Nigeria's Budget Office Defines Fiscal Year by Law

The Budget Office, through its Director Tanimu Yakubu, stated that the fiscal year is determined by legal frameworks rather than being synonymous with the calendar year, which runs from January to December. The fiscal year can have a duration that commences and terminates based on existing legislative appropriations, allowing for expenditures to be valid beyond the ordinary twelve-month cycle.

This is particularly relevant for the Federal Government of Nigeria (FGN), which operates its fiscal administration with varying timelines. The 2025 Appropriations Act is set to conclude in December 2025, with subsequent extensions allowing for the implementation period of the 2025 budget to extend until June 2026.

This adjustment signifies that the fiscal year is not merely a chronological concept but a legal framework that sustains expenditure windows, as evidenced by practices in other jurisdictions, such as the United States and India, where fiscal years differ from the calendar year.