International Monetary Fund (IMF) has cautioned the Federal Government against persistent delays in budget passage and the continued practice of overlapping budget implementation.
Gatekeepers News reports that IMF warned that such fiscal practices undermine budget credibility, weaken economic planning, and create uncertainty for investors. The warning was highlighted in a recent IMF assessment of fiscal management across sub-Saharan Africa and reported by BusinessDay.
According to the IMF, budgets are meant to serve as a government’s core policy document, outlining spending priorities and fiscal commitments. However, when approved budgets are not implemented as planned or are repeatedly revised, public confidence in fiscal management declines while macroeconomic uncertainty increases.
The Fund expressed concern over Nigeria’s recurring practice of extending previous budgets into new fiscal years. The 2025 capital budget, for instance, was extended into 2026, resulting in the simultaneous implementation of multiple budgets.
The IMF also noted that Nigeria’s 2026 budget was signed several months into the fiscal year, a development that raises questions about budget discipline and timely execution. The report identified optimistic revenue projections, weak expenditure controls, and frequent revisions to approved spending plans as some of the structural weaknesses affecting fiscal management in the country.
BusinessDay reported that lawmakers have similarly raised concerns about budget overlaps and poor revenue performance. During discussions on the Medium-Term Expenditure Framework, officials acknowledged that revenue collections had fallen significantly below projections, forcing many capital projects to be rolled over into subsequent budgets.
The IMF urged governments across the region, including Nigeria, to improve budget credibility through realistic revenue assumptions, stronger expenditure controls, transparent fiscal reporting, and adherence to established budget timelines.
The organisation stressed that credible budgets are essential for maintaining fiscal discipline, attracting investment, and delivering long-term economic development.
