Lawmakers in the Senate on Monday raised concerns over the continued implementation of multiple budgets within a single fiscal year, describing the practice as unacceptable and unsustainable.
The Senate, through its Committee on Finance, expressed displeasure that despite heavy borrowing, no single budget cycle has been fully implemented.
The concerns were raised during an interactive session with managers of the nation’s economy on the 2026–2028 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), following submissions by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
The Minister disclosed that about 70 per cent of the 2025 capital budget would be rolled over into the 2026 fiscal year to ensure proper implementation, while MDAs have been directed not to introduce new capital projects.
The Senators took turns reminding the Minister that budgetary proposals are not imposed on government by the governed, urging the executive to present realistic and implementable proposals to avoid repeated rollovers and multiple budget implementations across fiscal years.
Senators Victor Umeh and Ireti Kingibe also queried why revenue gaps were not adequately filled despite borrowings approved by the Senate and the National Assembly.
Chairman Senate Committee on Finance, Senator Sani Musa, however, assured his colleagues and Nigerians that budget normalization would commence from 2026.
He announced that a three-man ad-hoc committee would be constituted to liaise with the Minister of Finance and the Accountant-General of the Federation to ensure payment of local contractors for projects executed under the 2024 budget before its expiration at the end of the month.
Consequently, the Committee tasked the Federal Inland Revenue Service (FIRS) to increase its projected revenue target for 2026 from N31 trillion to N35 trillion, even as the Federal Government lamented a N30 trillion shortfall from the N40 trillion revenue target for the 2025 fiscal year.
The finance Minister informed the Committee that while revenue targets for the 2024 budget were substantially met, those of 2025 were not.
He said funding for the 2024 capital budget was achieved through realised revenues of about N26 trillion, but only N10 trillion of the N40 trillion projected revenue for 2025 had been realised, creating a N30 trillion gap and necessitating the rollover of 70 per cent of capital projects into 2026.
Disturbed by the disclosure, Senators Danjuma Goje, Olalere Oyewumi, Victor Umeh, Aminu Iya Abbas and others expressed displeasure with the practice of running multiple budgets in one fiscal year.
Senator Goje described the situation as ugly and unacceptable, insisting that Nigeria must return to the normal January–December budget cycle.
Responding, the Minister explained that the decision to capture projects up to September was to avoid repeated extensions like the current 2024 capital budget rollover to December.
He said the automated budget gateway had captured projects up to September, with about 50 per cent funding available and the balance proposed for rollover into the 2026 budget.
For the 2025 capital budget, he noted that 30 per cent was fully funded, approvals had been issued, and no further extension should occur beyond what the National Assembly approves.
On revenue, the Minister noted that while non-oil revenue performed relatively well and at times exceeded targets, oil revenue remained a major risk.
He disclosed that oil revenue budgeted at N26 trillion in 2024 yielded only about N8.2 trillion, largely due to oil tax shortfalls.
He warned that uncertain revenue projections must be matched with flexible expenditure commitments to avoid fiscal stress.
He stressed that although the 2025 projected revenue was N40 trillion and only N10 trillion was realised, salaries, pensions, statutory transfers, and debt servicing were met through prudent treasury management and financial engineering.
On FIRS revenue projections, Senator Sani Musa directed the Chairman of FIRS, Zacch Adedeji, to work towards achieving N35 trillion in revenue for 2026 instead of the N31 trillion earlier proposed.
Adedeji disclosed that FIRS generated N20.2 trillion in 2024 and N25.2 trillion in 2025, but lamented that revenue gains were being eroded by the burden of multiple budget implementations.
Meanwhile, the Minister of Budget and Economic Planning, Atiku Bagudu, alongside the Minister of State for Petroleum, Senator Heineken Lokpobiri, defended the parameters for the proposed N54.4 trillion 2026 budget.
The assumptions include oil production of 1.84 million barrels per day, an oil price benchmark of $64.85 per barrel, and an exchange rate of N1,512 to one US dollar.
(Editor: Roluke Ogundele)
