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The presentation of the 2026 budget estimates before the National Assembly may face delays as the Senate on Thursday demanded a detailed report on the implementation of the 2024 budget from the Federal Government’s Economic Management Team.
The Senate also requested a progress report on the N54.99 trillion budget passed for 2025.
The country is currently implementing both the 2024 and 2025 budgets, with the capital component of the N23.9 trillion 2024 budget set to expire on December 31, 2025.
The Chairman of the Senate Committee on Finance, Senator Mohammed Sani Musa (Niger East), issued the directive following a meeting with the Minister of Finance, Mr. Wale Edun; the Accountant-General of the Federation, Mr. Samsudeen Ogunjimi; and the Director-General of the Budget Office, Mr. Tanimu Yakubu, at the National Assembly on Thursday.
Sani said the committee resolved that the presentation of the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for the 2026–2029 fiscal years could only be considered after the submission of the requested reports.
The Senate gave the team until October 23 to present the reports.
Speaking after the closed-door meeting, the chairman said, “We have had the position at which the 2024 budget is, and what the position also of the 2025 budget. And the expectations we are having for the ministry to, as a matter of urgency, bring the MTEF for 2026 to 2029. And the minister has briefed us, and we have collectively agreed that we are making progress, but we need to make more progress.
“We have heard from the accountant-general, we have heard from the director of budget, where we are with the budgets. The payments that have so far been released, the warrants that have so far been signed. And also, regarding the 2025 authority to incur the expenditure for agencies to be able to release their capital projects.
“We have all heard that, and we have agreed that we are making progress. And we expect that, with what Mr President has done just this week, sending a letter to the National Assembly, requesting for more approvals to loans, to be able to see that the 2025 budget is also taking adequate care of.
“We have all agreed that we will want documented evidence of the performance of 2024, and our expectations for the 2025 budget, before we start talking about the MTEF for 2026.
“And the Honourable Minister of Finance has agreed to oblige us to give us that progress report. And we have agreed to reconvene, because this meeting is just adjourned. We are going to reconvene on the 23rd of October.”
Addressing the committee earlier, Edun, who doubles as the Coordinating Minister of the Economy, stated that high performance was being recorded in the implementation of the capital component of the 2024 budget and good performance for 2025.
However, the Director-General of the Budget Office, who appeared to disagree with the Minister, told the committee that during the two fiscal years (2024 and 2025), budget implementation was somewhat turbulent, noting that several assumptions were not realised.
Yakubu stated, “We have indeed had a turbulent year — one in which most of the assumptions underpinning the 2024 and 2025 budgets turned out differently from projections.
“Oil revenue, assumed at $75 per barrel, fell short by between $10 and $15 due to global price fluctuations. Inflation also rose beyond projections, affecting borrowing costs and debt service performance, which significantly exceeded targets.
“Furthermore, the unforeseen fiscal implications of the Petroleum Industry Act (PIA) 2022 have compounded our challenges.
“Under the Act, 30% of gross oil revenue and 30% of oil and gas profits are retained for upstream operations, while the Federal Government also bears the NNPC’s operating costs. This has reduced the Federation Account allocation by nearly 70% of what used to accrue.
“In addition, crude oil output has been lower than projected in the MTEF approved by the National Assembly.”
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