Senate signals possible reduction of N58.472tn 2026 budget over revenue concerns

THE Senate has raised the possibility of cutting down the proposed N58.472 trillion 2026 Appropriation Bill, citing doubts about the reliability of the revenue assumptions driving the spending plan and lingering concerns over poor budget implementation in previous years.

The indication emerged during a tense oversight meeting on Thursday between the Senate Committee on Appropriations and members of the federal government’s economic team. Lawmakers warned that endorsing ambitious figures without firm revenue backing could deepen the country’s already heavy debt burden.

The committee, chaired by Solomon Adeola (Ogun West), convened the session to scrutinise the feasibility of the 2026 budget and to review the performance of the capital components of the 2024 and 2025 budgets, both of which are expected to be fully implemented by March 31, 2026.

Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, fielded the first round of questions. His submission that funding for the capital portions of the 2024 and 2025 budgets was still in progress, however, failed to satisfy members of the panel.

READ ALSO: FG to implement only 30% of 2025 capital budget by November 2026

Offering a different perspective, Chairman of the Nigeria Revenue Service (NRS), Mr Zacch Adedeji, argued that implementation gaps are often the result of inflated projections. He maintained that budget discipline requires revenue targets that are achievable, stressing that the true measure of efficiency lies in how much of a budget can realistically be executed.

He cautioned that planning expenditure on the basis of exaggerated income forecasts could trigger serious fiscal stress if expected funds do not materialise.

In response, the committee chairman reminded the revenue chief that the estimates under review were prepared by the executive arm, of which the revenue agency is a key part. He pointed to the significant disparity between projected oil earnings and actual receipts, questioning the rationale behind projecting 36.5 percent performance after recording only 18 percent in a previous cycle.

According to Adeola, lawmakers must decide whether to scale down the N58.472 trillion proposal to reflect fiscal realities or proceed with adjustments later. He noted that continued reliance on borrowing poses long-term risks and suggested that asset sales could be considered as a strategy to reduce the national debt stock and ease borrowing costs.

On her part, Minister of State for Finance, Dr Doris Uzoka-Anite, assured the panel that the outstanding 30 percent capital components of the 2024 and 2025 budgets would be completed before the March 31, 2026 deadline.

She explained that disbursement processes for the 2025 budget are being activated, while payments for pending 2024 capital projects are set to commence immediately. She also disclosed that the federal government’s financial management platform has resumed operations and that Ministries, Departments and Agencies have been directed to upload their cash plans to facilitate prompt releases.

READ ALSO: Thirty-eight days to 2026, Tinubu fiddles with 2024 budget, runs 2025 blind

Following the public exchanges, the committee went into a closed-door session with the economic team for nearly two hours.

President Bola Tinubu, in December 2025, presented the 2026 budget totalling N58.47 trillion to the National Assembly. President Tinubu’s revenue estimates stood at N34.33 trillion, leaving a fiscal deficit of N23.85 trillion.

Debt servicing was alloted N15.52 trillion, with crude oil price estimated at $64.85 per barrel. Daily oil production was pegged at 1.84 million barrels, with the exchange rate estimated N1,400 to the dollar.

Security topped the spending plan, with N5.41 trillion allocated to defence and national security, followed by infrastructure which received N3.56 trillion alllocation. A budget of N3.52 trillion allocation was allocated to education, with health getting N2.48 trillion.

Tagged ‘Budget of Consolidation, Renewed Resilience and Shared Prosperity,’ the budget estimated recurrent (non‑debt) expenditure at N15.25 trillion and capital expenditure at N26.08 trillion.

Capital expenditure is 45 percent of the entire budget, which is encouraging and significant. This means, ceteris paribus, there will be several projects that will be carried out in 2026. With the Nigerian government deferring 70 percent of the 2025 capital projects to 2026, analysts say this year will be a festival of projects across Nigeria, ranging from bridges to roads and rails.