Politics
Senate Calls For Restructuring Of Budgeting Model
The Nigerian Senate has called for a complete restructuring of the nation’s budgeting model.
The members of the Senate Committee on Solid Minerals, Mines, Steel Development and Metallurgy, who raised concerns on the annual envelope budgeting system of the federal government also condemned the lack of political will to revamp the Ajaokuta Iron and Steel project which could generate thousands of jobs for Nigerians.
The proposed N23.4 billion 2022 budget estimates enveloped for the ministry of mines and steel development was presented by the Minister of State, Dr Uchechukwu Sampson Ogah, for consideration by the senate.
Dr Ogah who represented the Minister, Mr Olamilekan Adegbite, said that: ”Out of the N23.4 billion budget profile for the ministry in 2022, N10 billion is for personnel cost, N1.47 billion for overhead cost and N11 billion for capital projects.”
Members of the committee who expressed dissatisfaction with the minister’s presentation decried the meagre budgetary allocation for the sector which, according to them, should rank second after the oil and gas sector.
The Chairman of the Committee, Senator Umaru Tanko Al-Makura, said; ”The yearly ritual called budget, is garbage in, garbage out, which will not take the country to anywhere as far as required diversification is concerned.”
“The type of budgeting process being carried out in this country over the years is stereotypic one. It is wrong for a budget to be conceptualised in the ministry, enveloped and forwarded to the national assembly for approval,” he added.
Senator Smart Adeyemi, while describing the present budgeting model as undemocratic, said the economic team of President Muhammadu Buhari was clearly out of tune with the realities on ground as regards the needs of Nigerians.
“How on earth would a minister propose N82 billion for procurement of mosquito nets and a sector as important as the solid minerals be given N10 or N11 billion?
“Ajaokuta Iron and Steel Complex that can give jobs to about 50,000 Nigerians is lying fallow in a country with army of unemployed youths who can stage revolution at any time. Nigeria is bleeding from this envelope form of budgeting riddled with repetition of line items and allocations on yearly basis.
“Government may be building infrastructure, but building infrastructure is not as good as creating wealth through diversification of the economy. The best way of doing this is to remove whatever bottleneck hindering continuation of work on Ajaokuta Steel complex and get it completed,” he explained.
The minister in his response however said that the envelope budgeting was not the creation of the ministry as it affects other government agencies.
“My appeal to you distinguished Senators on the current model of budgeting is for the National Assembly to seek the attention of the President.
“Operating with envelope as far as yearly budget is concerned, doesn’t make one think out of the box. It makes one looks stupid. We have the passion to drive the development of the country and transform into reality, the vision of Mr President like other patriotic Nigerians in one public office or the other,” he stressed.
He added that even with the envelope budgeting and lean resources, ”The ministry has changed the narrative of low internally generated revenue to very appreciable figures now.”
The Senate yesterday received the 2026-2028 Medium Term Expenditure Framework and Fiscal Strategy Paper from President Bola Tinubu, marking the formal launch of the 2026 federal budget cycle.
In a letter addressed to the upper chamber, Tinubu said the submission complies with statutory requirements and sets out the fiscal parameters that will guide the preparation of the 2026 Appropriation Bill.
He explained that the MTEF/FSP outlines the macroeconomic assumptions, revenue projections, and spending priorities that will shape Nigeria’s fiscal direction over the next three years.
The letter was read during plenary by the Deputy President of the Senate, Senator Barau Jibrin (APC, Kano North), who urged lawmakers to expedite consideration of the document.
“It is with pleasure that I forward the 2026 to 2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper for the kind consideration and approval of the Senate.
“The 2026 to 2028 MTEF and FSP were approved during the Federal Executive Council meeting of December 3, 2025, and the 2026 budget of the Federal Government will be prepared based on the parameters and fiscal assumptions therein,” the President stated.
Last week, the Federal Executive Council approved the fiscal projections, pegging the oil benchmark price at $64.85 per barrel and adopting a budget exchange rate of ?1,512/$1 for 2026—figures expected to significantly shape revenue forecasts and expenditure planning.
After reading the President’s letter, Jibrin referred the document to the Senate Committee on Finance, chaired by Senator Sani Musa (APC, Niger East), with a directive to submit its report by Wednesday, December 17.
The Senate adjourned shortly after to allow committees to commence scrutiny of the fiscal framework and continue the ongoing screening of ambassadorial nominees.
Tinubu’s communication to the Senate came less than 24 hours after he transmitted the same MTEF/FSP documents to the leadership of the House of Representatives.
The letter was read on the House floor by the Deputy Speaker, House of Representatives, Benjamin Kalu, who also urged timely legislative action as required by law.
The MTEF and FSP are statutory instruments mandated by the Fiscal Responsibility Act and serve as the blueprint for Nigeria’s annual budgets.
They outline the government’s fiscal stance, macroeconomic assumptions, revenue frameworks, projected deficits, and sectoral priorities over a three-year period.
The Tide reports that approval by the National Assembly is a prerequisite for the executive to present the Appropriation Bill for the next fiscal year.
In a statement on Saturday, the former Senate Leader stated that the allocation of nominees across states and geopolitical zones falls short of the constitutional requirement for fair representation in the composition of the Federal Government.
The ex-Senate Whip warned that allowing the list to pass could deepen ethnic suspicion at a time when the administration should be consolidating national unity.
He highlighted disparities in the spread of nominees, noting that while some states have three or four slots, others have none. He also cited the inclusion of Senator Adamu Garba Talba from Yobe, who reportedly died in July.
“The entire North-East states have seven nominees in the list. Further checks revealed that the South-West geo-political zone has 15 nominees, while North-West and South-East have 13 and 9, respectively.
“North-Central region has 10 nominees in the list of career and non-career ambassadorial nominee while South-South parades 12 nominees,” Senator Ndume said.
According to him, such imbalances could heighten tensions and undermine Section 14(3) of the Constitution.
“My sincere appeal to President Tinubu is to withdraw this list. At this critical juncture in his administration, he should avoid missteps that could undermine national unity and foster ethnic distrust.
“I know him to be a cosmopolitan leader who is at home with every segment and stakeholder in the country. He should withdraw that list and present a fresh set of nominees that will align with the spirit of the Constitution on the Federal Character Principle,” Senator Ndume added.
He accused the legislators of undermining the sanctity of the legislature and acting as instruments of destabilization.
“The members of the Rivers State House of Assembly have, by their actions since they assumed office, shown that they are political puppets and a clog in the wheels of democratic progress,” Comrade Ememobong stated, adding that “They will go down in history as enemies of democracy and those who made mockery of the legislature.”
“So the easiest way to describe their action is a defection from APC to APC,” he said.
Comrade Ememobong announced that the party would deploy constitutional provisions to reclaim its mandate from those who have “ignobly and surreptitiously” abandoned the platform on which they were elected.
“Consequently, the PDP will take legal steps to activate the provision of the Constitution of the Federal Republic of Nigeria (1999 as amended) to recover the mandate gained under the banner of our party which these people have now switched to another platform,” he said.
He urged party members in Rivers State to remain calm and steadfast.
“We urge all party members in Rivers State to remain faithful and resolute, as efforts are underway to rebuild the party along the path of inclusiveness, fairness and equity,” Comrade Ememobong assured.
