Economic experts have warned the Federal Government against allowing the preparation of the 2027 Appropriation Bill to overshadow concerns over the implementation of previous budgets, calling for greater transparency in public spending and a comprehensive account of outstanding commitments.
They said while the preparation of the 2027 budget was necessary, the government must explain how much of the 2025 and 2026 budgets had been implemented, how much had been released and spent, and what remained outstanding.
The concerns come as the Budget Office of the Federation advances preparations for the 2027–2029 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), amid the continued implementation of the 2025 and 2026 budgets.
In July 2026, the Budget Office concluded the draft 2027–2029 MTEF and FSP. It subsequently issued a circular dated September 4, setting 4 p.m. on September 18 as the deadline for Ministries, Departments and Agencies (MDAs) to submit their 2027 personnel-cost proposals.
The preparations are part of the groundwork for presenting the 2027 budget to the National Assembly, expected in October, even as concerns persist over overlapping budget implementation periods.
The International Monetary Fund (IMF) and the World Bank have, in their respective assessments, highlighted weaknesses in Nigeria’s budget execution and fiscal management, including delays in budget passage, overlapping implementation periods, inadequate cash releases, weak reconciliation of arrears, off-budget expenditure and limited public reporting.
Although an Appropriation Act generally applies to the financial year for which it is enacted, questions have continued to arise over the practice of extending budget implementation periods and the implications for fiscal accountability.
The Constitution does not appear to impose an absolute prohibition on the National Assembly extending, amending, repealing or reenacting an Appropriation Act. The Budget Office has relied on Sections 80–84 of the Constitution to argue that a valid legislative extension remains lawful until the extended expiration date.
The central concern, therefore, is whether such extensions remain exceptional measures to fulfil legitimate outstanding obligations or become a routine substitute for timely budgeting and effective implementation.
Speaking on the issue, economist and investment banker, Adegboyega Adebajo, said the government should proceed with preparations for the 2027 budget but accompany the process with a clear framework for managing the transition between budget cycles and clearing outstanding obligations.
According to him, waiting until every naira appropriated in 2025 and 2026 has been spent before preparing the next budget would make annual fiscal planning impracticable.
“A sovereign government must budget prospectively. Waiting until every naira appropriated in 2025 or 2026 has been spent before preparing a 2027 estimate would make annual fiscal planning impossible — budget execution is not, and should not be treated as, a condition precedent to preparing the next budget,” he said.
Adebajo explained that the 2027 budget was necessary to establish the government’s macroeconomic and fiscal framework for the year, authorise new expenditure, plan debt servicing, salaries, transfers and statutory obligations, and provide continuity for multi-year infrastructure and development programmes.
He added that the budget would also enable the government to align expenditure with projected revenue and financing requirements and prevent the country from operating without a current appropriation.
However, he warned that preparing a new budget must not become a means of concealing poor implementation of previous appropriations.
“What is not prudent, however, is maintaining overlapping budgets without a transparent reconciliation of commitments, releases, arrears and actual outcomes,” he said.
Adebajo called on the government to publish an audited reconciliation of the 2025 and 2026 budget cycles before presenting the 2027 proposal to the National Assembly.
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