Jane Salihu
The Senate has called for a review of key public finance procedures, urging the Federal Government to consider reforms that would enhance budget implementation and ease payment processes for contractors across Ministries, Departments and Agencies (MDAs).
The position was taken on Thursday during an interactive session between the Senate Committee on Finance and members of the Federal Government’s Economic Management Team (EMT), led by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun. Also in attendance were the Minister of Budget and Economic Planning, Atiku Bagudu, the Accountant-General of the Federation, Dr. Shamseldeen Babatunde Ogunjimi, and the Chairman of the Nigeria Revenue Service, Zacch Adedeji.
Chairman of the Senate Committee on Finance, Senator Sani Musa (Niger East), said feedback from MDAs during the ongoing budget defence sessions indicated the need to reassess certain operational frameworks to improve efficiency and ensure that the impact of government spending is more visible to citizens.
According to him, the current envelope budgeting approach should give way to a more priority-driven or performance-based model that focuses on strategic national goals.
He noted that incremental allocations have, over time, encouraged routine expenditure expansion rather than targeted development outcomes.
The committee also suggested a review of the existing centralized payment system, observing that delays in settling verified obligations to contractors have affected project delivery timelines.
Lawmakers proposed a return to a more flexible arrangement that allows MDAs to process payments for duly executed projects, subject to established accountability safeguards.
Senator Musa further emphasised the importance of restoring strict adherence to the annual budget cycle to promote fiscal discipline.
He stressed that measurable, time-bound budgets would enable more transparent assessment of performance at the close of each fiscal year.
In their contributions, members of the committee encouraged closer collaboration between the executive and legislature to strengthen planning, revenue mobilisation and implementation processes, particularly as deliberations on the proposed 2026 budget gather momentum.
Responding on behalf of the EMT, Edun expressed appreciation for the constructive engagement and assured lawmakers that the outlook for the proposed ₦58.472 trillion 2026 budget remains positive.
He explained that the current public debt stock of about ₦152 trillion includes inherited liabilities such as Ways and Means advances and exchange rate adjustments, noting that new borrowings since 2023 account for a smaller portion.
The minister added that going forward, greater emphasis would be placed on prioritising growth-enhancing and capital projects. He outlined a process in which MDAs would first identify strategic projects, followed by EMT review, with final financing decisions aligned to national priorities as determined by President Bola Tinubu.
The session also touched on the need for improved institutional responsiveness, including legislative oversight of agencies such as the Corporate Affairs Commission, as part of efforts to strengthen governance and service delivery.
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