The Senate, on Thursday, urged the Federal Government to revert to the old payment system for contractors, citing the current centralized system’s failure to pay contractors for projects executed in 2024 and 2025.
The Senate Committee on Finance, led by Senator Sani Musa, made the recommendation during an interactive session with the economic management team, headed by Finance Minister Wale Edun.
The Committee also advocated for replacing the Envelope budgeting system with a priority-based model, citing its ineffectiveness.
Senator Musa emphasized the need for a new approach, saying, “The Envelope system of budgeting has failed and needs to be replaced by a priority-based model. The incremental allocation model has outlived its usefulness. It promotes routine expenditure expansion rather than strategic prioritization.”
The committee also called for the sack of Hussaini Ishaq Magaji, SAN, Registrar-General of the Corporate Affairs Commission (CAC), for persistently refusing to appear before the committee. Senator Musa stated, “We have resolved to write to President Bola Tinubu to sack the Registrar-General of CAC for his actions.”
The economic management team assured the committee that the outlook for the 2026 budget is positive, with a proposed N58.472 trillion budget. Minister Edun explained that the current N152 trillion budget profile was not solely accumulated through borrowings.
Senator Atiku Bagudu, Minister of Budget and National Planning, emphasized the need for prioritization, saying, “Prioritization will start with the MDAs, bringing forward growth-enhancing projects. Then the Economic Management Team will review those projects, and finally, Mr. President will decide financing based on priorities, particularly for capital projects.”
The committee urged the economic team to collaborate with the National Assembly to address the country’s economic challenges and ensure prompt payment of contractors.
Senator Musa stressed the importance of restoring strict adherence to the annual budget cycle, saying, “Budgets must be time-bound and measurable. If, by December, we cannot assess ourselves realistically, then the system is failing.”
The economic team assured the committee of its commitment to improving budget planning and implementation, and prompt payment of contractors.
The Senate’s recommendations aim to address the country’s economic challenges and promote transparency and accountability in government spending.
