The Director General of the Budget Office of the Federation, Dr. Tanimu Yakubu, has clarified that the Federal Government’s concurrent operation of three budget instruments is not irregular but allowed within the nation’s legal framework.
Dr. Tanimu issued the clarification on Thursday following public criticism over the National Assembly’s second extension of the 2024 budget.
In a detailed statement titled “Why Nigeria is running multiple budgets,” he emphasized that similar budget practices are observed in countries like India, Indonesia, and Kenya.
“Nigeria is currently operating three budget instruments at once: the 2024 Main Appropriation Act, the 2024 Supplementary Budget, and the 2025 Appropriation Act,” he explained. “While this may raise eyebrows, it is not a fiscal anomaly. It reflects the real-world overlap between budget law, execution delays, and system-wide reform efforts.”
He pointed out that the 2024 Appropriation Act, which was signed into law in January 2024, is still in effect and will remain so until December 31, 2024, unless formally repealed or further extended.
“It is the primary legal framework for federal spending in 2024 and remains active, especially for capital projects, statutory obligations, and contracts tied to 2024 project codes,” he stated.
He also explained the role of the 2024 Supplementary Appropriation Act, which was introduced mid-year to accommodate urgent national needs.
“It was designed to address: Escalating security and humanitarian demands; Revenue windfalls or reallocations; Emerging economic shocks and sectoral urgencies not accounted for in the main budget,” Tanimu said. “As is standard in public finance, a supplementary budget amends or extends the main budget. It runs concurrently, not as a duplicate, but as a legal and fiscal continuation.”
On the 2025 Appropriation Act, which was signed before the close of 2024 in line with efforts to preserve the January–December budget calendar, Dr. Tanimu noted ongoing challenges with implementation.
“Execution of the 2025 budget coexists with: Unspent but already committed capital allocations from 2024; Procurement delays and disbursement lags; Multi-year or donor-funded projects that legally span two or more fiscal years,” he said.
He stressed that this scenario is not exclusive to Nigeria, citing examples from other developing economies.
“In India, Indonesia, and Kenya, similar overlaps occur as governments reconcile planning cycles with execution realities,” he explained.
He further noted that relevant laws and regulations, such as the Finance Act, Appropriation Act clauses, and Central Bank circulars, legally back this framework by permitting, “Rollover of capital releases across fiscal years; Cash-flow bridging to support early implementation of new budgets; Parallel accounting for complex or externally-financed infrastructure and social programs.”
Dr. Tanimu concluded by underscoring the strategic intent behind the practice.
“Rather than contradiction, this arrangement is an example of institutional flexibility in managing fiscal transitions,” he asserted. “The presence of multiple concurrent budgets does not imply fiscal confusion. It reflects a performance-based, transitional budget system where: The 2025 budget is being implemented in earnest, while residuals from the 2024 and Supplementary Budgets are lawfully closed out and disbursed. This is part of building a more agile and accountable public finance framework. The real issue is not the existence of three budgets, but the coordination and transparency of their execution.”
