SENATE DRAWS LINE ON BUDGET RECKLESS, SETS HARD TARGETS FOR 2026 SPENDING PLAN

The Nigerian Senate has sounded a clear warning to government agencies: no more inflated projections or overlapping budgets. Ahead of the 2026 Appropriation Act, lawmakers are demanding realistic figures backed by verifiable data.

In a detailed review of the 2026–2028 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), the Senate Committee on Finance, chaired by Senator Sani Musa (Niger East), confronted top economic officials over the structural weaknesses revealed in the 2025 budget.

Finance Minister Wale Edun disclosed that only ₦10 trillion of the projected ₦40 trillion revenue for 2025 was realised, leaving a ₦30 trillion gap.

About 70 percent of capital projects have been rolled over into 2026, exposing the country’s reliance on overlapping budgets.“Multiple budgets in a single year are unacceptable,” said Senator Danjuma Goje (Gombe Central).

“Budget implementation must be normalised starting 2026.”Senator Olalere Oyewumi (Osun West) stressed that future budgets must be grounded in reality, not hope.

Senators Victor Umeh (Anambra Central) and Ireti Kingibe (FCT) also questioned why approved borrowings were not used to fill revenue shortfalls.

In response, Senator Musa announced a three-man ad hoc committee to coordinate with the Finance Ministry and the Accountant-General, ensuring payments to local contractors for 2024 projects are completed before year-end.

Revenue mobilisation also took centre stage.

The Federal Inland Revenue Service (FIRS) initially proposed a ₦31 trillion target for 2026, which the committee rejected, instructing FIRS Chairman Zacch Adedeji to aim for ₦35 trillion. Adedeji noted that previous gains were being undermined by concurrent budgets.

Budget architects, including Minister of Budget and Economic Planning Senator Atiku Bagudu and Minister of State for Petroleum Resources Senator Heineken Lokpobiri, defended the proposed ₦54.4 trillion 2026 budget assumptions: oil production of 1.84 million barrels per day, oil price benchmark of $64.85 per barrel, and an exchange rate of ₦1,512 to the dollar.

Senators, however, made it clear that these figures must reflect market realities, inflation trends, and global oil dynamics.

The Senate described the process as a “forensic stress test” of all budget assumptions. Lawmakers also explored ways to expand non-oil revenue, including a proposed sugar-related bill, and sought domestic funding solutions for child immunisation after US support ended.

Senator Musa stressed that the 2026 budget must be credible, enforceable, and performance-driven, a marked shift from past reliance on overly optimistic projections and fiscal slippages.