By Anthony Otaru, Abuja
Mounting concerns over Nigeria’s public finance management have greeted the implementation of the 2025 Appropriation Act, as lawmakers, economists and civil society organisations warn that persistent delays and weak capital spending threaten the country’s economic recovery and development trajectory.
The criticism comes against the backdrop of Nigeria’s deepening fiscal strain, rising public debt, weak revenue mobilisation, and ongoing reforms under President Bola Tinubu’s administration aimed at stabilising the economy after the removal of the fuel subsidy and the unification of the exchange rate.
Stakeholders say the 2025 budget—despite its ambitious size and reform-driven objectives—has suffered severe execution setbacks, particularly in its capital component, with less than 40 per cent reportedly implemented several months into the fiscal year.
The slow pace of implementation has compelled the Federal Government to issue a directive to Ministries, Departments and Agencies (MDAs) to roll over about 70 per cent of unspent 2025 capital allocations into the 2026 budget cycle.
The move, officials say, reflects weak revenue inflows, delayed fund releases and low project uptake, forcing the government to prioritise the completion of existing projects over the initiation of new ones.
The ₦54.9 trillion 2025 budget, tagged “Budget of Restoration: Securing Peace, Rebuilding Prosperity,” was designed to signal a reset in fiscal governance and economic management.
It allocated about 32 per cent to debt servicing, 30 per cent to capital expenditure, 28 per cent to recurrent spending, and roughly 9 per cent to statutory transfers, with infrastructure, security, and human capital development identified as key drivers of growth.
However, analysts argue that the government’s reform narrative is being undermined by structural weaknesses in budget execution.
According to them, running extended 2024 budgets alongside the 2025 fiscal plan has created fiscal congestion and blurred accountability.
Economic experts, including Professors Sheriffdeen Tella and Ken Ife, development advocate Eze Onyekpere, financial analyst Godwin Ighedosa and investment banker Chijoike Ekechukwu, told ThisNigeria that unrealistic revenue projections, weak non-oil revenue performance, inflation-driven cost overruns, procurement bottlenecks and political interference have combined to stall capital projects nationwide.
The Chief Executive Officer of Dignity Finance & Investment Ltd, Chijoike Ekechukwu, described the delayed execution of the 2025 budget as “fiscal indiscipline,” warning that it increases contractors’ exposure to debt, fuels non-performing loans in the banking sector and encourages year-end rush spending that often leads to waste and corruption.
Prof Ken Ife criticised the practice of running multiple budgets simultaneously, including supplementary appropriations, describing it as “fiscal disorder” that weakens constitutional budgeting processes and makes credible performance monitoring impossible.
Similarly, Prof Sheriffdeen Tella attributed the poor execution of capital projects to weak fiscal discipline, delayed cash backing and ineffective oversight, noting that budget credibility depends not on size but on timely and efficient implementation.
The stakeholders warned that if urgent corrective measures are not taken, the consequences could include widespread abandonment of critical infrastructure projects such as roads, schools and hospitals, worsening unemployment, declining investor confidence and heightened fiscal uncertainty.
They stressed that without reforms to address revenue realism, budget discipline and execution efficiency, Nigeria risks repeating a cycle of rolled-over budgets, distorted spending priorities and deepening economic hardship for citizens.
