Ordinary Nigerians not feeling economic gains — Senate panel

The Senate Committee on Finance said ordinary Nigerians are yet to feel the impact of the economy, based on feedback from heads of ministries, departments, and agencies (MDAs) during budget defence sessions. The committee urged the federal government to revert to the previous decentralised payment system for contractors, citing a mounting debt crisis linked to […]

The Senate Committee on Finance said ordinary Nigerians are yet to feel the impact of the economy, based on feedback from heads of ministries, departments, and agencies (MDAs) during budget defence sessions.

The committee urged the federal government to revert to the previous decentralised payment system for contractors, citing a mounting debt crisis linked to the current centralised model.

It noted that many contractors remain unpaid for projects completed in 2024, with obligations for 2025 already falling behind.

The committee chairman, Senator Sani Musa (Niger East), criticised the “envelope” system, describing it as ineffective and promoting routine expenditure expansion over strategic prioritisation.

He urged adoption of a priority-based model to ensure resources are focused on growth-enhancing projects.

Senator Musa urged the economic team to collaborate with the National Assembly to reform operational systems, including replacing the Envelope system and ending centralised payment for contractors. Committee members echoed his call for improved planning, prompt contractor payments, and accountability in budget implementation.

Meanwhile, the committee resolved to write to President Bola Ahmed Tinubu requesting the dismissal of the Registrar-General of the Corporate Affairs Commission, Hussaini Ishaq Magaji, SAN, for repeatedly failing to appear before the committee.

The federal government’s economic team, led by Finance Minister Wale Edun, alongside Budget Minister Senator Atiku Bagudu, the Accountant General, and the FIRS Chairman, defended the 2026 budget. Edun explained that Nigeria’s current N152 trillion debt largely stems from inherited obligations and exchange rate adjustments, with only about N20 trillion representing new borrowing since 2023.

He assured the committee that the proposed N58.472 trillion 2026 budget prioritises growth-enhancing projects.