President Bola Tinubu has declared a definitive end to Nigeria’s longstanding practice of operating multiple, overlapping budgets, setting a deadline of March 31, 2026. From April 2026, the nation will transition to a single, unified annual budget supported by a single revenue cycle—a move heralded as a major step toward fiscal discipline and transparency.
By Naomi Sharang
Abuja, Dec. 19, 2025 (NAN)
President Bola Tinubu made this landmark announcement while presenting the N58.18 trillion 2026 Appropriation Bill, titled “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” to a joint session of the National Assembly.
In a candid address, the President framed the policy shift as the result of difficult but necessary research. “Avoiding abandoned projects, unpaid contractual obligations and running a multiple budget, both inherited and of fulfilled mandates, is a problem staring the nation in the face,” Tinubu stated. “So we are terminating the habit of running through a budget on one inflow.”
Understanding the “Multiple Budget” Problem
The President’s declaration targets a chronic issue in Nigerian public finance. A “multiple budget” system occurs when capital projects and liabilities from previous fiscal years remain unfunded and are carried over into new budget cycles. This creates a complex web of overlapping financial commitments, where the government is simultaneously trying to execute the current year’s budget while settling debts for projects approved years earlier. The result is often a severe strain on cash flow, leading to the abandoned projects and unpaid contractors Tinubu cited. This rollover culture has historically blurred accountability, hampered long-term planning, and eroded public trust in the budget process.
The New Single-Cycle Framework
Tinubu outlined a clear two-phase transition:
1. The Clean-Up Phase (Until March 31, 2026): All outstanding capital liabilities from previous years will be identified, fully funded, and formally closed. This is essentially a fiscal house-cleaning exercise to settle legacy debts.
2. The New Regime (From April 2026): Nigeria will operate on a strictly annual, single budget. The budget presented and passed for a given fiscal year will be the only one in operation, backed by a synchronized revenue cycle. “No overlaps, no excuses and no rollover cultures,” the President emphasized.
He positioned the 2026 budget as the pivotal instrument for this change, calling it “a defining moment in our national journey of reform and transformation.” He acknowledged the significant hardship caused by earlier economic reforms but asserted the nation had “turned the corner,” citing an economic growth rate of 3.98% in Q3 2025, up from 3.86% in the same period in 2024.
Broader Context and Legislative Reception
The President’s speech positioned the single-budget policy as the capstone of a two-and-a-half-year effort to tackle structural economic weaknesses and build a foundation for “a more resilient, inclusive and dynamic Nigeria.” The goal, he stated, is to lock in macroeconomic stability and ensure growth translates to jobs and better living standards.
In his welcome address, Senate President Godswill Akpabio provided political context, noting that the collaborative relationship between the National Assembly and the Executive is sometimes viewed critically by the public. He defended the partnership, arguing that “nations advance when the Executive and the Legislature work in concert.” He elevated the significance of the 2026 bill, describing it as “a statement of intent—a reflection of priorities, a record of difficult choices, and a roadmap for the next phase of Nigeria’s national renewal.”
The success of this ambitious fiscal overhaul will depend on stringent implementation, sustained political will, and robust revenue generation to match the single budget’s ambitions. If executed effectively, it could mark a historic shift towards greater predictability and accountability in Nigeria’s public financial management. (NAN) (www.nannews.ng)
NNL/BRM
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Edited by Bashir Rabe Mani
