The Federal Government has concluded plans to phase out multiple budgetary fiscal operations, according to the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.

Multiple budgetary fiscal operations entail the implementation of more than one Appropriation Act simultaneously.

In the current regime, about three Appropriation Acts are running concurrently, a practice that has attracted significant public debate.

While the Director-General of the Budget Office of the Federation, Dr. Tanimu Yakubu, has apparently endorsed this situation, Minister Edun yesterday, at the Nigerian Economic Summit in Abuja, said there wouldn’t be more budget extensions going forward.

Yakubu, defending the practice in the face of huge public criticism, explained that it is not a “fiscal anomaly” but a “transitional budget system” and an “institutional flexibility” that is legally backed by current fiscal laws to ensure the completion of capital projects.

However, speaking at the evening plenary on “The Reform Imperative: Building a Prosperous and Inclusive Nigeria By 2030” at the Summit, Edun stated: “No more extensions of Budget into the next year which has created so much confusion in the system. We have talked to NASS (National Assembly) and we have agreed to restore normalcy in that space.”

The minister also gave insight into the Federal Government’s borrowing strategy going forward. According to him, the government would make greater use of Sukuk, Green Bonds, and Diaspora Bonds instead of Eurobonds.

Edun also disclosed that there is now greater transparency in the Federation Account, adding that it took until August this year for the FG to have visibility of its accounts with the CBN.

According to him, the Federal Government has implemented a federal billing system that enables it to track exact payments for goods and services.

He emphasized the government’s commitment to financial visibility, saying: “We are determined to bring all Federal Government funds into visibility. There is a lot of FG’s money lying outside of CBN.”

Edun also said the fight against inflation started with the fiscal authorities, adding that the Federal Government would prioritize its spending, focusing on productivity-enhancing sectors.

He explained that the two major reforms—exchange rate unification and fuel subsidy removal—have freed five per cent of GDP into the Federation Account distribution to the three tiers of government.

As a result, the minister said Federation funds allocation to states have increased by about 111 per cent, and that states are now “awash with cash.”