The Senate Committee on Finance on Monday, expressed concern over the current trend where the Federal Government is juggling multiple budgets without a clear track record of their implementation.
The committee specifically frowned upon the current situation where the implementation of the 2024 budget is still ongoing in December 2025 while the 2025 budget remained in limbo as the government prepares to present the 2026 Appropriation Bill to the National Assembly.
The observations came to the fore as the committee met with key officials of the government’s economic team to deliberate on the 2026 – 2028 Medium Term Expenditure Framework ( MTEF) and Fiscal Strategy Paoer ( FSP), a necessary step towards setting the template for the 2026 Budget.
Chairman, Senate Committee on Finance, Senator Sani Musa ( Niger East), said the practice of implementing more than one budget in a fiscal year by the federal government as being experienced in 2025 does not make for accountability and transparency.
Other members of the committee also raised several questions on the state of the two budgets running concurrently particularly in the face of government’s fresh request to roll over seventy percent (70%) of the 2025 budget onto the 2026 budget.
The lawmakers were also miffed by the inability of the government to settle local contractors who had executed some projects under the 2024 budget and wondered why the government has been unable to meet its obligations in spite of claims that it’s revenue generating met and even surpassed their targets during the budget year.
Other lawmakers also challenged the economic team to explain how all the loans approved by the National Assembly supposedly to bridge evenue gaps were deployed.
The Minister of Finance and Coordinating Minister of the Economy , Wale Edun , who had a hard task explaining the situation said the challenge was essentially an issue of insufficient revenue but said efforts were being made to address the issue.
Edu explained that the capital component of the 2024 budget was extended into 2025 and and the budget has been largely implemented, both in terms of recurrent and capital expenditure.
“With regard to capital expenditure, funding is fully available for the finalized 2024 capital budget up to September. Funding is available for a portion of it, while the remaining portion is planned to be rolled over into the 2026 budget.
“Similarly, for the 2025 capital budget, funding arrangements have been made and approvals issued. About 30 per cent of the capital budget is currently funded, with plans—subject to the cooperation and support of the National Assembly—to roll over the remaining portion into the 2026 budget.
“Let me now provide context on two important areas, starting with revenue. The reality is that revenue performance has consistently fallen short of budget estimates. In 2024, total revenue was estimated at about ₦25.9 trillion, while actual federal government revenue stood at approximately ₦8.27 trillion.
“As a result, treasury management and financial engineering measures were employed to bridge the gap, leading to adjustments in budget implementation.
“For 2025, revenue was estimated at about ₦40 trillion. However, actual federal government cash revenue is projected to be roughly ₦10 trillion.
“Once again, significant effort has been required to source funding from various means, including borrowing.
“This historical trend clearly shows the need for a far more robust and realistic revenue effort going into 2026,” he said.
In response, Edun said, the government has started developing a comprehensive revenue optimisation programme focused on automation, digitalisation, the application of technology, and process re-engineering.
“As part of this initiative, four circulars have recently been issued directing revenue- and investment-generating MDAs to migrate to a new transparent digital platform.
“These MDAs are required to stop collecting revenue in cash and to cease deducting expenses, costs, or charges before remitting funds to the Treasury Single Account (TSA).
“This reform will be a critical component of the 2026 budget, particularly in light of the fact that revenue estimates over the past two years have significantly exceeded actual collections.
“It is also important to place revenue performance in proper context. Despite revenue performance of about 25 per cent in some instances, salaries, pensions, statutory transfers, and debt service—both domestic and foreign—have all been fully paid.
“On borrowing, total public debt currently stands at approximately ₦152 trillion, compared to about ₦70 trillion in 2023.
“A significant portion of this increase—about ₦30 trillion—arose from bringing previously unrecorded obligations onto the government’s books, thereby improving transparency and accountability,” he said.
Apparently not satisfied with the scenario, the committee resolved to set up a three – man ad – hoc committee to laise with the Minister and the Accountant – General of the Federation to facilitate the payment of local contractors for projects executed in 2024 before the expiration of the budget cycle on 31st of this month.
The committee also tasked iChairman of the FederalInlandRevenueService( FIRS), Zaccheus Adedeji , to work towards generating a targrt of N35trillion revenue for 2026 fiscal year as opused to the earlier projection N31trillion.
Earlier. the FIRS boss had disclosed that the agency, realized N20.2trillion revenue in 2024 and N25.2trillion in 2025 .He however said that the huge revenue being realized by FIRS and other agencies like Customs , are being swallowed and made insufficient by multiple budget implementations in a fiscal year.
The Minister of Budget and Economic Planning , Senator Atiku Bagudu and Minister of State ( Petroleum ) , Senator Heineken Lokpobiri in their submissions , defended the parameters set for the N54. 4trillion 2026 budget.
The parameters included 1.84million barrels iof oil production per day , $64.85 oil price benchmark , N1, 512.00 to 1USD as exchange rate etc.
