Budget: Senate Grills Economic Team, Questions N58.472trn 2026 Unrealistic Assumptions

The Senate through its Committee on Appropriations, has grilled the federal government’s economic team over what it described as unrealistic budget assumptions and persistent poor implementation of annual budgets, particularly the low release of capital votes to Ministries, Departments and Agencies (MDAs).

The committee, chaired by Senator Solomon Olamilekan Adeola (Ogun West), raised the concerns yesterday during a critical interactive session with members of the economic team on the feasibility of implementing the proposed N58.472 trillion 2026 budget and completing the capital components of the 2024 and 2025 budgets by March 31, 2026.

The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, was first to face questioning. His explanation that the capital components of the 2024 and 2025 budgets were still being funded did not satisfy committee members, who pressed for clearer timelines and measurable outcomes.

Defending the economic team, the Chairman of the Nigeria Revenue Service (NRS), Dr Zacch Adedeji, said unrealistic revenue projections often undermine effective budget implementation.

“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,” he added.

Senator Adeola reminded the revenue chief that budget proposals originate from the executive arm, of which the NRS is a part.

“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.

He cited discrepancies in revenue performance, questioning how an 18 per cent performance in one year could justify projections of 36.5 per cent the following year, given that actual outcomes remain 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,” Adeola added.

Responding, the Minister of State for Finance, Dr Doris Nkiruka Uzoka-Anite, assured the committee that full implementation of the 30 per cent capital component of the 2024 and 2025 budgets would be completed 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 Minister of Budget and Economic Planning, Senator Atiku Bagudu, and the Accountant-General of the Federation, Shamsedeen Babatunde Ogunjimi, were also present at the session.

The committee later went into a two-hour closed-door session with the economic team, amid indications that lawmakers may consider reviewing downward the proposed N58.472 trillion 2026 budget if revenue assumptions are not recalibrated to reflect prevailing economic realities.