ABBA -EKU ONYEKA
ABUJA
The Senate Thursday through its Committee on Finance , told the Federal Government to revert back to old payment system for contractors as against the current centralized system which made it to be indebted to many contractors even on projects executed in 2024 not talk of those of 2025 .
The committee also sought for replacement of the Envelope budgeting system with priority or performance based model just as it called for sack of the Registrar General of the Corporate Affairs Commission ( CAC) , Hussaini Ishaq Magaji, SAN.for persistent refusal to appear before the committee .
Resolutions to these effects were taken by the committee during interactive session it had with economic management team of the Federal Government led by the Minister of Finance and Coordinating Minister of Economy , Mr Wale Edun which also had in attendance , the Minister of Budget and National Planning , Senator Atiku Bagudu , the Accountant General of the Federation , Dr Shamseldeen Babatunde Ogunjimi and the Chairman, Nigeria Revenue Service ( NRC ) Zacch Adedeji .
Putting the economic team on their toes in his opening remarks at the critical interactive session , the Chairman of the Committee , Senator Sani Musa ( Niger East ) , told them that realities on ground based on feedbacks gotten from submissions made by heads of the various MDAs during budget defence sessions , show that the impact of the economy is not felt by ordinary Nigerians .
According to him , the economic team need to collaborate with the National Assembly for way out , which for us here , requires replacement of current operational systems .
” Specifically, based on submissions made by heads of various agencies during the ongoing budget defence sessions , the Envelope system of budgeting has failed and needs to be replaced by priority based model .
“The incremental allocation model has outlived its usefulness. It promotes routine expenditure expansion rather than strategic prioritisation.
” Similarly , the centralized system of payment which has led to many contractors remaining unpaid for projects already executed , should be replaced with the old system which allows the various MDAs , pay contractors they gave job to ” , he said .
He further emphasised the need to restore strict adherence to the annual budget cycle, insisting that budgets must be time-bound and measurable.
“If, by December, we cannot assess ourselves realistically, then the system is failing. We must return to a disciplined budget cycle where one fiscal year ends before another begins”, he said .
In their separate remarks , all the members of the committee toed the line of the Chairman by admonishing the economic team to sit up for better budget planning and implementation as well as prompt payments of contractors .
In their responses, the economic team , assured the committee and by extension, Nigerians that the outlook for 2026 is very positive for the N58.472trillion proposed budget in terms of implementation .
He explained to the committee that N152trillion budget profile the country current has , was not accumulated by borrowings alone .
He said : “Currently, government debt in Naira terms, is 152 trillion Naira. About 30 trillion Naira came from Ways and Means inherited by this government and N9trillion incurred from exchange rate adjustment.
“So virtually half of that debt is made up of adjustments. It is not additional borrowing.
Additional borrowing since 2023 is in the 20 trillion range.
“Going forward is what matters most. Prioritization will start with the MDAs, bringing forward growth-enhancing projects. Then the Economic Management Team will review those projects, and finally, Mr. President will decide financing based on priorities, particularly for capital projects.”
Earlier at the commencement of the critical engagement session with the economic team , the committee resolved to write President Bola Tinubu to sack the Registrar – General of CAC , for his persistently refusing to appear before it .
