The senate, on Thursday, queried the federal government’s economic team over what it described as persistent poor budget implementation, particularly the low release of capital votes to ministries, departments and agencies (MDAs).
The issue came up during an interactive meeting between the senate committee on appropriations and members of the economic team, focusing on the execution of the N58.472 trillion 2026 budget and the completion of the capital components of the 2024 and 2025 budgets by March 31, 2026.
Solomon Adeola, chairman of the committee, led the session.
Addressing questions on funding for the capital portions of the 2024 and 2025 budgets, Wale Edun, minister of finance and coordinating minister of the economy, stated that both budgets are still receiving funding. However, lawmakers were not satisfied with his response.
Zacch Adedeji, chairman of the Nigeria Revenue Service (NRS), told the committee that unrealistic revenue projections have made implementation difficult.
“Budget funding must come from realistic projections. Efficiency is not about the size of the budget but about how much can actually be implemented,” Adedeji said.
“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.”
In his response, the committee chairman pointed out that the projections under scrutiny were developed by the executive arm of government.
“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,” he said.
“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 N58.472 trillion 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.”
Doris Uzoka-Anite, minister of state for finance, assured lawmakers that the capital components of the 2024 and 2025 budgets would be fully implemented before March 31, 2026.
“Regarding the 2025 budget, funding processes are beginning. Payments for outstanding 2024 capital projects start today,” she said.
“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.”
The committee later held a closed-door meeting with the economic team, which lasted about two hours.
Atiku Bagudu, minister of budget and economic planning, and Shamseldeen Ogunjimi, accountant-general of the federation, were also present at the session.