Nigerian senators have expressed growing dissatisfaction with the execution of the 2024 budget, highlighting concerns about the management of funds saved from the removal of the fuel subsidy, transparency in expenditures, and delays in budget implementation.
Scrutiny of Subsidy Savings and Budget Performance
During a session with the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the Minister of Budget and Planning, Atiku Abubakar Bagudu, the Senate Committee on Appropriations sought clarity on key aspects of the budget.
Senator Abdul Ningi raised concerns about the lack of specific data on:
- Utilisation of funds saved from the subsidy removal.
- Debt servicing projections for 2024 and beyond.
- Performance metrics for both capital and recurrent expenditures.
Ningi remarked:
“We need precise figures or percentages on budget performance, especially regarding capital expenditure and how subsidy savings have been deployed. These details are essential for our oversight duties and to maintain public trust.”
He also questioned the rationale for extending the 2024 budget implementation to June 2025, asking for assurances on the potential economic benefits of this decision.
Calls for Transparency in Revenue Collection
Senator Adetokunbo Abiru, representing Lagos East, commended improved revenue collection in Q3 of 2024 but criticised the lack of transparency in the revenues generated by Government-Owned Enterprises (GOEs). He specifically demanded detailed remittance data from Nigerian Liquefied Natural Gas (NLNG), urging better accountability.
Centralized Payment System Under Scrutiny
Senator Tahir Monguno, the Senate Chief Whip, attributed delays in capital budget implementation to the centralised payment system introduced by the current administration.
He stated:
“The shift from a decentralised approach to a centralised payment system managed by the Office of the Accountant General has caused bureaucratic bottlenecks, slowing down budget execution.”
This criticism highlights the need for a streamlined payment system to avoid inefficiencies that could hinder capital project execution.
Concerns About Budget Submission Delays
Minority Leader Senator Abba Moro expressed frustration over delays in the executive arm’s budget submission process, warning that such delays threaten adherence to the January-December budget cycle.
He cautioned:
“Timely submission and implementation of the budget are critical for maintaining fiscal discipline and ensuring the smooth delivery of government programs.”
Executive Session Requested
Amid intense scrutiny, Wale Edun requested an executive session, resulting in journalists being excused from the room. This move underscores the sensitive nature of discussions regarding the 2024 budget’s implementation and potential adjustments.
Key Takeaways
The session underscores a growing rift between the legislative and executive arms over the management of the 2024 budget. Senators have called for greater transparency, efficient payment systems, and timely execution of the capital budget to meet Nigeria’s developmental goals.
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