The Federal Government of Nigeria has announced that approximately 70% of the 2025 budget will be rolled over into 2026. This revelation was made by the Minister of Finance and coordinating Minister of the Economy, Wale Edun, during a meeting with the Senate Committee on Finance. The meeting, which took place on December 15, 2025, aimed to discuss the 2026-2028 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP).
According to Edun, the 2024 budget had been extended and largely implemented, with a focus on capital expenditure. However, only 30% of the 2025 budget has been fully funded, necessitating the rollover of the remaining 70% into 2026. The minister attributed this to revenue estimates rising from 20 trillion in 2024 to 40 trillion in 2025, despite the government’s revenue far exceeding actual collections.
Edun emphasized the need to shift focus from borrowing to revenue generation, stating that “there has been a yeoman’s job in revenue mobilisation, but we need a more robust revenue optimisation programme for 2026.” He also noted that the economy requires mass savings and productive investment to grow.
The Accountant-General of the Federation, Babatunde Ogunjimi, confirmed that arrangements have been made to clear outstanding 2024 obligations, with indigenous contractors having been paid up to 80%. However, lawmakers raised concerns over budget implementation, with Senator Danjuma Goje questioning the continued non-implementation of constituency projects despite claims that revenue targets for 2025 had been met.
In response to these concerns, Edun explained that the rollover is designed to prevent repeated budget extensions and ensure that 2026 operates as a single budget year. He also noted that while non-oil revenue has performed relatively well, oil revenue remains a challenge, requiring flexibility in spending commitments.
The Senate Committee on Finance has announced the constitution of a three-man committee to work with the President’s economic team to fast-track the release of payments to indigenous contractors. The committee will also rigorously interrogate the assumptions underpinning the MTEF to ensure fiscal discipline and realistic projections. The development is significant, as it highlights the government’s efforts to manage its finances and prioritize outstanding obligations.
