Presidency clarifies that fiscal years are legally determined, not tied to the calendar.

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File: President Tinubu

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By Johnbosco Agbakwuru

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The Presidency, through the Budget Office of the Federation Sunday, said it has acknowledged public concerns about the timing of publication for the recent Quarterly Budget Implementation Reports and therefore offers clarification within the constitutional and statutory framework that governs public finance in Nigeria.

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A statement by Tanimu Yakubu, Director-General Budget Office of the Federation on the publication timeline of quarterly budget implementation report, explained that the fiscal year is not automatically coextensive with the calendar year.

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It said that the calendar year is a fixed twelve-month period from January to December. The fiscal year, by contrast, is a legal and legislative construct whose start, duration, and end are determined by the prevailing appropriation laws and related instruments.

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“Where an Appropriation Act or other lawful instrument authorizes expenditure or extends implementation beyond twelve months, the operative fiscal period takes on that legally prescribed duration.

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“In practice, the Federal Government has at times departed from a strict January–December cycle through statutory extensions, supplementary appropriations, continuing resolutions, rollover authorizations, and Appropriation (Repeal and Re-enactment) Acts.”

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It added: “The recent change in our publication timetable stems principally from the Repeal and Re-enactment of the 2025 Appropriation Act, concluded in December 2025, and the consequent extension of the 2025 Budget implementation period to June 2026.

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“Those measures legally extended the operational lifecycle of the 2025 Budget beyond a single calendar year.

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“Thus, in substance and in law, the fiscal year is a legislatively sustained expenditure window rather than an immutable chronological interval.

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“This distinction reflects accepted comparative practice: for example, the U.S. federal fiscal year runs from October 1 to September 30, and India’s fiscal year runs from April 1 to March 31—each defined by statute and policy considerations, not the Gregorian calendar.

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“Our Constitution likewise places primary emphasis on legislative authorization for public spending. Sections 80 and 81 of the Constitution require that withdrawals from the Consolidated Revenue Fund be authorized by an Appropriation Act or other law duly enacted by the National Assembly.

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“When the National Assembly lawfully extends or re-enacts expenditure authority, that authority remains valid and enforceable until it expires under law. Judicial authorities in Commonwealth jurisprudence have consistently affirmed the supremacy of legislative authorization in public expenditure matters.

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“History and recent experience underscore the practical rationale for such flexibility. During economic disruptions, including the post‑COVID-19 period, many jurisdictions extended budget implementation windows to manage procurement delays, revenue volatility, and the continuity of capital projects.

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“Nigeria has likewise extended implementation periods to avoid project abandonment, protect contractor liquidity, preserve jobs, and safeguard macro‑fiscal stability. These actions do not create constitutional problems; they reflect the fact that fiscal authority derives from law.

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“Following the Repeal and Re‑enactment of the 2025 Appropriation Act and the extension to June 2026, the Budget Office undertook comprehensive reconciliations—covering revenue performance, cash management, expenditure alignment, debt and financing, and inter‑agency coordination—to ensure the accuracy, integrity, completeness, and audit consistency of the Quarterly Budget Implementation Reports.

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“The outstanding Quarterly Budget Implementation Reports are being finalized and will be released in phases over the coming weeks.

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“At the same time, the Budget Office is strengthening its digital reporting architecture, data harmonization systems, and institutional coordination to deliver timelier, more comprehensive, and analytically robust fiscal reporting in line with international best practices.

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“The Federal Government remains committed to open budgeting, fiscal discipline, transparency, and accountable public financial management, in full compliance with the Constitution and statutory requirements.”

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