Economic experts warn that while the Federal Government must move ahead with the 2027 Appropriation Bill, it should not let this process eclipse the need for clear reporting on how the 2025 and 2026 budgets were executed, including the amount released, spent and still pending.
**Key facts**
- The Budget Office of the Federation (BOF) finished drafting the 2027‑2029 Medium‑Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) in July 2026.
- A circular dated 4 September set a 4 p.m. deadline on 18 September for all Ministries, Departments and Agencies (MDAs) to forward their 2027 personnel‑cost proposals.
- The 2027 budget is slated for presentation to the National Assembly in October.
- The International Monetary Fund and the World Bank have both flagged weak budget execution, delayed cash releases and off‑budget spending in their recent reviews.
- Economist and investment banker Adegboyega Adebajo stresses that waiting for every naira from previous budgets to be spent before drafting the next one would cripple annual fiscal planning.
What are the main concerns?
Stakeholders argue that the government must disclose how much of the 2025 and 2026 appropriations have been implemented, the volume of funds already released, and the balance that remains outstanding. Without this transparency, overlapping budget cycles could mask fiscal weaknesses.
How is the 2027 budget being prepared?
The BOF’s work on the MTEF and FSP forms the technical backbone for the upcoming budget. Ministries are required to submit personnel‑cost proposals by the September deadline, after which the BOF will consolidate the figures for the budget that will be tabled before the National Assembly later this year.
What do international assessments say?
Both the IMF and the World Bank have highlighted persistent challenges in Nigeria’s fiscal management, citing delayed budget passage, overlapping implementation periods, insufficient cash releases, poor arrears reconciliation, off‑budget expenditures and limited public reporting.
What is the constitutional stance on extending budgets?
The Nigerian Constitution does not expressly forbid the National Assembly from extending, amending, repealing or reenacting an Appropriation Act. The BOF relies on Sections 80‑84 of the Constitution to argue that a legislative extension remains lawful until the newly set expiration date.
What does the economist recommend?
Adegboyega Adebajo advises that the government should continue with the 2027 budget preparations but pair them with a transparent framework for transitioning between budget cycles and clearing existing obligations. He warns against using a new budget as a cover for poor execution of prior appropriations and calls for an audited reconciliation of the 2025 and 2026 budget cycles before the 2027 proposal reaches the National Assembly.
> “A sovereign government must budget prospectively. Waiting until every naira > appropriated in 2025 or 2026 has been spent before preparing a 2027 estimate > would make annual fiscal planning impossible,” Adebajo said.
The economist stresses that the 2027 budget is essential for setting the macro‑economic and fiscal direction, authorising new spending, planning debt service, salaries, transfers and statutory duties, and ensuring continuity for multi‑year infrastructure projects. However, he cautions that overlapping budgets without a clear reconciliation of commitments, releases, arrears and outcomes would be imprudent.
In summary, experts call on the government to publish an audited reconciliation of the 2025‑2026 budget cycles before the 2027 budget is presented, thereby enhancing fiscal accountability and public confidence.