Senate Threatens to Cut N58.47tn 2026 Budget Proposal

The Nigerian Senate, led by Solomon Adeola, has expressed intentions to slash the proposed N58.47 trillion budget for 2026, deeming the revenue assumptions unrealistic due to persistent poor oil performance. During an interaction session with the Federal Government's economic team, Adeola questioned the credibility of the budget's projections, highlighting a significant underperformance in oil revenue, which was only at 18% of the fiscal year target.

He emphasized the need for realistic assumptions to avoid worsening Nigeria's fiscal pressures, as the country's debt stock hovers around N152 trillion. Wale Edun, the Minister of Finance, defended the oil production benchmark of 1.84 million barrels per day, asserting that it was designed to drive performance.

Zacch Adedeji from the Nigeria Revenue Service echoed concerns about the unrealistic revenue assumptions undermining budget performance. The discussions reflect a critical examination of Nigeria's economic strategies and the need for a more sustainable fiscal approach.