As deliberations for the 2026 budget estimate continue in the Senate, there are indications that the N58 trillion proposed for the fiscal year may be trimmed due to poor implementation and unrealistic benchmarks.
During a tense budget defence session before the Senate Committee on Appropriations on Thursday, several lawmakers expressed concerns over widespread complaints of non-funding of the 2025 budget by Ministries, Departments and Agencies (MDAs).
Some of the top government officials at the meeting today were the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun; the Minister of State for Finance, Mrs Doris Uzoka-Anite; and the Chairman of the National Revenue Service (NRS), Mr Zacch Adedeji.
Recall that in December, President Bola Tinubu presented the 2026 federal budget of N58.18 trillion, with N5.41 trillion allocated to defence and security, representing approximately 9.3 per cent of the total expenditure.
Senators raised some issues, including unpaid contractors, a controversial centralised payment system, inadequate capital releases, and a rising debt profile, as major areas of concern.
In response, Mr Adedeji explained that previous budgets were often built on faulty assumptions, noting that unrealistic projections had consistently created implementation challenges.
“When assumptions are not real, there will be a problem. 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.
On his part, the Chairman of the Committee, Mr 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 N58.7 trillion budget. Do we reduce this budget or leave it as it is? If it is faulty and we are not reducing it, then you are saying you will meet it?” 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.
Business Post reports projections in the 2026 budget are based on a conservative crude oil benchmark of $64.85 per barrel, crude oil production of 1.84 million barrels per day, and an exchange rate of N1,400 to the US Dollar.