The Senate on Tuesday confronted the President’s economic team over the poor implementation of the 2025 budget and what it described as unrealistic assumptions underpinning the proposed ₦58.7 trillion 2026 budget, raising the possibility of reducing the estimate.
During a tense budget defence session before the Senate Committee on Appropriations, several lawmakers expressed concern over widespread complaints from Ministries, Departments and Agencies (MDAs) regarding the non-funding of the 2025 budget.
Some senators described the exercise as one of the worst budget defence sessions in recent times, citing unpaid contractors, a controversial centralised payment system, inadequate capital releases, and a rising debt profile as major areas of concern.
Dissatisfied with the explanations provided by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the committee turned to the Chairman of the National Revenue Service, Zacch Adedeji, for further clarification.
He stated that previous budgets were often built on faulty assumptions, noting that unrealistic projections had consistently created implementation challenges.
“When assumptions are not realistic, there will be problems. That is what we intend to correct this year. It must be based on realistic budgeting. Efficiency lies in what you can actually execute,” he said, urging lawmakers to adopt a new approach anchored on credible revenue projections.
However, the Chairman of the Committee, Senator Adeola Olamilekan, questioned the economic team’s confidence in delivering the proposed budget.
“The indication is that you do not have full confidence in the ₦58.7 trillion budget. Do we reduce this budget or leave it as it is? If it is faulty and we are not reducing it, are you saying you will still meet the target?” he asked.
Responding to further inquiries on the performance of the 2025 budget, the Minister of State for Finance disclosed that the Federal Government was prepared to begin settling outstanding payments.
She revealed that MDAs had been directed, effective immediately, to upload their cash plans for all pending obligations, assuring the committee that payments for 2025 would commence immediately or, at the latest, by Monday.
Following the exchanges, the committee proceeded into a closed-door session.
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