Pressure Mounts as Federal Government Balances Overlapping Budget Cycles

Time is becoming a critical factor for President Bola Tinubu’s administration as the Federal Government works to manage two budget periods at the same time, creating added strain on fiscal planning and execution.
The situation stems from delays in concluding the current budget cycle while preparations for the next fiscal year are already underway. As a result, ministries, departments, and agencies are required to implement existing spending plans even as they begin drafting proposals for a new budget.
Fiscal analysts note that this overlap complicates cash management, project implementation, and policy coordination. Capital projects risk delays as funds are stretched across commitments from different fiscal periods, while recurrent expenditure continues to place pressure on government finances.
The challenge is further heightened by revenue constraints, with the government relying heavily on improved tax collection, borrowing, and asset optimisation to fund expenditures. Efforts to expand the revenue base are ongoing, but shortfalls have limited the pace of budget execution.
Lawmakers have also expressed concern that prolonged overlaps could weaken legislative oversight and reduce the effectiveness of budget monitoring. They argue that timely budget passage and implementation are critical to achieving economic stability and sustaining growth.
Despite these hurdles, the administration maintains that reforms in public finance management and revenue mobilisation will gradually ease the strain. Officials insist that aligning future budgets more closely with the calendar year remains a priority.
As the budget timeline tightens, how effectively the government resolves the dual-cycle challenge may shape fiscal performance and investor confidence in the coming year