The House of Representatives has approved the extension of
the implementation of the capital component of the 2025 budget to March 31,
2026.
This followed the passage of the 2024 and 2025 Appropriation
(repeal and re-enactment) Bills.
Last week, President Bola Tinubu transmitted the bills to
the national assembly, saying they would allow the full release of capital
implementation funds to all ministries, departments, and agencies (MDAs).
The first bill sought to repeal the 2024 Appropriation Act
of N35,055,536,770,218 and re-enact by authorising the issuance from the
consolidated revenue fund of the federation of the total sum of
N43,561,041,744,507, comprising N1,742,786.788,150 for statutory transfers,
N8,270,960,606,831 for debt service, N11,268,513,380,853 for recurrent
(non-debt) expenditure, and N22,278,780,968,673 for capital
expenditure/development fund contributions for the year ending December, 31,
2025.
The second bill proposed repealing the 2025 Appropriation
Act of N54,990,165,355,396 and re-enacting it by authorising the issuance from
the consolidated revenue fund of the federation of the total sum of
N48,316,242,591,785, comprising N3,645,761,358,925 for statutory transfers,
N14,317,142.689,548 for debt service, N13,588,009,682,673 for recurrent
(non-debt) expenditure, and N16,765,328,860,640 for capital
expenditure/development fund contribution for the year ending March, 31, 2026.
The lower legislative chamber considered and passed the
president’s request during Tuesday’s plenary following the adoption of a report
by Abubakar Bichi, chairman of the committee on appropriation.
Bichi told the lawmakers that the committee met with the
economy team of the president, comprising Wale Edun, minister of finance; Atiku
Bagudu, minister of budget and economic planning; and Tanimu Yakubu,
director-general of the budget office of the federation, to obtain insight into
the justification for the repeal and enactment of the 2024 and 2025
Appropriations Act.
Bichi said the repeal and re-enactment of the 2025 budget will balance responsiveness with fiscal responsibility, ensuring that urgent expenditures do not weaken legislative oversight or undermine fiscal freedoms.
He explained that the sum of N16.76 trillion was reduced
from the capital allocation and rolled over to 2026 fiscal year due to funding
constraints.
“The initiative is expected to make the budget effective,
reducing the expenditure of the governance, giving the anticipated increase in
revenue-generating properties in the next fiscal year,” he said.
Bichi admitted that the practice of rolling budget cycles,
such as extending the implementation of the 2024 Appropriation Act deep into
2025 while the 2025 budget is in force, undermines budget clarity and weakens
fiscal discipline.
After the report was presented, the house considered the
bills clause by clause, approved them, and passed them for third reading.
The green chamber subsequently adjourned plenary until
January 27.
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