…may cut N58.472trn estimates
The Senate has faulted poor budget implementation by the Federal Government in recent years, noticeable in zero allocations or non-releases of funds to Ministries, Departments and Agencies (MDAs).
Its Committee on Appropriations, while raising the concerns on Thursday, cast doubts over the ability of the government to implement the 2026 budget size of N58.472trillion.
The Chairman of the committee, Senator Adeola Solomon Olamilekan, spoke in Abuja during an engagement with the Economic Management Team of the government at the National Assembly on the 2026 budget and conclusion of the capital component of 2024 and 2025 budgets by March 31, this year.
In attendance included the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, Minister of Budget and Economic Planning, Senator Atiku Bagudu, the Chairman of the Nigeria Revenue Service (NRS), Dr Zach Adedeji and the Accountant-General of the Federation, Mr Shamsedeen Babatunde Ogunjimi.
Edun, who addressed the committee first, had argued that the previous two budgets were still being fully funded running smoothly, earning the anger of lawmakers in the process.
Adedeji interjected, trying to give an added perspective, saying, “Budget funding must come from realistic projections.
“Efficiency is not about the size of the budget but about how much can actually be implemented.
“If you think you have ten units and spend accordingly, that is manageable. But if you assume you have one hundred and spend based on that assumption, you may run into serious problems if the funds do not materialise.”
His intervention did not satisfy the committee members as Olamilekan noted that the economic team and the entire budget chain were to blame for the lapses in funding and implementation of budgets.
Olamilekan, who represents Ogun-West Senatorial District, stated, “This document before us originated from the executive.
“The projections and challenges came from the executive arm, not the legislature. The gap between projected and realised oil revenue is wide.
“For example, how do we explain 18 percent performance in one year and projections of 36.5 percent the next year when actual performance is still below expectations?
“So the question is: Do we reduce the N58.472trillion 2026 budget, or do we proceed and make adjustments? Debt financing is already high.
“If certain assets were disposed of and used to reduce debt, two things would happen: the overall debt stock would reduce, and future borrowing costs could also decline.”
Also speaking, the Minister of State for Finance , Dr Doris Nkiruka Uzoka-Anite, assured the committee of full implementation of the 30 percent capital component of the 2025 and 2024 budgets, adding that the implementation would be done before the end of the first quarter of the year.
“Regarding the 2025 budget, funding processes are beginning. Payments for outstanding 2024 capital projects start today.
“The financial management system is back online. For 2025, MDAs have been asked to upload their cash plans by Monday, after which payments will commence.
“We are ready to start, but the MDAs must complete their documentation requirements,” she told the session.