The Director-General of the Budget Office of the Federation, Tanimu Yakubu, has clarified that Nigeria's fiscal year is defined by legislative authority rather than the January-to-December calendar cycle. He made this statement in response to the delayed release of recent Quarterly Budget Implementation Reports.
Legal Basis for Fiscal Year
In a statement issued in Abuja, Yakubu explained that while the calendar year is a fixed 12-month period, the fiscal year is a legal and legislative construct. Its duration and implementation period are determined by appropriation laws enacted by the National Assembly. Whenever an Appropriation Act or related legislation extends expenditure validity beyond a conventional 12-month cycle, the fiscal year automatically assumes that extended legal character.
Yakubu noted that Nigeria's fiscal administration has historically operated outside the strict January-December framework through statutory extensions, supplementary appropriations, continuing resolutions, and Appropriation Repeal and Re-enactment Acts.
Reason for Reporting Delays
The delay in publishing the quarterly reports was largely caused by the repeal and re-enactment of the 2025 Appropriation Act in December 2025, followed by an extension of the budget's implementation period to June 2026. “These fiscal adjustments effectively extended the operational lifespan of the 2025 Budget beyond the conventional twelve-calendar-month framework ordinarily associated with a fiscal year,” Yakubu stated.
He argued that, both in law and practice, the fiscal year should be viewed as a legislatively sustained expenditure window rather than a purely chronological concept. Drawing comparisons with global practice, Yakubu noted that the United States operates a fiscal year from October 1 to September 30, while India’s fiscal year spans April 1 to March 31, demonstrating that fiscal calendars are shaped by policy and legislative realities.
Constitutional and Judicial Support
Yakubu further maintained that Sections 80 and 81 of the 1999 Constitution do not impose a rigid 12-month fiscal implementation cycle, but instead require that public withdrawals from the Consolidated Revenue Fund be backed by valid legislative authorization. He also cited judicial precedents, including Attorney-General of Bendel State v. Attorney-General of the Federation, to reinforce the principle that legislative approval remains supreme in matters of public expenditure.
COVID-19 and Budget Extensions
Yakubu noted that several countries, including Nigeria, extended budget implementation periods during and after the COVID-19 pandemic to address procurement delays, revenue shocks, and continuity of capital projects. Such extensions were lawful measures aimed at sustaining contractor liquidity, preserving jobs, and maintaining macro-fiscal stability.
Reconciliation and Future Plans
Following the re-enactment of the 2025 budget and extension of its implementation period, the Budget Office undertook extensive reconciliations involving revenue reviews, cash management adjustments, debt updates, and inter-agency fiscal coordination to ensure accuracy and consistency in the implementation reports. Yakubu assured that the outstanding Quarterly Budget Implementation Reports would be released in phases over the coming weeks.
He added that the Budget Office is also strengthening its digital reporting systems, data harmonisation processes, and institutional coordination mechanisms to improve the timeliness and analytical depth of fiscal reporting. “The Federal Government remains firmly committed to the principles of open budgeting, fiscal discipline, transparency, constitutional compliance, and accountable public financial management in line with global best practices,” the statement concluded.
