The Senate and House of Representatives have approved another extension of the implementation period for the capital component of the 2025 Appropriation Act, moving the deadline from 30 September to 31 December 2026.
The Senate approved the extension on Tuesday following the passage of a bill sponsored by the Senate Leader, Senator Opeyemi Bamidele.
Moving the bill after clause-by-clause consideration, Mr Bamidele said the extension was necessary because the implementation of capital projects under the 2025 Appropriation Act had not reached optimal levels despite funds being released to MDAs.
The bill seeks to amend the 2025 Appropriation Act and extend the implementation period of its capital component from 30 September to 31 December 2026.
According to Mr Bamidele, the additional time would allow government agencies to complete ongoing projects and make use of appropriated funds.
The latest extension gives Ministries, Departments and Agencies an additional three months to complete ongoing capital projects and utilise funds already appropriated under the 2025 budget.
The extension, however, remains subject to presidential assent.
Reps approve same extension
The House of Representatives also approved the extension during Tuesday’s plenary.
The motion was moved by the House Leader, Julius Ihonvbere, extending the capital implementation period for the fourth time.
The latest decision means the 2025 capital budget, which was originally scheduled to expire on 31 December 2025, will now remain available for implementation until the end of 2026, subject to presidential assent.
How the budget deadline has shifted
The National Assembly had previously extended the implementation period to 31 March 2026, before moving it to 30 June and subsequently 30 September.
The latest extension pushes the deadline to 31 December 2026, giving federal agencies another three months beyond the September deadline to execute capital projects.
The move is intended to prevent the abandonment of ongoing projects and allow government agencies to meet outstanding obligations tied to the 2025 capital budget.
Overlapping budgets remain an issue
The latest extension comes against the backdrop of the Federal Government’s earlier commitment to end overlapping budget cycles.
While presenting the 2026 Appropriation Bill in December 2025, President Bola Tinubu said the government would move away from multiple overlapping budget cycles and operate within a single revenue cycle.
However, previous extensions of the 2025 budget have been justified on the grounds that additional time was needed to complete ongoing projects and ensure that appropriated funds were effectively utilised.
The latest extension therefore keeps the 2025 capital budget active while the country operates within the 2026 fiscal year.
For Nigerians, the extension means federal agencies have more time to complete capital projects already captured in the 2025 budget rather than allowing projects to lapse because of the expiration of the implementation window.
It also means that the actual delivery of projects will remain tied to how effectively MDAs utilise the additional period and how quickly contractors and government agencies execute outstanding works.
With the National Assembly’s approval, the 2025 capital budget will remain open for implementation until 31 December 2026, pending presidential assent.
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