The Nigerian Senate has taken a bold stand against the government's practice of implementing multiple budgets in a single year, a move that has sparked controversy and raised concerns. This issue came to light during a discussion on the Medium Term Expenditure Framework and Fiscal Strategy Paper for 2026-2028. The Senate, through its Finance Committee, directed the Federal Inland Revenue Service (FIRS) to aim higher and boost its revenue target for 2026, increasing it from N31 trillion to N35 trillion. But here's where it gets interesting: the government has already faced a significant shortfall of N30 trillion in its revenue target for 2025, which was set at N40 trillion.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, explained that while the 2024 budget was fully funded, the 2025 budget fell short. He stated, "The capital components of the 2024 budget were fully funded through the realization of N26 trillion in revenue. However, for 2025, only N10 trillion has been realized out of the projected N40 trillion, resulting in a substantial shortfall of N30 trillion. This has led to the federal government rolling over 70% of capital projects from the 2025 fiscal year to 2026."
Several Senators, including Danjuma Goje, Olalere Oyewumi, Victor Umeh, and Aminu Iya Abbas, expressed their dissatisfaction with the multiple budget implementations. Senator Goje emphasized, "This unacceptable situation of multiple budget implementations must end this year. We need to normalize our budget processes from next year onwards."
Senator Oyewumi urged the government to present more realistic budget proposals, saying, "Since budget proposals are not dictated by the governed, the government should ensure that its proposals are achievable to avoid non-implementation, which often leads to multiple budgets in subsequent years."
Senators Victor Umeh and Ireti Kingibe questioned why the government did not utilize the borrowings approved by the National Assembly to address the revenue gaps. In response, Senator Sani Musa, Chairman of the Finance Committee, promised that budget normalization would begin in 2026.
Senator Musa announced the formation of a three-man ad hoc committee to work with the Minister of Finance and the Accountant-General of the Federation to ensure the payment of local contractors for projects executed in 2024 before the budget expires on December 31st. The Committee also directed FIRS Chairman, Mr. Zacch Adedeji, to work towards achieving the N35 trillion revenue target for 2026.
Adedeji acknowledged that FIRS had realized N20.2 trillion in 2024 and N25.2 trillion in 2025 but noted that these gains were often undermined by the practice of multiple budget implementations within a fiscal year.
The Ministers of Budget and Economic Planning, Senator Atiku Bagudu, and Minister of State (Petroleum), Senator Heineken Lokpobiri, defended the parameters set for the N54.4 trillion 2026 budget, including an oil production benchmark of 1.84 million barrels per day, an oil price benchmark of $64.85 per barrel, and an exchange rate of N1,512 to 1 USD.
This move by the Senate to address the budget concerns and direct FIRS to boost revenue has sparked a debate. What are your thoughts on the matter? Do you think the government's budget practices need a revamp? Share your opinions in the comments below!
