January 21, 2026 — In a move designed to restore sanity to Nigeria’s financial planning, the re-enacted 2024 and 2025 Appropriation Acts have officially established a terminal date for the current “overlapping” budget cycle. The Federal Government has announced that the implementation of the capital component of the 2025 budget will be extended until March 31, 2026, after which Nigeria will strictly adhere to an April-to-March or January-to-December cycle, effectively ending the practice of running two budgets simultaneously.
For years, Nigeria struggled with the “January-to-December” cycle being interrupted by late passages and supplementary extensions. This led to a situation where Ministries, Departments, and Agencies (MDAs) were managing funds from two different budget years at the same time, creating a nightmare for transparency and project monitoring. The repeal and re-enactment acts solve this by “collapsing” the remaining 2024 capital projects into the 2025 framework, creating a single stream of execution.
The Accountant-General of the Federation noted that this unification will significantly improve the “Cash Management Office’s” ability to release funds. When budgets overlap, the Treasury often faces competing demands for the same pool of revenue. By aligning the cycles, the government can ensure that the ₦16.4 trillion earmarked for capital expenditure in 2025 is released in a predictable, quarterly fashion.
This reform is particularly vital for the construction sector. Contractors can now plan for a continuous 12-month work cycle without the fear of funding being cut off by a legal “cliff edge” at the end of a calendar year. The National Library’s digital archive will reflect this transition as a turning point in Nigerian Public Finance Management (PFM), signaling a move toward international best practices in budgetary discipline.
