Senate Finance Committee Calls for Practical and Impactful Budget Proposals
The Senate Committee on Finance has urged Ministries, Departments, and Agencies (MDAs) to submit realistic and result-oriented budget proposals when defending their 2025 estimates.
Chairman of the committee, Senator Sani Musa (APC, Niger), made this call on Monday in Abuja during a budget defense session with the Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun. Also in attendance were the Accountant General of the Federation, Oluwatoyin Madein, and the Chairman of the Fiscal Responsibility Commission, Victor Muruako.
Senator Musa emphasized the need for budget proposals that are transparent, accountable, and aligned with national priorities, ensuring that public funds translate into tangible benefits for citizens.
“The impact of this process will be felt across all sectors. Therefore, this budget must reflect prudence, accountability, and a strong alignment with the needs of the people,” he stated.
Acknowledging the financial constraints faced by MDAs, Musa reiterated the importance of responsible budgeting.
“We recognize the challenges in balancing available resources with the demands of governance. However, as stewards of public funds, it is our duty to ensure that every allocation contributes meaningfully to our collective goals,” he added.
He urged MDAs to present data-driven justifications for their budgetary requests, emphasizing that the review process is not adversarial but a collaborative effort aimed at improving Nigeria’s economic well-being.
Finance Minister Optimistic About Economic Growth
Speaking at the session, Minister Wale Edun expressed optimism about the country’s economic trajectory, stating that various sectors are experiencing positive growth.
“The economy is moving in the right direction, with multiple sectors showing progress. Our goal is to enhance job-creating sectors and ensure efficient utilization of funds,” Edun said.
The minister defended the ministry’s budget request, highlighting the need for additional capital expenditure.
“Beyond the N13 billion allocated for the ministry in the 2025 budget, an additional N25 billion is required for large-scale capital projects,” he explained.
On inflation control, Edun cited the Central Bank of Nigeria’s (CBN) projection of a 15% inflation rate by the end of 2025, describing it as achievable with concerted efforts from all stakeholders.
“While monetary policies play a role in curbing inflation, fiscal measures must also contribute by boosting supply rather than merely restricting demand. One key area of focus is increasing food production. We have already mobilized 250,000 farmers for dry-season farming, which is expected to yield 750,000 metric tons of assorted grains,” he noted.
Revenue Generation and Budgeting Reforms
Regarding Nigeria’s revenue drive, Edun emphasized the importance of reforms in the oil sector, particularly through the Nigerian National Petroleum Company Limited (NNPCL).
“A major priority is ramping up revenue, and the NNPCL is the number one source for both revenue and foreign exchange. With recent improvements, the sector is becoming more competitive, attracting international investors and boosting economic prospects,” he stated.
On the existing “envelope budgeting” system, which caps funding for MDAs based on available resources, Edun acknowledged the need for a more pragmatic approach to ensure efficiency in capital projects.
The budget defense session highlighted the government’s commitment to fiscal discipline, economic sustainability, and infrastructural development as Nigeria prepares for the 2025 fiscal year.
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