The Senate Committee on Finance, yesterday, voiced strong disapproval of the Federal Government’s repeated practice of implementing multiple budgets within a single fiscal year, a scenario that played out in 2025.
The lawmakers also tasked the Federal Inland Revenue Service (FIRS) to raise its projected revenue target for 2026 from N31 trillion to N35 trillion, even as the Federal Government lamented a shortfall from its N40 trillion revenue projection for 2025.
The senators’ concerns came to the fore during an interactive session between the Finance Committee, chaired by Sen Sani Musa (APC, 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.
Providing detailed context on the fiscal performance of the past two years, Finance Minister and Coordinating Minister of the Economy, Wale Edun, 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 revenue of N26 trillion. However, the 2025 fiscal year has not fared well,” Edun said. “Out of a projected N40 trillion revenue for 2025, only N10 trillion has been realised, leaving a shortfall of N30 trillion. 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 relied on treasury management and financial engineering to bridge funding gaps. He emphasised that measures had 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.
Danjuma Goje (APC, 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.”
Olalere Oyewumi (PDP, 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.”
Victor Umeh (LP, Anambra Central) and Ireti Kingibe (LP, FCT) raised questions on 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.
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 N35 trillion from the previously projected N31 trillion.
Adedeji reported that FIRS realised N20.2 trillion in 2024 and N25.2 trillion in 2025. However, he noted that the gains are often diluted by multiple budget implementations within a fiscal year.
