SENATE QUERIES FG'S ECONOMIC TEAM OVER POOR CAPITAL RELEASES

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BY JENN NOMAMIUKOR

On Thursday, the Senate asked the federal government‘s economic team about the ongoing issues with how the budget is being carried out. They specifically pointed out that not enough money has been released to ministries, departments, and agencies.

These concerns came up during a discussion between the Senate’s appropriations committee and members of the economic team.
The topic was how well the N58.472 trillion 2026 budget is being implemented, and whether the capital parts of the 2024 and 2025 budgets will be finished by March 31, 2026.

Solomon Adeola, chairman of the committee, presided over the session. Responding to questions regarding the funding of the capital components of the 2024 and 2025 budgets, Wale Edun, minister of finance and coordinating minister of the economy, said the two budgets are still being funded, but lawmakers expressed dissatisfaction with his explanation.

Zacch Adedeji, chairman of the Nigeria Revenue Service (NRS), told the committee that unrealistic projections hinder effective 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.”

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The committee chairman responded that the projections in question originated from the executive arm of government.“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.

“For example, how do we explain 18 percent performance in one year and projections of 36.5 percent the next year when actual performance is still 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.”

Doris Uzoka-Anite, minister of state for finance, assured the committee that the implementation of the capital components 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 committee subsequently went into a closed-door session with the economic team, which lasted about two hours.

Atiku Bagudu, minister of budget and economic planning, and Shamseldeen Ogunjimi, accountant-general of the federation, were also in attendance.