The Senate has warned that any agency benefiting from service-wide votes without proper accountability will no longer be tolerated, declaring that the 2026 budget will mark a decisive break from past spending practices.
Chairman of the Senate Committee on Appropriations, Senator Adeola Olamilekan, gave the assurance during a one-day public hearing on the 2026 Appropriation Bill in Abuja.
He stated that every expenditure item would face rigorous scrutiny to ensure transparency, efficiency, and fiscal discipline across government.
Olamilekan also declared that the National Assembly would no longer extend federal budget implementation beyond December 31, insisting that such delays undermine fiscal planning and accountability.
He highlighted the electricity sector as a major drain on public finances, stressing the urgent need for comprehensive reforms, including unbundling of the power sector.
Electricity subsidies, which run into several trillions of naira annually, must be addressed to free up revenue for national development, he said.
The lawmaker expressed concern over inadequate government revenue to fund the proposed ₦2026 budget, which carries a deficit of ₦25.1 trillion, raising serious questions about fiscal sustainability.
Responding to comments by economic consultant Mr. Adetilewa Adebayo—who warned that Nigeria’s estimated $3 trillion economic potential is being eroded by weak leadership and unsustainable borrowing—Olamilekan noted that continued borrowing had become unavoidable due to heavy debt-servicing obligations inherited from previous administrations, including the military era.
He explained that high debt-to-revenue ratios were not unique to Nigeria, as government revenues often come in irregular inflows rather than bulk sums.
“If we project ₦5 trillion in a month, we may only realise ₦1 trillion, but the government must go on,” he stated.
Olamilekan further said Nigeria must continue servicing its debts to avoid downgrades by international institutions such as the World Bank and IMF, warning that failure to meet obligations would damage the country’s credibility.
“Our debt service is a problem; we are servicing debt from previous administrations, even from the military era. We have no choice but continue to pay.
“An attempt by us to fail to meet any financial obligations, our rating will drop both in the World Bank and the IMF, and that’s not good for the country. We must try and free up so much of our revenue to address the deficit challenges confronting us,” he added.
To bridge the deficit gap, he disclosed plans to:
– Approach international financial markets
– Invite the Group Managing Director of the Nigerian National Petroleum Company Limited (NNPCL) to clarify expected revenue contributions
– Consider privatisation of certain federal government assets to raise funds
The Senate’s position signals a shift toward greater fiscal discipline, transparency in service-wide votes, and stricter adherence to budget timelines ahead of the 2026 fiscal year.
