The Federal Government admits major revenue shortfalls in implementing the 2024 and 2025 budgets, raising fresh concerns in the Senate over fiscal sustainability ahead of the 2026 budget cycle. The disclosure comes during an interactive session between the Senate Committee on Finance and members of the President’s economic management team on the 2026–2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP).
According to Mediaplusng.com, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, tells lawmakers that only about 30 percent of the 2025 budget is fully funded. He says the government plans to roll over nearly 70 percent of the spending framework into 2026 to ensure continuity and stability.
Edun explains that while the Federal Government projects about ₦40 trillion in revenue for the 2025 fiscal year, actual collections from programmed sources stand at roughly ₦10 trillion. This leaves a revenue gap of about ₦30 trillion, largely driven by weaker-than-expected oil revenue performance.
Mediaplusng.com reports that the minister clarifies recent public comments attributed to President Bola Tinubu on meeting 2025 revenue targets. He says the President refers specifically to gains in non-oil revenue, noting that oil revenue continues to fall below projections due to volatility in the global market.
The finance minister notes that revenue targets rise from about ₦20 trillion in 2024 to ₦40 trillion in 2025, but collections fail to keep pace. He says the government makes strong efforts in revenue mobilisation but now focuses on a more robust revenue optimisation strategy for 2026, with less reliance on borrowing and more emphasis on productive investment.
Edun also discloses that the 2024 budget is extended and largely implemented, especially on capital projects. He says funds are available to complete outstanding projects to avoid waste and ensure value for money.
The Accountant-General of the Federation confirms that arrangements are in place to clear remaining 2024 obligations. He tells senators that indigenous contractors receive up to 80 percent of outstanding payments, with two batches already paid and more scheduled.
However, several senators express strong dissatisfaction with what they describe as the practice of running multiple budgets within a single fiscal year. Senator Danjuma Goje warns that Nigeria is effectively implementing three budgets at the same time, calling the situation unacceptable and unsustainable.
Other lawmakers, including Senators Olalere Oyewumi, Victor Umeh, Aminu Abbas, and Ireti Kingibe, question why approved loans are not deployed to address revenue gaps. They also seek clarity on whether 2025 revenue shortfalls will be carried into 2026 and if new capital funding will be introduced.
In response, Edun says the rollover plan is designed to prevent repeated budget extensions and allow 2026 to function as a single, stable fiscal year. He adds that while non-oil revenue shows relative strength, oil revenue uncertainty requires flexibility in government spending.
Chairman of the Senate Committee on Finance, Senator Sani Musa, announces the immediate formation of a three-man ad hoc committee. He says the committee will work with the Ministry of Finance and the Office of the Accountant-General to fast-track payments to local contractors before the full closure of the 2024 budget.
The committee also directs the Federal Inland Revenue Service (FIRS) to raise its 2026 revenue projection from ₦31 trillion to ₦35 trillion. FIRS Chairman, Zacch Adedeji, tells lawmakers that the agency generates ₦20.2 trillion in 2024 and ₦25.2 trillion in 2025, but notes that multiple budget implementations weaken the overall impact of revenue growth.
