Senate Slams Economic Team, Unrealistic Budgets Face N58trn Axe

Patrick Isaac

The Senate fiercely grilled the Federal Government’s economic team on Thursday over unrealistic budget assumptions and chronic underfunding of capital projects, signaling it may slash the proposed N58.472 trillion 2026 budget.

This showdown unfolded during an interactive session with the Senate Committee on Appropriations, chaired by Senator Solomon Adeola (Ogun West).

Lawmakers dissected the dismal performance of the 2024 and 2025 budgets while probing the 2026 proposal’s viability.

Adeola voiced deep frustration over repeated poor implementation, especially the near-zero releases of capital votes to Ministries, Departments, and Agencies (MDAs).

He challenged the credibility of revenue forecasts propping up the massive 2026 figure and doubted whether 2024-2025 capital projects could wrap up by March 31, 2026.

Finance Minister and Coordinating Minister of the Economy, Wale Edun, faced the heat first. His claim that prior budgets’ capital components were still being funded didn’t sway the committee.

Nigeria Revenue Service, (NRS) Chairman, Zacch Adedeji pushed back, blaming gaps on overly ambitious projections.

“Budget funding needs realistic targets. Efficiency isn’t about budget size, it’s about what you can actually deliver.” he said.

He warned against overestimating revenues: “Assume you have 10 units and spend accordingly; assume 100, and you’re in trouble if the cash doesn’t show.” Adeola fired back, noting the executive arm including NRS crafted these very proposals.

He highlighted glaring shortfalls, like 18% oil revenue performance followed by optimistic 36.5% projections amid ongoing misses.

“Do we cut the N58.472trn budget now, or adjust later? High debt is already a burden, selling assets could trim debt stock and borrowing costs.”

Minister of State for Finance, Doris Uzoka-Anite, promised full implementation of 2024-2025 capital projects by deadline. “2025 funding kicks off now; 2024 payments start today. Our financial system is live, but MDAs must submit cash plans by Monday.”

Others present included Budget Minister, Atiku Bagudu and Accountant-General of the Federation, Shamsedeen Ogunjimi. After two hours, the committee huddled in closed session.

The session’s fallout could redefine the Senate’s stance on the 2026 budget amid revenue woes, ballooning debt, and shaky fiscal math.