Nigeria to Implement Single Budget System in March 2026, Says Rep Agbese

Introduction

The Nigerian fiscal landscape is on the brink of a significant transformation aimed at enhancing economic stability and budget transparency. In a recent disclosure, Deputy Spokesperson of the House of Representatives, Hon. Philip Agbese, confirmed that the Federal Government will operate a single budget system starting March 2026. This strategic shift follows the repeal and re-enactment of the 2024 and 2025 appropriation acts by the National Assembly. The move is designed to streamline public expenditure, eliminate fiscal fragmentation, and align Nigeria’s budgeting process with international best practices. This comprehensive guide explores the details of this reform, its background, and what it means for the Nigerian economy.

Key Points

Background

To understand the significance of the single budget system, it is necessary to examine the recent history of Nigeria’s fiscal management. The 2024 and 2025 fiscal years were characterized by significant operational hurdles. The Federal Government frequently struggled with the execution of the budget, leading to the controversial practice of operating multiple appropriations within the same fiscal year. This fragmentation often resulted in disjointed spending, delayed project execution, and difficulties in tracking government expenditure.

The Problem of Multiple Appropriations

Historically, when a budget is not passed before the start of the fiscal year, or when supplementary budgets are introduced frequently, the financial management system becomes chaotic. In the case of the 2024 and 2025 budgets, the government faced delays and operational bottlenecks that necessitated overlapping spending cycles. This lack of a unified fiscal framework made it difficult to enforce budget discipline and hindered the ability of the government to plan effectively.

Legislative Intervention

In response to these challenges, President Bola Tinubu requested the National Assembly to repeal and re-enact the relevant budget acts. On Tuesday, December 23, 2025 (approximate date based on context), the National Assembly acceded to this request. Crucially, the implementation timeline of the 2025 budget was extended through March 2026. This extension was not merely a delay but a strategic bridge to facilitate the transition to the new single budget structure, ensuring there are no gaps in public expenditure and maintaining fiscal continuity.

Analysis

The decision to adopt a single budget framework is a direct response to the need for fiscal sustainability and accountability. According to Deputy Spokesperson Philip Agbese, this reform is intended to align Nigeria with “international and cross-border best practices.” Most developed economies operate on a single, consolidated appropriation act that covers the full fiscal year, allowing for better oversight and financial planning.

Enhancing Transparency and Oversight

One of the most significant impacts of this policy is the reduction of the oversight burden. When multiple appropriations or supplementary budgets are scattered throughout the year, legislative oversight becomes fragmented. A single budget allows the National Assembly to focus its scrutiny on a unified document. This consolidation is expected to significantly reduce the loopholes that currently allow for opaque spending, thereby strengthening the anti-corruption framework within the government.

Operational Efficiency

From an administrative perspective, Agbese noted that a single budget system makes it easier to execute the budget “without much hassle.” In a fragmented system, cash flow management becomes a nightmare for the Ministry of Finance and the Office of the Accountant-General. By knowing the exact total revenue and expenditure upfront, the government can manage cash flow more effectively, ensuring that funds are released to ministries and agencies in a timely manner. This predictability is vital for contractors, civil servants, and the general public who rely on government services.

Practical Advice

While the policy is a legislative and executive directive, its effects will ripple through the economy. Here is how different stakeholders can prepare for the transition to the March 2026 single budget system.

For Public Sector Contractors and Businesses

If your business relies on government contracts or funding, the shift to a single budget system is a positive development. However, it requires adjustment:

• Plan for Predictability: Unlike previous years where funds might be released sporadically, the new system aims for a structured release schedule. Align your project milestones with the fiscal calendar.
• Budget Alignment: Ensure your proposals align strictly with the provisions of the single appropriation act. Supplementary requests may face stricter scrutiny under the new regime.

For Civil Society and Media

Increased transparency means there will be more data to analyze:

• Monitor Implementation: Use the single budget document as a benchmark to track government performance.
• Focus on Timelines: With the budget now tied to a fixed timeline ending in March 2026, media and civil society organizations should track the release of funds against the specific provisions in the act.

FAQ

Conclusion

The transition to a single budget system in March 2026 represents a pivotal moment in Nigeria’s economic history. By moving away from the chaotic multiple appropriations of the past, the Federal Government, led by President Tinubu and supported by the National Assembly, is signaling a commitment to fiscal discipline and economic stability. As articulated by Rep. Philip Agbese, this reform is not just about accounting; it is about restoring public confidence, ensuring timely project completion, and laying the groundwork for sustainable development. If implemented effectively, this policy could significantly enhance the ease of doing business in the public sector and improve the quality of life for Nigerian citizens through better service delivery.