December 18, (THEWILL) — Following THEWILL’s report that Nigeria risks fiscal chaos through the planned implementation of multiple budgets, the Federal Government has taken a decisive step to avert the impending crisis.
In a move to end the practice of running multiple budgets concurrently and its attendant fiscal chaos, President Bola Tinubu has formally asked the House of Representatives to approve the issuance of ₦43.56 trillion from the Consolidated Revenue Fund of the Federation through the Appropriation (Repeal and Re-enactment) Bill, 2024–2025.
The request was contained in a letter transmitted to the Speaker of the House of Representatives, Hon. Tajudeen Abbas, and read at plenary by the Deputy Speaker, Benjamin Kalu, who presided over plenary.
According to the letter, the Bill seeks authorisation to issue a total sum of ₦43,561,041,744,507 to fund Statutory Transfers, Debt Service, Recurrent (Non-Debt) Expenditure, and Capital Expenditure/Development Fund contributions.
President Tinubu stated that the proposed legislation is designed to introduce a more transparent and orderly budget framework, while addressing urgent national needs. “The purpose of the Bill is to stop the practice of running multiple budgets concurrently and to provide a transparent mechanism for the orderly consolidation of budgets”, the President stated.
He explained that the re-enactment would also accommodate critical and time-sensitive expenditures already incurred in response to emergency situations affecting national security and public welfare.
“The Bill provides for the appropriation of critical, time-sensitive expenditures necessarily undertaken in response to emergency exigencies, advancing the collective well-being of Nigerians and safeguarding national security”, Tinubu said, adding that it would simultaneously “reinforce fiscal discipline, accountability, and prudent public financial management.”
The President further noted that the proposed law introduces stricter controls on budget implementation and the use of public funds. Under the Bill, funds released must be applied strictly for the purposes approved by the National Assembly.
Among other safeguards, Tinubu stated that the Bill stipulates that virement can only be effected with prior approval of the National Assembly, while corrigenda would be permitted only under clearly defined conditions where genuine errors could hinder implementation.
It also mandates the separate recording of excess revenue, limiting its expenditure strictly to cases approved by an Act of the National Assembly, and requires due-process compliance as well as periodic reporting on fund releases and agency-generated revenues or assistance.
“The Bill strengthens implementation discipline and accountability”, the President emphasised.
Appealing for swift legislative action, Tinubu urged lawmakers to give the proposal expedited consideration. The House passed the bill for first and second reading, and the Deputy Speaker referred it to the committee on appropriation.
THEWILL reports that the Federal Government’s decision, through the Federal Ministry of Budget and Economic Planning, to defer the implementation of 70 percent of capital projects initially appropriated in the 2025 fiscal year to 2026, is seen as potential fiscal chaos amid pending, overlapping items that run through 2023-2025.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
