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The Nigerian Senate has questioned the government’s economic team over what lawmakers described as persistent weak budget implementation, particularly the low release of capital funds to ministries, departments and agencies (MDAs).
The concerns were raised during an interactive session between the Senate Committee on Appropriations and members of the economic team on the implementation of the N58.472 trillion 2026 budget, as well as the completion of capital components of the 2024 and 2025 budgets by March 31, 2026. Senator Solomon Adeola chaired the session.
Responding to questions on funding for the capital components of the 2024 and 2025 budgets, Finance Minister and Coordinating Minister of the Economy, Wale Edun, said both budgets were still receiving funding. However, several lawmakers indicated they were not satisfied with the explanation.
Chairman of the Nigeria Revenue Service, Zacch Adedeji, told the committee that unrealistic revenue projections were undermining effective implementation.
He said budget performance depends on credible forecasts, noting that problems arise when spending plans are based on overly optimistic assumptions about available resources. According to him, budgeting within realistic limits makes execution manageable, but overestimating revenue could create serious fiscal challenges if expected funds fail to materialise.
“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.
In his remarks, Adeola maintained that the projections under scrutiny were prepared by the executive arm of government. He pointed to a significant gap between projected and actual oil revenues, questioning how performance levels of about 18 per cent in one year could justify projections of 36.5 per cent the following year when outcomes remained below expectations.
He asked whether the Senate should consider reducing the N58.472 trillion 2026 budget or proceed while making adjustments, noting that debt financing levels were already high. He added that disposing of certain government assets to reduce debt could lower the overall debt stock and ease future borrowing costs.
Minister of State for Finance, Doris Uzoka-Anite, assured lawmakers that implementation of the capital components of the 2024 and 2025 budgets would be concluded before the March 31, 2026, deadline. She said payments for outstanding 2024 capital projects were commencing immediately and that funding processes for the 2025 budget had begun.
According to her, MDAs had been directed to upload their cash plans by Monday, after which disbursements would start, provided they completed the required documentation.
