Introduction
Nigerian economist Professor Ken Ife has called on the Federal Government to repeal the existing 2025 Appropriation Act and consolidate its provisions with the newly presented 2026 budget. This advice comes in the wake of President Bola Tinubu's presentation of the N58.18 trillion 2026 Appropriation Bill to the National Assembly on Friday, December 19, 2025. Prof. Ife's recommendation highlights ongoing concerns regarding fiscal discipline and the management of Nigeria's national budget.
The Economist's Stance
Professor Ken Ife, a prominent International Development Consultant and Development Economist, articulated his position in an interview with the News Agency of Nigeria (NAN) on Saturday, December 20, 2025. As the Lead Consultant on Private Sector Development to the ECOWAS Commission and President of the Institute of Professional Economists and Policy Managers, Nigeria, Prof. Ife emphasized that the country risks being 'taken 10 years back by budget indiscipline and complete disregard of the Planning Law (FRA 2007)'. He previously warned against an 'unreasonable budget benchmark of 75 dollars per barrel and two million barrels per day', which he argued would inflate the budget, breach the deficit-to-GDP ratio, increase borrowing, and stifle capital expenditure and private sector investment. His current advice to repeal the 2025 Act and consolidate with the 2026 budget is rooted in the fact that '70 per cent of the capital component is outstanding' from the 2025 budget.
Challenges with the 2025 Appropriation Act
The 2025 Appropriation Act, signed into law by President Bola Tinubu, originally amounted to N54.99 trillion. However, its implementation has faced significant hurdles. Reports indicate that only N10 trillion of the projected N40 trillion in revenue for 2025 has been realized. This shortfall, coupled with persistent overlaps in Nigeria's budget execution cycle, has led to a situation where the country has been running multiple budgets simultaneously, including an extended 2024 budget. To address this, President Tinubu recently requested the National Assembly to approve an adjustment of the 2025 budget to N48.32 trillion and extend its implementation until March 31, 2026. Furthermore, the Federal Government had already directed that 70% of the 2025 capital allocations be rolled over into the 2026 fiscal year, indicating a substantial under-execution of capital projects within the 2025 period.
The 2026 Budget: A Path to Consolidation?
The newly presented 2026 Appropriation Bill, themed 'Budget of Consolidation, Renewed Resilience and Shared Prosperity', outlines a total expenditure of N58.18 trillion. Key projections include an expected total revenue of N34.33 trillion, recurrent non-debt expenditure of N15.25 trillion, and capital expenditure of N26.08 trillion. The budget projects a deficit of N23.85 trillion, representing 4.28 percent of GDP. Significant allocations have been made to critical sectors, with N5.41 trillion earmarked for defense and security, N6.0 trillion for education and healthcare, and N3.56 trillion for infrastructure. The fiscal framework is based on a conservative crude oil benchmark of US$64.85 per barrel, a production estimate of 1.84 million barrels per day, and an exchange rate of N1,400 to the US Dollar. President Tinubu stated that the 2026 budget is designed to consolidate recent economic reforms and translate stabilizing macroeconomic indicators into improved living standards for Nigerians, aiming to end the long-standing practice of running multiple budgets.
Conclusion
Prof. Ife's advice underscores the urgency of addressing Nigeria's complex budgeting system. While President Tinubu's administration has signaled its intent to streamline fiscal processes by extending the 2025 budget and presenting a consolidated 2026 plan, the economist's call for a full repeal of the 2025 Act suggests a more decisive break from past inconsistencies. The focus remains on achieving fiscal sustainability, transparent debt management, and growth that benefits all Nigerians, with the 2026 budget positioned as a crucial step towards national renewal.
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