The 2024 budget allocated N19 trillion for capital expenditure out of N34 trillion, while the 2025 budget stands at N54.99 trillion with N23.96 trillion for capital projects.
The Director-General of the Budget Office, Dr. Tanimu Yakubu, has disclosed that the federal government is using revenue from the 2025 budget to finance the capital component of the 2024 budget. Speaking in Abuja during a stakeholders’ meeting on the 2025 capital budget, Yakubu said revenue projections for 2025 have been underperforming due to unmet oil production quotas.
In June, the National Assembly extended the implementation of the 2024 capital budget to December 31, 2025, to enable the completion of ongoing projects — its second extension since December 2024. The 2024 budget allocated N19 trillion for capital expenditure out of N34 trillion, while the 2025 budget stands at N54.99 trillion with N23.96 trillion for capital projects.
Finance Minister Wale Edun announced a ban on contract awards by MDAs without cash backing, requiring Warrants/AIEs as proof of funds before commitments. Accountant General Shamseldeen Ogunjimi warned against contract awards based solely on budgetary provisions without considering cash flow plans.
Umar Yakubu, Executive Director of CEFTPI, criticised the practice, calling it poor budgeting and a sign of fiscal irresponsibility. He warned it could weaken accountability and legislative oversight if allowed to persist.