The Senate, through its Committee on Finance, on Monday strongly disapproved of the federal government’s repeated practice of implementing multiple budgets within a single fiscal year—a practice that played out in 2025. The lawmakers also tasked the Federal Inland Revenue Service (FIRS) to raise its projected revenue target for 2026 from N31trillion to N35trillion, even as the federal government lamented a N30trillion shortfall from its N40trillion revenue projection for 2025.
The concerns of the Senators came to the fore during an interactive session between the Finance Committee, chaired by Senator Sani Musa (Niger East), and key managers of the nation’s economy on the 2026–2028 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP). The meeting also reviewed the implementation of the 2024 and 2025 budgets and considered projections for the 2026 budget.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, provided detailed context on the fiscal performance of the past two years. He stated that while revenue projections for the 2024 budget were largely met, the 2025 budget fell significantly short of expectations.
“Funding for the capital components of the 2024 budget was fully realised through a total revenue of N26trillion. However, the 2025 fiscal year has not fared as well,” Edun said.
“Out of a projected N40trillion revenue for 2025, only N10trillion has been realised, leaving a shortfall of N30trillion. Consequently, 70 per cent of capital projects planned for 2025 had to be rolled over into the 2026 budget.”
The Minister attributed the shortfall to structural revenue challenges, noting that the federal government has relied on treasury management and financial engineering to bridge funding gaps. He emphasised that measures have been implemented to improve revenue collection through automation, digitalisation, and process re-engineering, including directives for revenue-generating agencies to remit funds directly into the Treasury Single Account (TSA).
Senators attending the session did not mince words, expressing displeasure with the multiple budget rollovers, which they described as disruptive to economic planning and project implementation.
Senator Danjuma Goje (Gombe Central) said, “This ugly situation of implementing multiple budgets in a single fiscal year must end. It is unacceptable to Nigerians. Things must be normalised starting next year.”
Senator Olalere Oyewumi (Osun West) added, “Budgetary proposals are meant to reflect the needs and priorities of the governed. If they are unrealistic, non-implementation is inevitable, leading to multiple budgets in subsequent years. The government must present realisable proposals moving forward.”
Senators Victor Umeh (Anambra Central) and Ireti Kingibe raised questions about why the federal government did not utilise borrowing approvals granted by the National Assembly to fill revenue gaps, pointing out that multiple budgets complicate fiscal management and strain economic planning.
Chairman Musa reassured the Senators and Nigerians that normalisation of budget projections and implementation would commence in 2026.
He announced the formation of a three-man ad hoc committee tasked with liaising with the Minister of Finance and the Accountant-General of the Federation to ensure timely payment to local contractors for projects executed in 2024 before the expiration of the current budget on December 31
In line with the Senate’s push for stronger revenue mobilisation, the Finance Committee directed FIRS Chairman Zaccheus Adedeji to raise the agency’s revenue target for 2026 to N35trillion from the previously projected N31trillion.
Adedeji reported that FIRS realised N20.2trillion in 2024 and N25.2trillion in 2025. However, he noted that the gains are often diluted by multiple budget implementations within a fiscal year. “Revenue being realised by FIRS and other agencies, such as Customs, is being swallowed and made insufficient by the practice of rolling over budgets,” he said.
The Minister of Budget and Economic Planning, Senator Atiku Bagudu, alongside the Minister of State for Petroleum, Senator Heineken Lokpobiri, defended the assumptions underlying the proposed N54.4trillion 2026 budget.
These include oil production of 1.84 million barrels per day, an oil price benchmark of $64.85 per barrel, and an exchange rate of N1,512 to the US dollar. They stressed that these parameters are realistic and critical for the planning of revenue and expenditure in the coming fiscal year.
The Finance Minister reiterated that the government’s focus is not on increasing borrowing but on boosting revenue through broad-based mobilisation of savings and public-private partnerships.
“For sustainable economic growth, especially in a country where about 90 per cent of economic activity is driven by the private sector, there must be concerted efforts to mobilise savings and investments across the population,” Edun said.
The Senate’s interventions underscore growing concern over fiscal management and the need for structural reforms in revenue generation. By pushing for more realistic budget proposals, timely implementation, and higher revenue targets, lawmakers are signalling a commitment to strengthening fiscal discipline and ensuring that government projects are executed efficiently.
With the FIRS revenue target raised and the assurance of budget normalisation from 2026, Nigeria’s fiscal authorities face renewed pressure to balance ambitious economic plans with the realities of revenue generation and expenditure management.
