Senate moves to halt multiple budget implementations

The Senate has expressed strong dissatisfaction with the federal government’s practice of implementing multiple budgets within a single fiscal year, warning that the trend undermines fiscal discipline, transparency, and effective governance. The lawmakers also directed the Federal Inland Revenue Service (FIRS) to raise its 2026 revenue target from N31 trillion to N35 trillion. These concerns were raised on Monday during an interactive session between the Senate Committee on Finance and key economic managers on the 2026–2028 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP). The session was chaired by the committee’s chairman, Senator Sani Musa (APC, Niger East). Minister of Finance and Coordinating Minister of the Economy, Wale Edun, told the committee that while the 2024 budget performed fairly well in terms of revenue, the 2025 budget recorded significant setbacks. He disclosed that of the projected N40 trillion revenue for 2025, only about N10 trillion had been realised, leaving a deficit of N30 trillion. Edun said the revenue shortfall forced the government to roll over nearly 70 per cent of capital projects in the 2025 budget into 2026, a development that drew sharp criticism from senators. Lawmakers including Senators Danjuma Goje (Gombe Central), Olalere Oyewumi (Osun West), Victor Umeh (Anambra Central), Aminu Abbas (Adamawa Central) and Ireti Kingibe (FCT) described the implementation of overlapping budgets as unacceptable and burdensome to Nigerians. They urged the executive to present realistic and achievable budget proposals and questioned why approved borrowings were not deployed to bridge revenue gaps. Nigeria’s long-standing practice of extending the capital components of expired budgets has increasingly attracted criticism. Under the President Bola Ahmed Tinubu administration, the scale of such extensions has intensified concerns. In 2024 alone, Nigeria effectively operated three budgets simultaneously—the N21.8 trillion 2023 Appropriation Act, the N2.17 trillion 2023 Supplementary Budget, and the N28.7 trillion 2024 budget. The trend persisted into 2025, resulting in the concurrent implementation of the extended 2024 budget and the 2025 Appropriation Act, estimated at about N54.2 trillion following an upward adjustment by the National Assembly. Critics argue that overlapping budgets weaken accountability and complicate monitoring of public spending. In response, Senator Sani Musa assured that steps would be taken to normalise budget planning from 2026. He announced the creation of a three-man ad hoc committee to liaise with the Ministry of Finance and the Office of the Accountant-General to ensure payment of local contractors for 2024 projects before the budget expires. The committee also mandated FIRS Chairman, Zacch Adedeji, to work towards achieving N35 trillion revenue in 2026. Adedeji disclosed that FIRS generated N20.2 trillion in 2024 and N25.2 trillion in 2025 but noted that multiple budget implementations eroded revenue gains. Meanwhile, the Ministers of Budget and Economic Planning, Atiku Bagudu, and State for Petroleum Resources, Heineken Lokpobiri, defended the proposed N54.4 trillion 2026 budget, anchored on oil production of 1.84 million barrels per day, a $64.85 oil benchmark, and an exchange rate of N1,512 to the dollar.

Nigerians can now invest ₦2.5 million on premium domains and profit about ₦17-₦25 million. All earnings paid in US Dollars. Rather than wonder, click here to find out how it works.

Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.