Tinubu’s economic team to appear before Senate panel as lawmakers move to review 2024 Budget

The federal government economic team is expected to appear before the Senate Committee on Appropriations on Thursday to explain the rationale behind the proposed repeal and re-enactment of the 2024 Appropriation Act, which seeks to increase total expenditure from ₦28.7 trillion to ₦43.56 trillion.

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The team, led by the Minister of Finance, Wale Edun; the Minister of Budget and National Planning, Atiku Bagudu; and the Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, was summoned when the lawmakers were debating the president’s request to amend the 2024 budget, during the plenary on Wednesday.

Earlier during plenary, the Senate President, Godswill Akpabio, read a presidential communication requesting the repeal and re-enactment of the 2024 Appropriation Act to end the practice of running multiple budgets within a single fiscal year.

In the letter, Mr Tinubu explained that the 2024 budget, originally passed on 30 December of that year with a total expenditure of ₦28.7 trillion, is proposed to be increased to ₦43.56 trillion.

Under the revised proposal, ₦1 trillion is earmarked for statutory transfers, ₦8.2 trillion for debt servicing, ₦11.2 trillion for recurrent non-debt expenditure, while ₦22.2 trillion is allocated to capital expenditure and development fund contributions.

The president noted that the repeal and re-enactment, if approved, would run until 31 December and would end the practice of operating multiple budgets, while ensuring reasonable and unprecedentedly high capital performance rates for the 2024 and 2025 capital budgets.

Shortly after the letter was read, the Senate Leader, Opeyemi Bamidele, led the debate on the proposal.

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While presenting his arguement, Mr Bamidele explained that the essence of the repeal and re-enactment was to restructure and reform key components of the 2024 budget.

He added that the measure would restore budget clarity, strengthen fiscal discipline, and improve accountability across ministries, departments and agencies

He further said that the re-enactment would provide a clear and orderly appropriation framework, enabling the government to lawfully consolidate and regularise critical, time-sensitive, and unavoidable expenditures, particularly those arising from emergency situations.

Following the debate, the Deputy Senate President, Barau Jibrin, who presided over the session, put the motion to a voice vote, and it received majority support from senators.

The bill was subsequently referred to the Committee on Appropriations, with a directive to report back to the Senate within two days.

Nigeria’s budget overlapping

Nigeria’s continuous extension of the capital component of previous budgets has long been a source of concern.

Under the current administration, the Senate led by Mr Akpabio has approved multiple overlapping budgets for President Tinubu’s government.

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For instance, in 2024, Nigeria operated three budgets. They are the N21.8 trillion 2023 budget, the N2.17 trillion 2023 supplementary, and the N28.7 trillion 2024 appropriation.

Though the first two were passed by the ninth National Assembly during the administration of the late former President Muhammadu Buhari, President Tinubu extended their capital components first to June and later to December 2024, even as the 2024 budget was already in force.

The trend continued in 2025, when the capital component of the 2024 budget, which should have ended in December 2024, was extended twice—first to June 2025 and then to December 2025. As a result, the country is currently running two budgets simultaneously: the extended 2024 budget and the 2025 budget of about N54.2 trillion, which lawmakers raised by N7 billion from the president’s initial proposal.

Many have argued that Nigeria had never implemented three budgets in one year since the restoration of democracy in 1999.