‎Nigeria 2025 budget: BudgIT demands major reforms as FG defers 70% of capital projects to 2026‎

‎By Chioma Obinagwam
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‎Leading transparency watchdog BudgIT has urged sweeping reforms to Nigeria’s budgeting system following the Federal Government’s directive to defer 70 percent of 2025 capital projects to 2026, cautioning that the move could merely delay inefficiencies without fundamental changes to fiscal discipline and transparency.
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‎Confiance News gathered from a statement issued by Budget on Sunday.
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‎The civic-tech organization, known for advocating accountability in public finance, welcomed aspects of the deferment announced by the Ministry of Budget and Economic Planning but expressed reservations. BudgIT sees the policy as an opportunity to prioritize ongoing projects, reduce abandoned initiatives, and improve resource allocation amid revenue shortfalls—potentially restoring credibility to the budgeting process.
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‎”The deferment indicates an intent to restructure capital project sequencing, carrying forward existing 2025 initiatives rather than starting anew,” BudgIT stated. If well-executed, it could address Nigeria’s persistent issues with overlapping fiscal years and bloated budgets.
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‎Confiance News learnt that BudgIT has long highlighted systemic flaws, including delays in budget calendars, concurrent implementation of multiple years’ programs, and unchecked insertions of low-priority projects that inflate debt without delivering value. The absence of detailed capital expenditure reports further hampers public oversight.
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‎Recent extensions of 2024 capital spending into 2025—and now beyond—exemplify these problems, with only recurrent costs like salaries fully executed this year. The “provisional” Q4 2024 report underscores the need for proper fiscal closure to maintain transparency.
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‎BudgIT insists the Executive must vigorously defend the deferment at National Assembly sessions, proving it ends overlapping budgets. It also criticized legislative amendments that often bloat proposals, abusing constitutional powers.
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‎Deputy Country Director Vahyala Kwaga emphasized execution: “Deferring 70% of capital projects is neither a solution nor a setback on its own. What matters is whether this decision marks a clear break from the cycle of bloated budgets, overlapping fiscal years, and weak project implementation. Without strict adherence to timelines, proper closure, and transparent processes, we risk postponing inefficiencies rather than resolving them.”
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‎The group pushed for full implementation of the “Bottom-Up Cash Plan,” enabling direct payments to verified contractors for greater efficiency. It called on the Ministries of Finance and Budget, Budget Office, Bureau of Public Procurement, relevant agencies, and President Bola Ahmed Tinubu to champion transparency and accountability.
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‎Confiance News reports that BudgIT also rallied citizens, civil society, private sector, and media to monitor capital spending closely, stressing that effective public investment benefits all Nigerians.