Nigeria 2027 Budget: FG Faces Scrutiny Over Unfinished Projects
By Akin Alade
The Federal Government’s decision to commence preparations for Nigeria’s 2027 budget has reopened a critical debate over fiscal discipline, accountability and the implementation of previous national budgets, as billions of naira earmarked for infrastructure and development projects remain tied to unfinished spending programmes.
Although President Bola Ahmed Tinubu’s administration has expressed its determination to present the 2027 Appropriation Bill before the end of December 2026, concerns are mounting over the continued implementation of the 2025 capital budget alongside the N68.32 trillion 2026 budget.
The development has raised questions about the government’s capacity to complete existing projects, meet outstanding financial obligations and introduce another national spending plan without worsening the country’s already complicated fiscal arrangements.
Minister of State for Budget and National Planning, Dr Doris Uzoka-Anite, disclosed on Wednesday, October 28, 2026, that preparations for the 2027 budget had commenced, with the Federal Government targeting its presentation to the National Assembly before the end of the year.
Speaking with State House correspondents after the Federal Executive Council meeting presided over by President Tinubu in Abuja, the minister explained that early submission would give federal lawmakers sufficient time to scrutinise revenue projections, expenditure priorities and proposed allocations before the commencement of the 2027 financial year.
However, the announcement comes at a time when the Federal Government is still implementing capital projects captured in previous budgets, a practice that economic experts believe could undermine financial transparency and effective public expenditure management.
The 2025 capital budget, originally expected to expire on December 31, 2025, has undergone repeated extensions, with its implementation deadline now shifted to December 31, 2026.
President Tinubu signed the latest extension on September 30, following approval by the National Assembly, to enable ministries, departments and agencies to complete outstanding capital projects.
The extension means that Nigeria is effectively implementing spending provisions from two different fiscal years simultaneously, despite earlier commitments by the administration to restore a unified annual budget cycle.
The 2026 budget, valued at N68.32 trillion, took effect on April 1, 2026, while several projects funded under the 2025 appropriation remain outstanding.
This overlapping arrangement has become a major concern for fiscal policy analysts, who argue that the continued extension of old budgets makes it difficult to determine how much money has been released, spent or committed to specific projects.
Available implementation records indicate that capital spending under the 2025 budget was particularly weak during the first nine months of that year.
According to figures contained in the government’s budget implementation reports, approximately N3.1 trillion, representing about 17.7 per cent of the projected N17.58 trillion capital allocation, had been spent by September 2025.
The figures suggest that a substantial proportion of the government’s capital expenditure programme remained unimplemented during the period, contributing to the decision to extend the lifespan of the budget.
Economic analysts have warned that persistent delays in project execution could increase construction costs, weaken investor confidence and create uncertainty for contractors handling government-funded infrastructure.
Head of Research and Strategy at GTI Investment Group, Abiodun Ogunniyi, expressed concern over the continued operation of overlapping budgets, arguing that the practice weakens the effectiveness of national budgets as instruments for economic planning.
He explained that local and foreign investors depend on government budgets to understand development priorities, identify infrastructure opportunities and make long-term investment decisions.
According to him, uncertainty surrounding the implementation of successive budgets could discourage private investment and make it more difficult to assess the government’s actual fiscal performance.
The situation has also revived concerns about the growing number of abandoned and delayed public projects across Nigeria, including roads, hospitals, schools and other essential infrastructure.
For contractors, delayed budget implementation often translates into outstanding payments, rising borrowing costs and difficulties completing projects within agreed timelines.
For ordinary Nigerians, the consequences are reflected in deteriorating infrastructure, delayed access to essential public services and the continued absence of development projects already approved and funded on paper.
The National Assembly has previously expressed reservations about the persistent extension of capital budgets, with some lawmakers warning that the practice undermines accountability and creates confusion in the management of public finances.
Senator Danjuma Goje, representing Gombe Central, had criticised the operation of multiple budgets within a single financial year, calling for a return to a more predictable and transparent fiscal system.
Similarly, concerns have been raised in the House of Representatives over the need to strengthen budget monitoring and ensure that approved capital allocations translate into completed projects.
Beyond the implementation challenges, the preparation of the 2027 budget is taking place against the backdrop of uncertainty surrounding Nigeria’s oil revenue projections.
Figures released by the Nigerian Upstream Petroleum Regulatory Commission indicate that crude oil production rose to approximately 1.53 million barrels per day in September 2026, representing a modest improvement over the preceding month.
Although the production figure exceeded Nigeria’s Organisation of Petroleum Exporting Countries quota of 1.50 million barrels per day, overall production performance remains below the assumptions underpinning the 2026 budget.
Average daily production, including condensates, stood at approximately 1.65 million barrels during the first nine months of 2026, compared with the government’s budget benchmark of 1.84 million barrels per day.
The production shortfall could affect projected oil revenue and place additional pressure on the government’s ability to finance infrastructure, social services and other development commitments.
The challenge is particularly significant because oil revenue remains an important component of Nigeria’s public finances, despite ongoing efforts to diversify the economy and strengthen non-oil revenue collection.
Meanwhile, the Federal Executive Council has approved the National Development Plan for 2026–2030, alongside a revised National Policy on Food and Nutrition designed to strengthen food security and address child malnutrition.
The government believes the development framework will provide strategic direction for investment in agriculture, infrastructure, education, healthcare and other sectors considered essential to sustainable economic growth.
Nevertheless, the effectiveness of these policies will depend largely on the government’s ability to translate budgetary provisions into measurable development outcomes.
Fiscal policy experts have continued to emphasise that approving larger budgets does not automatically guarantee economic progress, particularly where implementation is delayed and monitoring mechanisms remain weak.
They argue that greater attention should be given to completing ongoing projects, improving revenue mobilisation, ensuring timely release of funds and publishing comprehensive reports on budget performance.
The preparation of the 2027 budget also presents an opportunity for the Tinubu administration to demonstrate its commitment to fiscal reforms by establishing clearer spending priorities and addressing the structural weaknesses responsible for repeated budget extensions.
As of October 29, 2026, the government has yet to release the proposed size of the 2027 budget, its projected revenue, expected deficit or detailed allocations to critical sectors.
These figures are expected to emerge as the budget preparation process advances and the executive finalises its expenditure proposals for legislative consideration.
For Nigerians facing rising living costs and persistent infrastructure challenges, the central concern is whether the next budget will deliver practical improvements in transportation, electricity, healthcare, education, employment and household welfare.
The National Assembly will also face increasing pressure to strengthen oversight of public expenditure and demand credible explanations for delayed projects before approving additional financial commitments.
With the 2027 general elections approaching, the administration’s fiscal performance is likely to attract greater public attention, particularly regarding the delivery of infrastructure projects and the management of public resources.
Ultimately, the success of Nigeria’s 2027 budget will depend not merely on its timely presentation or the amount appropriated, but on whether the Federal Government can end recurring budget overlaps, complete outstanding projects and ensure that public spending produces visible benefits for citizens.
For President Tinubu’s administration, the challenge is no longer simply preparing another ambitious national budget, but demonstrating that approved funds can be efficiently converted into roads, hospitals, schools, jobs and sustainable economic opportunities for Nigerians.
