The Senate has raised serious concerns over what it described as persistent poor implementation of federal budgets, warning that recurring zero allocations and non-release of funds to Ministries, Departments and Agencies (MDAs) cast doubt on the Federal Government’s ability to execute the proposed N58.472 trillion 2026 budget.
The upper chamber’s Committee on Appropriations voiced the reservations on Thursday during an engagement with the Federal Government’s Economic Management Team at the National Assembly, Abuja.
The session also reviewed the capital components of the 2024 and 2025 budgets, which the executive plans to conclude by March 31.
Chairman of the Committee, Adeola Solomon Olamilekan, said the wide gap between revenue projections and actual performance in recent years undermined confidence in the government’s fiscal projections.
In attendance were the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; the Minister of Budget and Economic Planning, Atiku Bagudu; the Chairman of the Nigeria Revenue Service (NRS), Zach Adedeji; and the Accountant-General of the Federation, Shamsedeen Babatunde Ogunjimi.
Edun, who spoke first, maintained that the 2024 and 2025 budgets were being funded and implemented steadily. His position, however, drew sharp reactions from lawmakers, who argued that implementation performance on the ground did not reflect such assurances.
Adedeji sought to provide context, stressing that budget performance hinges on realistic revenue projections.
“Efficiency is not about the size of the budget but about how much can actually be implemented,” he said. “If you assume resources that do not materialise, implementation challenges are inevitable.”
But the explanation failed to assuage the committee. Olamilekan insisted that responsibility for the recurring shortfalls lies squarely with the executive arm.
“This document before us originated from the executive,” he said. “The projections and the challenges came from the executive, not the legislature. The gap between projected and realised oil revenue is wide.
“How do we explain 18 per cent performance in one year and projections of 36.5 per cent the next year when actual performance remains below expectations?” he queried.
He warned that with debt financing already elevated, the government must reconsider its approach.
“Do we reduce the N58.472 trillion 2026 budget, or proceed and adjust along the way? If certain assets were disposed of to reduce debt, the overall debt stock would decline, and future borrowing costs could ease.”
Also addressing the committee, the Minister of State for Finance, Doris Nkiruka Uzoka-Anite, assured lawmakers that 30 per cent of the capital components of the 2024 and 2025 budgets would be fully implemented before the end of the first quarter.
She disclosed that payments for outstanding 2024 capital projects would commence immediately, noting that the government’s financial management system had been restored.
“For 2025, MDAs have been directed to upload their cash plans by Monday, after which payments will begin. We are ready to start, but the MDAs must complete their documentation requirements,” she said.
The exchange underscored growing tension between the legislature and the executive over fiscal discipline, revenue realism and the sustainability of Nigeria’s expanding budget framework.
