The Senate and House of Representatives on Tuesday approved a further extension of the implementation period for the capital component of the 2025 budget, moving the deadline from September 30 to December 31, 2026.

The latest extension, the fourth since the budget’s original implementation deadline, gives ministries, departments, and agencies (MDAs) an additional three months to complete outstanding capital projects and utilise funds appropriated under the 2025 fiscal framework.

In the Senate, the amendment followed the consideration of a bill sponsored by the Senate Leader, Sen. Opeyemi Bamidele, after an executive session and clause-by-clause consideration at the Committee of Supply.

Bamidele said the extension would provide the administrative window required to fully implement capital projects for which funds had already been released and ensure the completion of critical national projects already at advanced stages.

The Senate Leader said the extension was also aimed at sustaining economic activity, supporting local contractors, facilitating the efficient utilisation of released funds, boosting overall budget performance, and enhancing public service delivery.

He further clarified that the bill did not seek to introduce new projects, adding that the extension should not be interpreted as a relaxation of fiscal accountability, but as a measure in accordance with the Fiscal Responsibility Act.

Defending the move during the debate, the Deputy Senate President said the extension was necessary to ensure that the current administration did not leave projects uncompleted, including those inherited from the Peoples Democratic Party (PDP).

The House of Representatives separately approved the same December 31 deadline during Tuesday’s plenary.

The House Majority Leader, Prof. Julius Ihonvbere, moved the measure, saying economic challenges had made it difficult to complete the implementation of the capital component before the September 30 deadline.

The House subsequently accelerated consideration of the amendment bill, passing it through its readings during the sitting.

The implementation period for the 2025 capital budget was originally due to expire on December 31, 2025. The National Assembly first extended it to March 31, 2026, before moving the deadline to June 30 and subsequently to September 30.

Tuesday’s action by both chambers extends the deadline for a fourth time, to December 31, 2026.

The repeated extensions come despite President Bola Tinubu’s earlier pledge to streamline Nigeria’s budgeting system and eliminate concurrent and overlapping fiscal cycles.

With the latest approvals by both chambers, federal MDAs will have until December 31, 2026, to implement outstanding capital allocations and complete ongoing projects under the 2025 budget framework.