The Federal Government is taking decisive steps to end the long-standing practice of running multiple budgets simultaneously, according to recent statements by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.
Speaking at the Nigerian Economic Summit in Abuja, Edun confirmed that the government has agreed with the National Assembly to stop extending budgets into the next fiscal year — a move aimed at restoring clarity and discipline to Nigeria’s budgetary process.
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Currently, several Appropriation Acts are being implemented at once, a situation that has fueled public criticism and confusion. While some government officials have defended the approach as a temporary transitional measure, the finance minister emphasized that the era of overlapping budgets is coming to an end.
“No more extensions of budgets into the next year, which has created so much confusion in the system. We have talked to the National Assembly, and we have agreed to restore normalcy in that space,” Edun declared.
Dr. Tanimu Yakubu, Director-General of the Budget Office of the Federation, had earlier described the ongoing practice as a “transitional budget system,” backed by fiscal laws designed to ensure the completion of capital projects. However, Edun’s latest statement signals a policy shift toward greater fiscal order and accountability.
New Fiscal Direction and Borrowing Strategy
The minister also provided insight into the government’s future borrowing plans. Instead of relying heavily on Eurobonds, the Federal Government intends to explore alternative financing instruments such as Sukuk, Green Bonds, and Diaspora Bonds.
Edun noted that transparency within the Federation Account has significantly improved, revealing that it took until August this year for the government to have a full view of its accounts with the Central Bank of Nigeria (CBN). He added that a new federal billing system has been implemented to monitor payments for goods and services across ministries.
“We are determined to bring all Federal Government funds into visibility. There is a lot of FG’s money lying outside of the CBN,” he said.
Focus on Productivity and Inflation Control
Addressing economic reforms, Edun explained that the Federal Government’s fiscal strategy is now focused on spending prioritization and productivity-enhancing sectors. He noted that the government’s earlier reforms — including exchange rate unification and fuel subsidy removal — have freed up about five percent of Nigeria’s GDP, boosting the Federation Account allocations.
According to Edun, the resulting revenue inflows have increased allocations to states by approximately 111 percent, leaving them “awash with cash.”
He also stated that fiscal authorities have been leading the charge in fighting inflation by aligning public spending with productive investments and ensuring financial discipline across all government tiers.
Conclusion
The Federal Government’s move to phase out multiple budgetary operations marks a significant step toward restoring order, transparency, and accountability in Nigeria’s fiscal management. With new borrowing frameworks and improved financial visibility, the administration aims to lay a stronger foundation for a stable and prosperous economy by 2030.
