Nigeria's new budget reform aims to end costly delays by 2026

Years of delayed funds left Nigeria's economy struggling—now a bold budget overhaul promises to unlock stalled projects. Will 2026 finally bring change?

, and Administrator

2026 February 1 . 4:14 PM

1 min read

The image shows a map of Nigeria with the provinces highlighted in different colors. The text at... — The image shows a map of Nigeria with the provinces highlighted in different colors. The text at the bottom of the image reads "Nigeria Election Results".

Nigeria's new budget reform aims to end costly delays by 2026

Nigeria's economic growth has faced setbacks due to persistent delays in capital spending, rather than budget deficits alone. Overlapping budget cycles have worsened the problem, causing frustration among contractors and stalling key projects. Now, President Bola Tinubu has announced plans to shift to a single annual budget cycle by April 2026.

For years, Nigeria has struggled with overlapping budgets, leading to late releases of capital funds. These delays disrupted project timelines, forcing rollovers from the 2024 budget into 2025. Contractors, facing unpaid work, staged protests as funding shortfalls persisted.

The impact of these delays became clearer in 2025. Planned government investments failed to materialise on time, weakening investment momentum. Officials described the situation as a 'time reset' on Nigeria's goal of building a $1 trillion economy.

By mid-2025, public debt had climbed to around N152 trillion, making further borrowing inevitable for 2026. Despite the financial strain, experts argue that poor execution of capital projects—not deficits—has done more harm to economic progress.

In response, President Tinubu has ordered a switch to a single annual budget cycle starting in April 2026. The move aims to streamline spending, reduce delays, and improve the efficiency of public investments.

No state has benefited from the capital expenditure delays since 2023, according to available records. The ongoing disruptions have instead left infrastructure projects stalled across the country.

The shift to a single budget cycle in 2026 is expected to reduce delays and improve capital spending. With public debt rising and economic targets at risk, the reform aims to restore momentum in Nigeria's infrastructure development. The success of this change will depend on consistent implementation and timely fund releases.