Senate Delays 2025 Capital Budget Implementation Until September

• Third extension in six months as MDAs struggle to utilise released funds

• Lawmakers cite procurement delays, outstanding obligations, ongoing projects

• Akpabio says move necessary to ensure accountability, value for money

Senate on Thursday approved a fresh three‑month extension of the implementation period for the capital component of the 2025 Appropriation Act. The deadline was moved from 30 June 2026 to 30 September 2026, a step intended to salvage ongoing projects and allow ministries, departments and agencies (MDAs) to fully utilise funds already released by the federal government.

The decision followed the adoption of a motion sponsored by Senate Chief Whip Senator Tahir Munguno and marked the third extension granted to the capital component of the 2025 budget.

The National Assembly had earlier extended the implementation period from 31 December 2025 to 31 March 2026, and then from 31 March to 30 June 2026 before Thursday’s latest shift to 30 September.

With the extension, MDAs will have an additional three months to complete ongoing capital projects, process outstanding payments, and meet contractual obligations tied to projects captured in the 2025 fiscal plan.

During the debate, Munguno said the extension became imperative because a substantial portion of funds released for approved projects and programmes had yet to be utilised due to procurement timelines, project execution challenges, and other administrative bottlenecks.

He noted that several strategic projects across key sectors of the economy are already at advanced stages of implementation and require additional time for completion, certification and payment.

Munguno warned that allowing the implementation window to lapse at the end of June could result in the abandonment of critical projects, waste public resources already committed to them, and disrupt ongoing government interventions.

He also expressed concern that some projects contained in the 2025 budget might not be reintroduced in future appropriation cycles, thereby creating funding gaps and undermining national development objectives.

He said extending the validity of the capital component would promote efficient utilisation of public funds, improve budget performance and support economic growth.

“The Senate is convinced that granting a further extension of the implementation period is in the national interest and will ensure value for money in public expenditure,” he said.

Chairman of the Senate Committee on Appropriations, Senator Olamilekan Adeola, who seconded the motion, said although payment for some capital projects had commenced, numerous obligations remained outstanding.

Adeola recalled that President Bola Tinubu had earlier informed the National Assembly that only about 30 per cent of the funds required for the outstanding 2025 capital commitments would be accommodated through the rollover arrangement, while the balance would be reflected in the 2026 budget framework.

“Payment has commenced, but we still have a lot of outstanding obligations to settle,” he said, urging lawmakers to support the extension.

In his remarks, President of the Senate Senator Godswill Akpabio said the decision was consistent with the constitutional responsibility of the National Assembly to ensure effective implementation of the budget and prudent management of public resources.

Akpabio recalled that when Tinubu presented the budget, it was envisaged that only a portion of the capital expenditure would be fully implemented within the approved timeframe, while the balance would be accommodated through subsequent budgetary provisions.

He stated that implementation challenges had earlier necessitated the extension of the capital component to 30 June 2026, but said outstanding obligations still remained significant.

Akpabio said, “Although payments have commenced, a considerable number of obligations remain outstanding. It has therefore become necessary, in the interest of effective budget execution and accountability, to further extend the implementation period beyond 30 June 2026 to 30 September 2026.”

The senate president expressed confidence that the additional three‑month window would enable the government to settle all outstanding commitments under the affected component of the budget, while ensuring that implementation of projects under the subsequent fiscal cycle proceeded without disruption.

The latest extension underscores the persistent implementation challenges confronting federal capital budgets and highlights the government’s efforts to avoid project abandonment amid ongoing fiscal and administrative constraints.