Senate questions economic team on unrealistic budget assumptions

2026-02-19 - 17:26

...Considers N58.472trn Reduction By Henry Umoru ABUJA — The Senate has expressed concerns over poor budget implementation by the federal government, citing low or zero releases of capital votes to Ministries, Departments, and Agencies (MDAs). The Senate Committee on Appropriations, led by Senator Olamilekan Adeola (APC, Ogun West), raised the issue during an interactive session with the federal economic team on the realistic implementation of the proposed N58.472 trillion 2026 budget and the completion of the capital components of the 2024 and 2025 budgets by March 31, 2026. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, told the committee that funding for the capital components of the 2024 and 2025 budgets was still ongoing—a response that did not sit well with lawmakers. The Chairman of the Nigeria Revenue Service, Dr Zacch Adedeji, explained that unrealistic budget assumptions hinder effective implementation, stating: “Budget funding must come from realistic projections. Efficiency is not about the size of the budget but about how much can actually be implemented.” Senator Adeola highlighted the gap between projected and actual oil revenue, questioning how performance could jump from 18 percent in one year to projected 36.5 percent the next while actual results remain below expectations. He asked whether the N58.472 trillion 2026 budget should be reduced or adjusted, noting that debt financing is already high and suggesting that asset disposal could reduce overall debt stock and borrowing costs. The Minister of State for Finance, Dr Doris Nkiruka Uzoka-Anite, assured the committee that the 30 percent capital component of the 2024 and 2025 budgets would be fully implemented by March 31, 2026. She said payments for outstanding 2024 capital projects had commenced and that MDAs had been instructed to upload cash plans for 2025 to enable timely disbursements. The session later moved behind closed doors for about two hours, attended by the Minister of Budget and Economic Planning, Atiku Bagudu, and the Accountant General of the Federation, Shamsedeen Babatunde Ogunjimi. The committee is expected to deliberate further on whether to adjust or reduce the 2026 budget in light of these implementation challenges.