The presidential Economic Team led by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, as well as the Minister of Budget and National Planning, Atiku Bagud, the Executive Chairman of the Nigeria Revenue Service, Zach Adedeji have appeared before the House Committee on Appropriation.
The meeting was to discuss the performance of the 2025 budget as well as the proposal for 2026.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said that before the administration of President Bola Tinubu, Nigeria was a heavily reliant on ways and means financing to cover large fiscal deficit while NNPC funded the petrol subsidy through and under recovery arrangement.
Mr. Edin also said that “the president had halted the unchecked ways and means already at 30 trillion which was essential for restoring macro economic stability but it did need a large funding gap.”
He noted that the issue of the zero performance in the 2025 budget was delegated to the Minister of State for Finance.
On his part, the Minister of Budget and National Planning, Me. Atiku Bagudu, said that “in various sessions with the National Assembly, one of the agreements was to move 70 percent of the capital for 2025 into 2026.”
Bagudu said on the budget performance feeders, the ministry of budget and planning, including the budget office, relies on the office of the accountant general and Ministry of Finance for data about budget implementation.
“Steps are being taken. The president has demonstrated that he has issued an executive order which we believe is consistent with the agreement reached that 2026 budget that will be coming will have chances of it being better funded would be put in place,” he said.
The Executive Chairman of the Nigeria Revenue Service, Zach Adedeji, has said in the light of the tax reforms, the total target for taxes, royalty and other minerals is N40.7 trillion of 2026.
“In the light of the tax reforms that transfer petroleum and mineral royalty and other revenue to the NRS, the total target for taxes, royalty and other minerals is 40.7 trillion.
“We believe that with the support of the House that we would be able to achieve what we propose,'” he said.
Mr. Adedeji said that for the year 2025, the revenue target for the service was N25.2 trillion, an increase of N3.5 trillion compared to actual revenue collected in 2024.
He said the service succeeded in the 2025 target by collecting N28.23 trillion due to exceptional performance from non oil taxes.
Mr. Adedeji said non oil taxes exceeded their target by collecting N21.46 trillion an increase of 3.4 trillion. He announced that oil taxes fell short of the target by 5.2 percent.
He said overall the Service exceeded its target by 3 trillion which is 12 percent compared to the target we had for 2025.
“When you compare 2025 performance to 2024, the service collected N6.5 trillion more than what we did in 2024. That is an increase of 30.3 percent. This is driven significantly by non-oil taxes,” Mr. Adedeji said.
He said “for the 2026 target in the light of the forecast that we have for oil, from that N25.2 trillion that we did last year, we forecasted that we would do N32.14 trillion for 2026 which is N3.85 trillion higher than the actual collection in 2025.”
He said the increase is forecast on oil related revenue to non-oil is due to higher production forecast from 1.7 million per day in 2025 to 1.8 million barrels per in 2026.
Mr. Adedeji said; “For the tear 2025, the revenue target for the service was 25.2 trillion, an increase of 3.5 trillion compared to actual revenue collected in 2024. The service has succeeded in 2025 target by collecting 28.23 trillion. This is due to exceptional performance from non oil taxes.
“Non oil taxes exceeded their target by collecting 21.46 trillion an increase of 3.4 trillion. Meanwhile oil taxes fell short of the target by 5.2 percent. Overall the service exceeded it’s target by 3 trillion which is 12 percent compared to the target we had for 2025.
“When you compare 2025 performance to 2024, the service collected 6.5 trillion more what we did in 2024. That is an increase of 30.3 percent. This is driven significantly by non oil taxes.
“For the 2026 target in the light of the forecast that we have for oil, from that 25.2 trillion that we did last year, we forecasted that we would do 32.14 trillion for 2026 which is 3.85 trillion higher than the actual collection in 2025. The increase is forecast on oil related fo non oil is due to higher production forecast from 1.7 million per day in 2025 to 1.8 million barrels per in 2026.”
The Chairman of the House Committee on Appropriations, Mr. Abubakar Bichi, said that it was necessary to have the interaction with the team in respect of the 2026 appropriation bill.
“This is for us to study and consider and approve the request. We decided to engage the team of the president to discuss the previous performance of the 2025 as well as the proposed 2026.
“We have decided to engage the NRS Chairman to shed more light on the revenue in terms of the 2026 projections. In 2025 we have achieved about 28 trillion from our revenue, from the target of 25 trillion.
“We need to have more information from you so that Nigerians can know what is going on.” Mr. Bichi said.
The lawmakers also queried the zero capital performance in the 2025 budget.