Nigeria's Fiscal Year Defined by Law, Not Calendar

Dr. Tanimu Yakubu, the Director of the Budget Office of the Federation, defended the assertion that Nigeria's fiscal year is dictated by legal provisions rather than the conventional January to December calendar. He addressed criticisms regarding the timeline for the quarterly budget implementation report, clarifying that the fiscal year can legally extend beyond the standard 12-month calendar cycle.

Yakubu explained that the appropriations act allows for expenditures to be valid beyond a single calendar year, referencing the 2025 appropriations act which extends the implementation period to June 2026. He cited examples from other jurisdictions, such as the United States and India, where fiscal years differ from calendar years.

Yakubu also noted that the global COVID-19 pandemic had caused fiscal disruptions, prompting several countries to extend their budget implementation periods. He assured that the Budget Office is committed to transparency and fiscal discipline, with plans to release the outstanding quarterly budget implementation report soon.