NASS Moves to Curb Budget Rollover, Demands Fresh Spending Authority for 2025

The National Assembly has intensified efforts to check Nigeria’s recurring budget rollover, directing the Federal Government to suspend contract award circulars for the 2025 fiscal year until new approvals are issued.

At a joint session on Thursday, the Senate and House Appropriations Committees resolved that ministries and agencies must wait for the Authority to Incur Expenditure before commencing implementation of the 2025 capital budget.

Senator Solomon Olamilekan Adeola (Ogun West), chairman of the Senate Appropriations Committee, said the resolution would prevent confusion in capital project funding.

“Capital component of the 2024 budget will continue till December 31st, 2025. The implementation of capital component of 2025 budget will commence as soon as possible as Authority to Incur Expenditure should be issued within seven days after this session with the economic team.

Circulars issued by the Ministry of Finance to the MDAs should be withdrawn pending issuance of AIE,” he announced.

Nigeria has long struggled with overlapping budget cycles, with capital projects routinely spilling into subsequent years.

Lawmakers say the new directive is designed to tighten fiscal discipline and ensure smoother project execution at a time of high inflation and mounting debt.

The session was attended by Finance Minister Wale Edun, Budget Minister Atiku Bagudu, Accountant-General of the Federation Samsudeen Ogunjimi, and Budget Office DG Tanimu Yakubu.

The meeting later went behind closed doors, with no open disagreement from the executive.