Senate Frowns At Budgetary Carryover, FG’s Multiple Fiscal Policy, Charges FIRS To Increase 2026 Budgetary Projection To N40trn
•By Admin
ABUJA – THE Senate on Monday asked the Federal Inland Revenue Service (FIRS) to increase its projected revenue target for 2026 from N31trillion to N35trillion following the federal government’s complaints of shortfalls of N30trillion from the N40trillion revenue target for 2025.
It also expressed displeasure at the ongoing culture of budget carryover by the federal government, as seen in the 2025 fiscal year.
This happened during an interactive session the Finance Committee , Chaired by Senator Sani Musa (Niger East), had with leading Managers of the Nation’s economy on the 2026 – 2028 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, had in his contextual explanations on projections for 2026 budget and implementation of the 2024 and 2025 budgets, informed the committee that while revenues for 2024 budget have been met, that of 2025 have not been met.
“Funding for the capital components of the 2024 budget have been met through realization of the total projection of N26trillion revenue but that of 2025 have not been met.
“Out of projected N40trillion revenue for 2025 fiscal year , only N10trillion have been realized, leaving a shortfall of N30trillion and consequently , making the federal government roll over 70% of capital projects captured in 2025 fiscal year to 2026 “, he said .
Worried by the submission , some members of the committee like Senators Danjuma Goje (Gombe Central), Olalere Oyewumi (Osun West), Victor Umeh (Anambra Central), Aminu Iya Abbas (Adamawa Central ) etc, expressed displeasure with multiple budget implementations in a fiscal year.
Senator Goje in his remarks said the practice of implementing multiple budgets in a single year is unacceptable to Nigerians.
“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 “, he said.
Senator Oyelere in his comment told the Minister that since budgetary proposals were not given to the government by the governed, the government should please present realizable proposals to avoid non – implementations which usually dovetailed into multiple implementations in subsequent years.
Senator Victor Umeh and Ireti Kingibe in their remarks, wondered why the federal government did not fill the missing gaps in revenue targets, with borrowings approved for it from time to time by the Senate and by extension, the National Assembly.
Senator Sani Musa in his capacity as Chairman, however came to the rescue of the Minister by assuring his colleagues and by extension, Nigerians that the required normalization in budget projections and implementation shall be done from 2026.
He added that 3 – man ad – hoc committee shall be set up by the committee to liaise with the Minister and the Accountant – General of the Federation on payment of local contractors for projects executed in 2024 before expiration of the budget on 31st of this month.
For FIRS, Senator Sani Musa tasked its Chairman, Zacch Adedeji, to work towards realizing N35trillion as target revenue for 2026 fiscal year and not the earlier projected N31trillion mentioned by the Chairman.
The FIRS boss had in making the projection said the agency under him, realized N20.2trillion revenue in 2024 and N25.2trillion in 2025.
He however said that the huge revenue being realized by FIRS and other agencies like Customs , are being swallowed and made insufficient by multiple budget implementations in a fiscal year.
The Minister of Budget and Economic Planning, Senator Atiku Bagudu and Minister of State (Petroleum), Senator Heineken Lokpobiri in their submissions, defended the parameters set for the N54. 4 trillion 2026 budget.
The parameters are 1.84million oil production per day, $64.85 oil price benchmark, N1,512.00 to 1USD as exchange rate etc.