The Federal Government has clarified that Nigeria’s fiscal year is determined by legislative authority rather than the calendar year, explaining that the delayed release of quarterly budget implementation reports followed the extension and reenactment of the 2025 Appropriation Act.
Abuja – The Federal Government has clarified that fiscal years are determined by legal and legislative frameworks rather than the conventional January-to-December calendar cycle, explaining that this distinction accounts for the delayed publication of recent Quarterly Budget Implementation Reports.
The clarification was contained in a statement issued by the Director-General of the Budget Office of the Federation, Tanimu Yakubu, who addressed public concerns surrounding the reporting timeline.
According to Yakubu, while the calendar year remains a fixed twelve-month chronological system, a fiscal year is a legal construct whose commencement, duration and conclusion are determined by appropriation laws and related legislative instruments.
He explained that where expenditure approvals or budget implementation timelines are lawfully extended beyond the standard calendar period, the fiscal year automatically assumes that legally approved duration.
The Budget Office said Nigeria’s fiscal administration has, at various times, operated outside a strict January–December framework through mechanisms such as statutory extensions, supplementary budgets, continuing resolutions, rollover approvals and Appropriation Repeal and Re-enactment Acts.
Yakubu attributed the recent adjustment in the publication schedule for budget implementation reports primarily to the repeal and re-enactment of the 2025 Appropriation Act concluded in December 2025 and the subsequent extension of the 2025 budget implementation period to June 2026.
According to him, these developments effectively extended the operational lifespan of the 2025 budget beyond the traditional twelve-month cycle.
“In substance and in law, therefore, the fiscal year becomes not merely a chronological concept, but a legislatively sustained expenditure window,” the statement noted.
The Budget Office cited international examples to support its position, noting that fiscal years in several countries are set by law rather than by calendar convention.
It referenced the United States, where the federal fiscal year runs from October 1 to September 30, and India, where the fiscal cycle historically spans April 1 to March 31.
The statement maintained that such arrangements are designed to support macroeconomic management, budget execution and public finance administration.
Yakubu further argued that Nigeria’s constitutional framework supports this interpretation. He noted that Sections 80 and 81 of the 1999 Constitution, as amended, do not prescribe a rigid twelve-month fiscal implementation cycle but instead require that withdrawals from the Consolidated Revenue Fund be backed by an Appropriation Act or legislation passed by the National Assembly.
Consequently, he said expenditure authority lawfully extended or preserved by the legislature remains valid until its expiration under the law.
The statement also referenced judicial precedents supporting legislative supremacy over public expenditure.
Yakubu cited the Nigerian Supreme Court decision in Attorney-General of Bendel State v. Attorney-General of the Federation, which emphasized legislative control over public revenues and expenditures.
He also referred to Attorney-General v. De Keyser’s Royal Hotel Ltd, where courts affirmed that executive spending powers remain subordinate to statutory authorization when legislation governs expenditure.
The Budget Office pointed to global experiences during periods of economic disruption, including the aftermath of the COVID-19 pandemic, when several countries extended budget implementation timelines to manage procurement delays, revenue shortfalls and project continuity.
It added that Nigeria had similarly extended capital budget implementation periods in the past to prevent project abandonment, sustain contractor operations and maintain macro-fiscal stability.
Following the repeal and re-enactment of the 2025 Appropriation Act and the implementation extension, Yakubu said the Budget Office commenced detailed reconciliations involving revenue performance reviews, cash management adjustments, expenditure alignment, debt updates and inter-agency coordination.
These processes, he explained, were aimed at ensuring the accuracy, completeness and audit consistency of the Quarterly Budget Implementation Reports.
The Budget Office disclosed that the outstanding reports are currently being finalised and would be released in phases over the coming weeks.
It also announced ongoing efforts to strengthen digital reporting systems, data harmonisation and institutional coordination to improve fiscal reporting in line with international standards.
Yakubu reaffirmed the Federal Government’s commitment to transparency, fiscal discipline, constitutional compliance and accountable public financial management.
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