The Senate convened on Monday and expressed robust support for the federal government's continued borrowing practices. They asserted that deficit financing is essential to realize the proposed N58.47 trillion budget for 2026, which presents a shortfall of approximately N25.91 trillion due to ongoing revenue limitations and significant development demands.
Additionally, the Minister of Industry, Trade and Investment, Mrs. Jumoke Oduwole, also addressed the assembly on the same day, expressing concern over a proposed capital budget of N2.72 billion for her ministry in 2026, labeling it severely insufficient for fostering Nigeria's industrial growth, trading expansion, and attracting investments.
During a public hearing regarding the 2026 budget at the National Assembly, Senator Solomon Adeola, who chairs the Senate Committee on Appropriations, stated that Nigeria cannot fulfill its infrastructure, security, and social responsibilities without resorting to borrowing. He emphasized that while borrowing is inevitable, wasteful and consumption-driven deficits must not continue.
Adeola highlighted that the core issue transcends borrowing itself; it is about how deficits are financed and how the borrowed funds are utilized.
"Nigeria cannot avoid continued borrowing owing to unpredictable revenue streams and pressing developmental needs," he remarked.
"What is crucial is how we manage borrowing, how we finance the deficits, and the purpose of the borrowed funds," he added.
He noted that projected revenue for the year 2026 is anticipated at N33.19 trillion, while total expenditure is expected to reach N58.47 trillion, which results in a deficit of N25.27 trillion. Further, he indicated that debt servicing is projected to absorb about N15.90 trillion.
According to Adeola, these figures accentuate the pressing need for revenue enhancement, asset optimization, and more disciplined fiscal policies.
He pointed out that the federal government is intentionally steering clear of excessive domestic borrowing that might hinder private sector lending. Instead, it aims to rely on a combination of external financing, asset divestment, privatization, Public-Private Partnerships (PPPs), and infrastructure concessioning.
Additionally, Adeola argued for the complete removal of the electricity subsidy to allocate limited resources more effectively towards development, cautioning that only partial reforms in the electricity sector would further strain public finances.
"We must finalize the unbundling process and fully eliminate the subsidy in the electricity sector. Although states can now generate power, the subsidy remains a significant financial strain that must be addressed comprehensively," he stated.
He recalled that substantial funds were previously exhausted on fuel subsidies, primarily funded through loans, describing President Bola Tinubu's removal of the fuel subsidy as a pivotal moment that enables ongoing fiscal reforms.
In a significant declaration of legislative intent, Adeola stated that the National Assembly would reject any future requests for budget implementation period extensions, attributing repeated rollovers to subpar budget performance.
"The National Assembly shall no longer approve budget timeline extensions. We need to enforce discipline in our budgeting procedures, ensuring timely execution and improved coordination between policy formulation and implementation," he said.
Senate President Godswill Akpabio, represented by Deputy Senate President Senator Barau Jibrin, positioned the 2026 budget proposal as a measure of moral and historical significance, urging lawmakers and the executive to ensure that borrowing results in real benefits for the populace.
"A budget is a testament to our values and priorities. Merely allocating funds is insufficient; we must transform budgets into discernible outcomes for Nigerians," Akpabio asserted.
Minister of State for Finance, Dr. Doris Nkiruka Uzoka-Anite, stated that the proposed budget for 2026 is aligned with governmental priorities, aimed at furthering ongoing reforms and ensuring that limited national resources are deployed with utmost efficiency.
Recognizing public dissatisfaction with rising prices, she described Nigeria's economic recovery as precarious yet cautiously optimistic.
Fiscal policy expert, Dr. Olatilewa Adebajo, cautioned that Nigeria's growing deficit could reach unsustainable levels unless swift measures are enacted to bolster revenue generation and adhere to fiscal regulations.
He urged for a comprehensive reevaluation and stricter enforcement of the Fiscal Responsibility Act (FRA), characterizing it as a potent yet underused instrument.
"There is a need to revisit and rigorously enforce the Fiscal Responsibility Act. Revenue leakages are significant, particularly in sectors like solid minerals, where Nigeria profits minimally despite considerable extraction activities," Adebajo claimed, alleging that foreign interests are exploiting the sector with scant returns to the nation.
Conversely, the Accountant General of the Federation, Shamseldeen Olujimi, called for a fundamental transformation from allocation-based budgeting to outcome-focused execution.
"Historically, we have excelled in budget formulation but faltered in translating those budgets into real-world impacts. The critical concern is not the amounts allocated but the measurable improvements in Nigerian lives derived from these allocations," he remarked.
Olujimi emphasized that success should be gauged by operational schools, functional health facilities, reliable electricity, and job creation—not merely the budget figures or expeditious passage through the legislature.
Adeola assured that all funds, including general service votes and special interventions, will remain under the National Assembly's scrutiny, cautioning Ministries, Departments, and Agencies (MDAs) that failure to substantiate their budget requests could lead to funding reallocations.
Returning to the Minister of Industry, Trade and Investment, Mrs. Jumoke Oduwole expressed her discontent regarding the proposed N2.72 billion budget for her ministry, warning that this provision falls far short of what is needed.
While defending her ministry's 2026 budget proposal, Oduwole urged the National Assembly to consider increasing the capital budget to meet necessary programme demands.
She articulated that without adequate funding, the ministry's capacity to assist in implementing Tinubu’s Renewed Hope Agenda and attaining a trillion- dollar economy would be severely compromised.
Oduwole contended that the Ministry of Industry, Trade and Investment plays a crucial role in diversifying the economy away from oil dependence, enhancing non-oil exports, fostering domestic production, and inviting both local and international investments.
"The proposed capital funding of N2.72 billion may hinder our ability to fulfill the demands of our initiatives and capital projects," she informed the legislators.
"We respectfully request the committee's backing for an increase in our capital allocation to enable us to efficiently execute our mandate," Oduwole said.
Senator Umar Sadiq, Chair of the Senate Committee on Trade and Investment, acknowledged the ministry's vital role in the administration's economic agenda.
He stressed that realizing a $1 trillion economy would not be feasible without robust performance from the sectors of industry, trade, and investment.
Sadiq stated, "We are aware of the President's renewal agenda, aimed primarily at establishing a trillion-dollar economy. The Ministry of Industry, Trade and Investment is crucial for achieving this goal, extending beyond the oil industry."
Senator Francis Fadahunsi, Chair of the Senate Committee on Industry, urged the ministry to effectively illustrate how its agencies impact Nigerians' lives, particularly in job creation, export development, and industrial growth.
In her presentation, Oduwole detailed the ministry's accomplishments over the last two years, arguing that these results warranted increased capital investment.
She revealed that Nigeria had attracted around $21 billion in capital inflows during the first ten months of 2025, compared to $12 billion in 2024 and under $4 billion in 2023.
She attributed this upturn to intentional interventions by the ministry, which include developing over $5 billion in viable investment proposals, establishing sector-focused deal-making encounters, and hosting Nigeria's inaugural Domestic Investor Summit.
The minister also mentioned resolving more than 50 significant investment challenges and engaging over 100 bilateral investment discussions with nations, including the United Kingdom, United States, United Arab Emirates, Brazil, and Japan.
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