The Senate has warned that it will no longer tolerate agencies that benefit from service-wide votes without proper accountability.
The Chairman of the Senate Committee on Appropriations, Senator Adeola Olamilekan, issued the warning on Monday, saying the 2026 budget would represent a clear departure from previous spending practices.
Speaking at a one-day public hearing on the 2026 Appropriation Bill, Olamilekan said the Senate would subject every budget item to rigorous scrutiny to ensure transparent and responsible use of public funds.
He urged ministries, departments and agencies (MDAs) to work closely with oversight bodies to strengthen transparency, efficiency and fiscal discipline across government operations.
The senator also declared that the National Assembly would no longer extend the implementation of federal budgets beyond 31 December, stressing that delays weaken fiscal planning and accountability.
Olamilekan identified the electricity sector as a major burden on public finances and called for urgent and comprehensive reforms, including the unbundling of the power sector. He noted that electricity subsidies, which cost the country several trillions of naira each year, must be addressed to release funds for development.
He further expressed concern that government revenue remains insufficient to fund the proposed 2026 budget, which carries a deficit of ₦25.1 trillion, warning that persistent deficits raise serious concerns about fiscal sustainability.
Responding to remarks by economic consultant Adetilewa Adebayo on Nigeria’s untapped $3 trillion economic potential, Olamilekan said continued borrowing had become unavoidable due to heavy debt-servicing obligations inherited from previous administrations, including those from the military era.
He added that high debt-to-revenue ratios were not unique to Nigeria, noting that government revenue flows are irregular rather than received in bulk.
According to him, the country must continue to service its debts to avoid a downgrade by international institutions such as the World Bank and the International Monetary Fund (IMF), warning that default would damage Nigeria’s credibility.
To address the funding gap, Olamilekan disclosed that the government plans to access international financial markets, invite the Group Managing Director of the Nigerian National Petroleum Company Limited (NNPCL) to clarify expected revenue contributions, and consider privatising some federal assets to finance the deficit.