No More Extension Of Budget Implementation Into Another Year, FG Warns

…Finance Minister Vows To Recover All Govt Funds Outside CBN

The Federal Government has announced that it will put an end to the long-standing practice of extending the implementation of national budgets into subsequent fiscal years, a move aimed at restoring discipline and clarity to public finance management.

The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, disclosed this on Monday night during a panel session titled “The Reform Imperative: Building a Prosperous and Inclusive Nigeria by 2030” at the ongoing 31st Nigerian Economic Summit in Abuja.

According to Edun, the government has reached an agreement with the National Assembly to ensure that future budgets are fully implemented within the approved fiscal year.

“We have agreed that there will be no more budget extensions into the following year,” he stated. “This has caused unnecessary confusion in the system, and we are restoring order by ensuring that the fiscal calendar is properly observed.”

The minister explained that the new budget discipline framework is part of broader reforms aimed at improving fiscal responsibility, transparency, and efficiency in government operations.

Edun also revealed that the government is recalibrating its borrowing mix to reduce exposure to external loans, particularly Eurobonds, in favor of more sustainable and locally beneficial financing options.

“Our focus is shifting to instruments like sukuk, green bonds, and diaspora bonds,” he said. “These options not only deepen our domestic investor base but also support projects that align with our sustainable development goals.”

Highlighting efforts to improve financial visibility, the minister disclosed that the government only recently gained a complete picture of its accounts with the Central Bank of Nigeria (CBN).

“Until August 1, we did not have full visibility of all federal government accounts with the CBN,” he revealed. “Now, we are determined to bring every kobo of government funds into view. A lot of money still lies outside the CBN system, and we are committed to recovering all of it.”

To strengthen accountability, he added, a new federal billing system has been introduced to track government payments and ensure that all transactions are traceable from start to finish.

On inflation management, Edun said government action began with bold fiscal reforms such as the removal of fuel subsidy and exchange rate unification.

These, he noted, have significantly improved revenue inflows and expanded the fiscal space available to all tiers of government.

“The removal of fuel subsidy and exchange rate reforms have freed up resources equivalent to about five percent of GDP, which now go into the Federation Account,” he explained.

“As a result, state allocations have surged by over 111 percent — the states are now financially empowered to drive development.”

In her contribution, the Director-General of the Debt Management Office (DMO), Ms. Patience Oniha, emphasized that while Nigeria’s debt profile continues to attract public attention, the real concern is not the size of the debt but the ratio of debt service to government revenue.

“Our debt-to-GDP ratio is about 40 percent, well below the 70 percent threshold set by the World Bank and IMF for economies like Nigeria’s,” Oniha said. “The challenge lies in how much of our revenue goes into debt servicing that’s what constrains our ability to fund critical projects.”

She stressed the need for stronger revenue mobilization to make debt servicing more manageable and ensure that public funds are directed toward infrastructure, education, and other national priorities.

“As revenues grow, the debt service-to-revenue ratio will decline,” Oniha noted. “That will not only ease borrowing pressure but also provide the government with more fiscal space to implement development programmes effectively.”

Oniha added that all debt servicing provisions are captured within the Medium-Term Expenditure Framework (MTEF) and annual budgets to maintain transparency and predictability in Nigeria’s fiscal planning.

Despite current economic pressures, she expressed optimism that ongoing reforms and improved revenue performance — both from oil and non-oil sectors — will gradually reduce the debt burden and strengthen macroeconomic stability.