The Nigerian Senate has approved another extension of the implementation period for the capital component of the 2025 Appropriation Act, moving the deadline from September 30 to December 31, 2026.
The decision gives Ministries, Departments and Agencies (MDAs) an additional three months to complete ongoing capital projects and utilise funds that have already been appropriated and released.
The extension followed the passage of the Appropriations (Repeal and Enactment) Act 2025 Amendment Bill 2026, sponsored by Senate Leader Opeyemi Bamidele.
The bill, numbered SB 1067, was considered by the Senate Committee of Supply before being passed by the chamber following clause-by-clause consideration.
Why the Senate approved the extension
Presenting the bill, Bamidele said the extension was necessary because several capital projects funded under the 2025 budget had not reached completion despite funds having been appropriated and released.
He explained that capital projects typically involve multiple stages, including procurement, contract execution, mobilisation, certification and payment, which can make completion within a fixed period difficult.
According to him, allowing the September 30 deadline to expire could create difficulties for MDAs implementing projects that were already at various stages of execution.
He said the additional period would provide the necessary legal and administrative window for government agencies to complete projects while ensuring that previously appropriated funds are properly utilised.
Bamidele also stressed that the amendment does not create new projects or a fresh appropriation. MDAs are expected to continue operating within the existing appropriation, financial regulations, procurement laws and other applicable legislation.
Senate seeks completion of ongoing projects
Senate President Godswill Akpabio supported the extension, saying it would help prevent projects from being abandoned because of outstanding payments or incomplete contractual obligations.
Akpabio said contractors involved in projects under the 2025 Appropriation Act should be given the opportunity to complete their work where funds had already been provided.
He urged the relevant authorities to use the additional three months to settle outstanding obligations and move ongoing infrastructure projects towards completion.
The Senate’s position was that allowing the implementation period to expire while projects remained incomplete could result in public resources already committed to those projects not delivering their intended value.
Fourth extension of 2025 capital budget
The latest decision represents the fourth extension of the implementation timeline for the capital component of the 2025 budget.
The original implementation period was due to expire at the end of 2025. It was subsequently extended to March 31, 2026, then to June 30, and later to September 30.
The latest amendment now keeps the capital component of the 2025 budget open for implementation until December 31, 2026.
The repeated extensions have also kept attention on the pace of budget execution and the issue of overlapping budget cycles.
During the debate, Senate Chief Whip Tahir Monguno raised concerns about delays linked to the centralised payment system operated through the Office of the Accountant-General of the Federation. He called for a review of the system, arguing that implementation bottlenecks could continue to lead to requests for extensions.
Government agencies given additional time
With the new deadline, MDAs now have until December 31 to complete eligible capital projects and utilise funds already released under the 2025 appropriation.
The extension is expected to cover projects that are already funded and at various stages of implementation rather than introducing new projects.
The measure is also intended to allow government agencies to settle outstanding contractual obligations and improve the level of completion of projects captured under the 2025 capital budget.
The Senate has emphasised that expenditures during the extended period must remain subject to existing fiscal, procurement and accountability requirements.
