Uncertainty surrounding the timeline for Nigeria's 2026 budget presentation and approval is triggering significant market tension, raising fears of a repeat of past cycles marked by rushed approvals, weak fiscal discipline, and chaotic execution of projects. As of mid-November 2025, with less than 45 days to the year-end, the federal executive has neither reworked nor transmitted the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2026-2028 to the National Assembly as required by law.
Reports indicate that delays in budget preparation and submission complicate planning and spending for federal ministries, departments, and agencies, many of which are already battling poor funding and operational despair. The absence of a finalized MTEF hampers coherent fiscal policy alignment, casting doubts on the government's ability to promote sustained economic growth and effective public service delivery.
Previously, the 2025 budget, dubbed the "Budget of Restoration," faced implementation delays, with capital spending only picking up months after approval. Stakeholders are anxious that without timely and disciplined budget processes for 2026, Nigeria risks entrenching cyclical fiscal unpredictability, endangering investor confidence and economic stability.
Efforts to meet constitutional deadlines, including issuing budget call circulars and aligning with the Fiscal Responsibility Act, have faced setbacks. Analysts warn that ongoing fiscal uncertainty can lead to wasted resources, truncated development projects, and fiscal management lapses, underscoring the critical need for transparent, timely budget processes going forward.
In parallel, several Nigerian states such as Osun and Plateau have presented their 2026 budgets with varying degrees of preparedness and fiscal discipline, highlighting contrasts with the federal government's delays.
The evolving situation calls for urgent executive commitment and legislative engagement to restore confidence in Nigeria's budgetary system and establish a stable platform for economic governance this fiscal cycle.