The Nigerian Senate, through its Committee on Finance has expressed concern over the Nigerian government’s practice of implementing multiple budgets within a single fiscal year, a situation experienced in 2025.
During an interactive session on the 2026–2028 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), the Senate tasked the Federal Inland Revenue Service (FIRS) to increase its projected revenue target for 2026 from N31 trillion to N35 trillion.
This comes as the Nigerian government reported a shortfall of N30 trillion from its N40 trillion revenue target for 2025.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun explained that while revenues for the 2024 budget were fully realised, the 2025 budget fell short.”
“Funding for the capital components of the 2024 budget has been met through realization of the total projection of N26 trillion revenue, but that of 2025 has not been met. Out of the projected N40 trillion revenue for 2025, only N10 trillion has been realized, leaving a shortfall of N30 trillion and consequently making the federal government roll over 70% of capital projects captured in 2025 fiscal year to 2026,” he said.
Several Senators, including Danjuma Goje (Gombe Central), Olalere Oyewumi (Osun West), Victor Umeh (Anambra Central), and Aminu Iya Abbas (Adamawa Central), expressed displeasure with the practice of multiple budget implementations.
Senator Goje said: “This ugly situation we found ourselves on multiple budget implementations should please end by this year. It is not acceptable. Things must be normalized from next year.”
Senator Oyewumi urged the government to present realistic budget proposals saying “Since budgetary proposals were not given to the government by the governed, government should please present realisable proposals to avoid non-implementations which usually dovetail into multiple implementations in subsequent years.”
Senators Victor Umeh and Ireti Kingibe questioned why the Nigerian government did not use borrowings approved by the National Assembly to fill the revenue gaps.
Senator Sani Musa, Chairman of the Finance Committee, promised that budget normalisation would start in 2026.
He announced that a three-man ad hoc committee would liaise with the Minister of Finance and the Accountant-General of the Federation to ensure payment of local contractors for projects executed in 2024 before the budget expires on 31st December.
The Committee also directed FIRS Chairman, Mr. Zacch Adedeji, to work toward realising N35 trillion as the 2026 revenue target.
Adedeji noted that “while FIRS realized N20.2 trillion in 2024 and N25.2 trillion in 2025, the gains are often eroded by multiple budget implementations within a fiscal year.”
The Minister of Budget and Economic Planning, Senator Atiku Bagudu, and Minister of State (Petroleum), Senator Heineken Lokpobiri, defended the parameters set for the N54.4 trillion 2026 budget, including 1.84 million barrels of oil production per day, $64.85 per barrel oil price benchmark, and N1,512 to 1 USD exchange rate.