In a move to ensure fiscal accountability and informed planning, the Nigerian Senate, through its Committee on Finance, has directed the managers of the nation’s economy to submit a comprehensive report on the performance of the 2024 budget and projections for the 2025 capital budget within two weeks.
The directive followed a closed-door session between the Committee, led by Senator Mohammed Sani Musa (Niger East), and key economic managers Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun; Accountant General of the Federation, Mr Samsudeen Ogunjimi; and Director-General of the Budget Office, Mr Tanimu Yakubu.
Senator Musa stated that deliberations on the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2026–2029 would not proceed until the requested reports are submitted by 23 October 2025.
“We have reviewed the current position of the 2024 budget and discussed expectations for the 2025 budget. While progress is being made, more needs to be done,” Musa said.
He noted that the Committee had received briefings on funds released so far, warrants signed, and capital project implementation updates. He also confirmed that President Bola Tinubu had written to the National Assembly seeking additional loans to support the 2025 budget.
However, before the session went into a closed meeting, contrasting positions emerged between the Minister of Finance and the Director-General of the Budget Office regarding the budgets’ performance.
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While Mr Edun described the 2024 capital component as performing strongly with optimistic projections for 2025, Mr Yakubu highlighted fiscal strain, citing that several underlying assumptions failed to hold.
According to Yakubu, oil revenue projections based on $75 per barrel fell short by $10–$15 due to global price fluctuations, while inflation and borrowing costs exceeded expectations.
He added that the fiscal impact of the Petroleum Industry Act (PIA) 2022 further reduced government revenue, as 30 per cent of gross oil revenue and profits are now retained for upstream operations under NNPC, cutting Federation Account allocations by nearly 70 per cent.
Yakubu also revealed that crude oil output remained below projections approved in the MTEF, worsening fiscal pressures.
Senator Musa reaffirmed that the Committee would reconvene on 23 October to review the detailed reports before advancing discussions on the 2026–2029 MTEF and FSP.
“These submissions are crucial to guide our oversight and ensure transparency in the nation’s fiscal planning process,” he concluded.
