Economic analysts have raised concerns over the simultaneous implementation of three federal budgets, urging the government to align its spending plans with a realistic revenue framework.
Speaking on the issue, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, said the overlapping of the 2024, 2024 Supplementary, and 2025 budgets may reflect deeper structural issues.
Yusuf noted that poor revenue performance, overambitious spending targets, and rising debt service costs have forced the government to extend capital project implementation beyond normal timelines.
“First is the possible collapse of the underlying revenue assumptions. Revenue performance in 2024 fell below target, partly due to failed oil production targets and forward sales of crude oil,” he explained.
He also warned that Nigeria’s capital budget continues to underperform due to unrealistic targets and limited fiscal space.
“It’s perhaps time to reform the budget process to make our budgets more realistic. Capital projects should be aligned strictly with the realistic capacity to fund them,” he added.
Dr. Yusuf expressed hope that ongoing tax reforms will help boost government revenue and promote fiscal sustainability.
