Senate Questions Fiscal Projections, Weighs Possible Cut to N58.47trn 2026 Budget

Nigeria’s Senate has queried key members of the federal government’s economic team over what lawmakers described as unrealistic budget assumptions and persistent failures in capital project implementation, warning that the proposed N58.472 trillion 2026 budget may be reduced.

The scrutiny came Thursday during an interactive session between the Senate Committee on Appropriations and top finance officials. The panel, chaired by Solomon Olamilekan Adeola, focused on the feasibility of implementing the 2026 proposal and completing capital components of the 2024 and 2025 budgets by March 31, 2026.

The first official questioned was Wale Edun, Minister of Finance and Coordinating Minister of the Economy, whose explanation that capital components of the 2024 and 2025 budgets were still being funded failed to satisfy lawmakers.

In his defence, Zacch Adedeji, Chairman of the Nigeria Revenue Service, argued that unrealistic projections inevitably lead to poor implementation.

“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 assume you have one hundred units and spend accordingly, you may run into serious problems if the funds do not materialize,” he said.

However, Adeola countered that the budget framework originated from the executive arm, stressing that discrepancies between projected and actual oil revenues remained troubling.

He cited a wide performance gap, noting that an 18 percent revenue performance in one year contrasted sharply with a projection of 36.5 percent for the next year despite weak actual outcomes. He added that lawmakers must now decide whether to scale down the N58.472 trillion proposal or proceed with adjustments, warning that debt financing levels were already high.

According to him, asset disposal could help lower the national debt stock and reduce future borrowing costs.

Responding, Doris Nkiruka Uzoka-Anite, Minister of State for Finance, assured the committee that the remaining 30 percent capital components of both the 2024 and 2025 budgets would be fully implemented before March 31, 2026.

She disclosed that payment processes for outstanding 2024 capital projects had begun and that ministries, departments and agencies had been directed to upload their cash plans to enable releases.

“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 said.

After the public session, the committee held a closed-door meeting with the economic team lasting nearly two hours. Among those present were Atiku Bagudu, Minister of Budget and Economic Planning, and Shamsedeen Babatunde Ogunjimi, Accountant-General of the Federation.