By Haruna Salami
The Senate Committee on Finance on Monday questioned the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, over Nigeria’s rising public debt, the slow pace of the 2026 budget implementation, and remittances into the Consolidated Revenue Fund (CRF).
The issues were raised during an investigative hearing on the remittance of Internally Generated Revenue (IGR) and operating surplus into the CRF by Ministries, Departments and Agencies (MDAs) for the 2023 to 2025 fiscal years, as well as an interactive session between the government’s economic team and the Senate Committee on Finance.
Chairman of the committee, Senator Sani Musa (APC, Niger East), said the engagement formed part of the Senate’s constitutional oversight responsibility aimed at promoting transparency, accountability and prudent fiscal management.
He acknowledged that recent economic reforms had recorded encouraging outcomes but stressed that greater efforts were needed to ensure the benefits translated into lower inflation, increased employment opportunities and improved living standards for Nigerians.
According to him, the session focused on reviewing revenue performance, fiscal reforms, budget implementation, debt sustainability and the government’s plans for maintaining economic growth and fiscal stability.
In his presentation, Oyedele commended the National Assembly for supporting the administration’s economic reform agenda, noting that the collaboration between the executive and legislature had helped restore macroeconomic stability and boost investor confidence.
He disclosed that Nigeria’s Gross Domestic Product (GDP) expanded by about 3.8 per cent in the first quarter of 2026, compared with 3.13 per cent recorded during the corresponding period in 2025, with the non-oil sector contributing significantly to the growth.
The minister further revealed that federal revenue reached N21.6 trillion in the first half of 2026, representing a 49 per cent increase over the same period in 2025. He attributed the growth to tax reforms, improved digital systems and stronger compliance.
Oyedele also said the country’s gross external reserves had risen above $51 billion, the highest level in 17 years, while inflation had begun to ease following coordinated fiscal and monetary policies.
During the session, Senator Mohammed Monguno (APC, Borno North) expressed concern over the country’s increasing debt profile, the slow implementation of the budget and inadequate funding for capital projects.
Senator Adamu Aliero (PDP, Kebbi Central) also questioned the non-release of capital funds to security agencies despite worsening insecurity across parts of the country, describing the development as troubling.
The lawmakers further demanded clarification over reports that only about N2 trillion was distributed among the three tiers of government from a monthly federation revenue of approximately N3.7 trillion.
Responding, Oyedele said many figures circulating publicly about Nigeria’s debt profile were misleading because they often confused borrowing approvals granted by the National Assembly with the actual amount drawn by the Federal Government.
He maintained that the government had utilised less than half of the borrowing approved by the National Assembly and had remained within the borrowing limits set by the Fiscal Responsibility Act.
The minister explained that the increase in Nigeria’s debt stock was largely due to the revaluation of external loans following the depreciation of the naira, as well as the securitisation of Ways and Means advances inherited from the previous administration.
He added that a substantial portion of domestic borrowing had been used to refinance existing obligations rather than to accumulate new debt.
On revenue generation, Oyedele noted that surpassing revenue targets did not eliminate the need for borrowing because government expenditure continued to exceed revenue.
He identified debt servicing, implementation of the new national minimum wage, funding for the Nigerian Education Loan Fund (NELFUND), and other statutory obligations as major factors driving government spending.
The minister also defended deductions from the Federation Account Allocation Committee (FAAC), stating that they were made in accordance with constitutional provisions and other existing laws.
He further explained that tax incentives granted through the Nigeria Customs Service were designed to facilitate the importation of military equipment, food items, pharmaceuticals, electric vehicles and manufacturing inputs in order to reduce production costs and ease pressure on consumers.
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