the Bureau of Public Procurement, and the Presidency to uphold transparency, legal compliance, and effective management of public funds.
Looking ahead, BudgIT stressed that the deferment should serve as a turning point for Nigeria’s budget process. With proper planning, timely reporting, and disciplined project execution, the government can ensure that capital investments deliver tangible benefits, strengthen public trust, and set a new standard for fiscal responsibility in the country.
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