•Finance minister, Wale Edun
Senators today continued to raise concerns about the performance of the 2024 Budget.
At a session with Wale Edun and Atiku Abubakar Bagudu, Minister of Finance and Budget Planning, respectively, lawmakers on the Senate Committee on Appropriations demanded explanations on proceeds from the removal of the fuel subsidy and transparency in the performance of Government-Owned Enterprises, reports Nigerian Tribune.
Findings revealed that at the Joint Committees on Appropriations of both Chambers of the National Assembly on the defence of the 2024 Budget, the lawmakers had yesterday raised observations on the huge discrepancies in the size of the Recurrent Expenditure relative to Capital Expenditure.
At the meeting with the ministers today in continuation of the 2024 Budget defence, the Chairman of the Committee, Senator Solomon Olamilekan Adeola, asked the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, to speak to issues that have agitated the minds of lawmakers: capital expenditure performance and the utilisation of funds saved from the removal of the fuel subsidy.
Not impressed with his explanation, Senator Abdul Ningi pointedly asked the Finance Minister to provide the figures on proceeds from the removal of the fuel subsidy.
The Senator representing Bauchi Central also requested the actual sum spent on debt servicing in the 2024 Budget.
He said, “I have listened to the submissions of the ministers, and I must say my concerns remain unaddressed. As an Appropriation Committee, we are tasked with overseeing budgetary matters, and many of us here are chairpersons of committees that will carry this presentation back to our respective teams.
“In your opening remarks, Mr Chairman, you referenced budget performance, but we are yet to hear specific figures or percentages regarding capital expenditure and recurrent expenditure. What is the current budget performance? These details are critical for our deliberations and for informing the larger public.
“On the removal of fuel subsidies, we have not been told how much has been saved, how these savings have been utilised, or what projections are in place. Similarly, debt servicing remains a grey area. How much debt did we service in 2024, what are the projections for 2025, and how does this impact the economy?
“Additionally, the 2024 budget’s performance was extended to June 2025. Can the Minister of Finance assure us that this extension will yield tangible benefits for the economy? These questions must be addressed with clear, detailed figures to guide our committees and the public on budget performance and expectations.”
Senator representing Lagos East, Adetokunbo Abiru, who commended the improvements in revenue collection in the third quarter of 2024, however, alleged that the independent revenues of Government-Owned Enterprises are shrouded in secrecy. Senator Abiru further requested the total sum of remittances from the Nigerian Liquefied Natural Gas (NLNG).
An overwhelmed Wale Edun requested an executive session with the Senators, prompting the lawmakers to ask the journalists to leave the Senate Committee room.
Before the session dissolved into a closed-door session, Senator representing Borno North and Senate Chief Whip, Tahir Monguno, attributed the delay in budget execution to what he called excessive concentration of power in the Office of the Accountant General.
He said: “There is a school of thought suggesting that one of the major obstacles to the successful implementation of the capital component of the budget is the introduction of the ‘bottom-top approach’ by the current administration. This policy has centralised payment and processing in the Office of the Accountant General, replacing the previous decentralised system where ministries, departments, and agencies handled these tasks independently.
“This centralisation has reportedly introduced significant bureaucratic delays and bottlenecks, hindering the smooth execution of the budget. Furthermore, it is alleged to have created opportunities for corruption due to the excessive concentration of power in the Office of the Accountant General.
“I believe it is crucial to re-evaluate this ‘bottom-top approach’ policy with the aim of facilitating more efficient implementation of the capital component of the budget. Doing so will ensure that the dividends of democracy are delivered directly to the vast majority of our people.”
Minority Leader, Senator Abba Moro, raised concern over the delay in budget submission by the Executive arm, which he noted constitutes a threat to the January-December Budget cycle.
