The Senate on Thursday confronted the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, over the Federal Government’s management of funds saved and spent since the removal of fuel subsidy in June 2023.
Edun, who appeared before the Senate to defend the 2025 budget, faced intense scrutiny, particularly on debt servicing and the implementation of the 2024 budget. In response to pointed questions from lawmakers, the minister requested a closed-door session to provide detailed answers, a move that highlighted his apparent lack of preparedness.
Proceeds From Subsidy Removal
The session grew heated when Senator Abdul Ningi (PDP, Bauchi Central) demanded specifics on the proceeds from the fuel subsidy removal and their allocation in the 2024 fiscal year.
Ningi questioned:
“What is the budget performance achieved so far for the 2024 fiscal year, particularly in terms of capital expenditure?
How much has been saved from the removal of fuel subsidy, and how much has been expended?
How much has been spent on debt servicing in 2024, and what are the projections for 2025?
Can the minister assure that the extension of the capital component of the 2024 budget to June 30, 2025, will improve its implementation?”
Edun, appearing flustered, responded:
“Are we in a closed-door session? If not, I would humbly request one to provide detailed explanations.”
The Committee Chairman, Senator Solomon Olamilekan (APC, Ogun West), then directed journalists to leave the session for a private briefing.
Budget Defence Challenges
The scrutiny extended to other officials, including the Minister of Budget and Economic Planning, Atiku Bagudu, and the Director-General of the National Orientation Agency (NOA), Lanre Issa-Onilu. Both faced tough questions on their respective 2025 budget proposals.
The Senate Committee on Information and National Orientation, chaired by Senator Kenneth Eze (APC, Ebonyi Central), criticized the NOA’s National Identity Project, calling it unfamiliar to most Nigerians. However, Issa-Onilu defended the initiative, arguing it was essential for promoting national values and unity.
Similarly, the Managing Director of the News Agency of Nigeria (NAN), Mr. Ali Mohammed, was directed to reconcile inconsistencies in the 2024 budget implementation figures before seeking approval for the 2025 budget.
Senate’s Position
The Senate committees emphasized the need for transparency and accountability in budgetary matters. Lawmakers stressed that the Federal Government must ensure that funds saved from critical policy reforms, such as subsidy removal, are efficiently utilized for national development.
The Senate’s demand for comprehensive responses underscores its commitment to scrutinizing the executive’s fiscal policies and ensuring alignment with national priorities.