The Director General of the Budget Office of the Federation, Dr. Tanimu Yakubu, has clarified that the Federal Government’s operation of multiple budgets is not a fiscal anomaly but a legally permitted and globally practiced approach to managing public finances.
His statement follows public concerns over the National Assembly’s recent decision to extend the implementation of the ₦13.1 trillion 2024 Budget to December 2025, alongside ongoing implementation of the 2025 Appropriation Act.
In a press release titled “Why Nigeria is Running Multiple Budgets,” Dr. Yakubu explained that Nigeria is currently operating three budget instruments simultaneously:
- The 2024 Main Appropriation Act
- The 2024 Supplementary Budget
- The 2025 Appropriation Act
“While this may raise eyebrows, it is not a fiscal anomaly,” Yakubu stated. “It reflects the real-world overlap between budget law, execution delays, and broader reform efforts. This is standard practice in countries like India, Indonesia, and Kenya.”
Why Multiple Budgets Exist
Dr. Yakubu broke down the rationale:
- The 2024 Appropriation Act, signed in January 2024, remains in force until December 31, 2024. It covers capital projects and legally committed obligations.
- The 2024 Supplementary Budget, passed mid-year, was introduced to address urgent security, humanitarian, and economic needs that emerged after the main budget was finalized.
- The 2025 Appropriation Act, though signed before the end of 2024 to maintain the January–December fiscal cycle, now coexists with unspent and legally committed funds from 2024.
Legal Framework and Precedents
Dr. Yakubu emphasized that this fiscal structure is backed by Nigerian law, including:
- Clauses in the Finance and Appropriation Acts
- Relevant Central Bank of Nigeria (CBN) circulars
- Guidelines that allow for:
- Capital rollovers into the next fiscal year
- Cash-flow bridging for early implementation of new budgets
- Parallel accounting for donor-funded or multi-year infrastructure projects
“The presence of multiple budgets does not imply confusion,” he noted. “Instead, it demonstrates institutional flexibility in managing complex fiscal transitions.”
A Modernized Budgeting Approach
The Budget Office described the situation as part of a shift toward a more agile, transparent, and accountable public finance system.
“The real issue is not the existence of three budgets,” Yakubu said, “but how well they are coordinated and executed. The 2025 budget is being implemented in earnest, while residual funds from 2024 and its Supplementary Budget are being lawfully closed out.”
