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The Digest:

The Senate has queried the federal government's economic team over persistent poor budget implementation, particularly the low release of capital votes to MDAs. During an interactive session chaired by Senator Solomon Adeola, lawmakers expressed dissatisfaction with explanations from Finance Minister Wale Edun regarding funding of the 2024 and 2025 capital budgets. Nigeria Revenue Service Chairman Zacch Adedeji cited unrealistic projections as hindering implementation, stating: "Efficiency is not about budget size but about how much can actually be implemented." Adeola countered that projections originated from the executive, questioning the gap between projected and realised oil revenue. Ministers assured that capital components of the 2024 and 2025 budgets would be completed by March 31, 2026, with payments for outstanding 2024 projects commencing immediately. The committee held a two-hour closed-door session with the economic team on the N58.472 trillion 2026 budget.

Key Points:
  • Poor capital release implementation stalls critical infrastructure and service delivery.
  • It reflects a disconnect between revenue projections and actual economic performance.
  • Citizens bear the brunt of delayed projects, while MDAs struggle with funding uncertainty.
  • This signals the need for more realistic budgeting and improved revenue forecasting.
  • The timing, with the 2026 budget pending, demands urgent corrective measures.

Senate grills economic team over poor capital releases, with ministers promising completion of outstanding 2024/2025 projects by March 31.

Sources: The Cable, Senate Committee on Appropriations