While the Presidency displayed paper proofs that the economy has returned to the part of progress, senators expressed worry the average Nigerian is not feeling the positive impact of a virile economy.
  
The senators also raised concerns about the Federal Government’s decision to peg inflation at 15 per cent in the 2025 budget projections, describing it as overly ambitious given the present economic climate.  
  
Amid the foregoing, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the Minister of Budget and Economic Planning, Abubakar Bagudu, will have to clarify, to the National Assembly, the executive arm’s commitment to economic diversification, particularly through the solid minerals sector.
  
The senators’ worry followed the presentation by Edun during a legislative session on the 2025 Appropriation Bill. Edun, in his address, expressed optimism about Nigeria’s economic direction, highlighting a projected Gross Domestic Product (GDP) growth rate of 3.5 per cent and increased revenue from both the oil and non-oil sectors. He also indicated that the economy is enjoying a leap.
  
However, senators wondered how the economy could have a positive outlook without impacting the populace positively.  They also questioned the feasibility of the inflation target, citing persistent challenges such as exchange rate instability, high interest rates, and rising food prices.
  
Leading the discussion, Orji Uzor Kalu (APC, Abia North) noted that while the Central Bank of Nigeria (CBN) has taken measures to combat inflation through monetary tightening, structural economic issues remain unresolved.
  
“Pegging inflation at 15 per cent assumes a level of fiscal discipline and policy coordination that we are yet to see materialise. It is not just about monetary policy; we need aggressive efforts on food security, energy stability and industrial output,” Kalu remarked.
  
Tokunbo Abiru (APC, Lagos East) added that the government’s reliance on an envelope budgeting system could further strain fiscal resources. He added, “Inflation is not just a monetary phenomenon. If we are not addressing revenue leakages and inefficiencies in public spending, achieving this target will remain a mirage.”
  
In response, Edun explained that the 15 per cent inflation benchmark reflected the CBN’s confidence in its monetary policy framework and the government’s efforts to boost food production.  
  
He said, “CBN is indicating a 15 per cent inflation rate by the end of 2025; it is achievable. We are working hard towards it. It is their signalling of where inflation is expected to lie that has given us this interest rate. However, we all have a role to play.  
  
“Even if monetary policy helps to try to bring down inflation, on the fiscal side, it is important that we contribute to lower inflation, not just by really squeezing demand, but by increasing supply.”
  
According to the minister, under President Bola Tinubu, the economy is growing positively, as the budget deficit as a percentage of Gross Domestic Product (GDP) is falling while the debt service ratio as a percentage of revenue is improving.

Economic analysts are divided on the issue. While some see the government’s optimism as a sign of progress, others warn that external shocks, such as global oil price volatility and geopolitical tensions, could derail the inflation target.
  
Dr Amina Yusuf, an economist at the University of Abuja, stated, “The government is relying heavily on projections without addressing the structural bottlenecks that fuel inflation. The focus should be on building domestic capacity, especially in agriculture and manufacturing.”
  
In his opening remarks, the Chairman, Senate Committee on Finance, Sani Musa, urged Ministries, Departments and Agencies (MDAs) to present a budget that is realistic, implementable, focused and tailored towards the attainment of measurable outcomes.

THE Senate and House of Representatives Joint Committees on Solid Minerals raised concerns over the inadequate funding allocated to the Ministry of Solid Minerals in the 2025 budget. 
  
The ministers, along with the Director-General of the Budget Office of the Federation, Tanimu Yakubu, are expected to appear before the committees today. While summoning the ministers, the committee raised concerns over the paltry funding of the Ministry of Solid Minerals in the 2025 budget.
  
Edun and Bagudu are to appear before the committees in the company of Yakubu.  The Minister of Solid Minerals, Dele Alake, appeared yesterday to express the frustrations he faced fighting hard to increase the budgetary allocation to the ministry without success. He told the lawmakers that all his efforts could only get the ministry an initial envelope of N5 billion.
  
“To let you know, the envelope we first received was N5 billion. I don’t know if you are aware of that,” he informed the members.  When asked why his close relationship with Tinubu didn’t translate to getting improved funding for his plans for the solid minerals sector, Alake replied that not everything he discussed with the President could be made public.   He, however, said the President was not to blame for the funding challenges the ministry and its plans had suffered.
 
 Members of the committee mostly expressed surprise that a government that was committed to diversifying the economy did not make adequate budgetary provisions for solid materials development, one of the most important sectors it could use to rival earnings from the oil and gas industry.
  
The committees later postponed the budget defence of the ministry till today to hear from the invited ministers and the DG before taking any further decisions.