By George Ozalla
The Senate Committee on Finance on Monday subjected the Minister of Finance and Coordinating Minister of the Economy, Dr. Taiwo Oyedele, to intense questioning over Nigeria’s rising debt profile, slow implementation of the 2026 budget, remittance of Internally Generated Revenue (IGR) and operating surplus by Ministries, Departments and Agencies (MDAs) into the Consolidated Revenue Fund (CRF).
The minister appeared before the committee during an investigative hearing on the remittance of IGR and operating surplus into the CRF by MDAs for the 2023 to 2025 fiscal years.
Chairman of the committee, Senator Sani Musa (APC, Niger East), said the exercise was part of the Senate’s constitutional oversight responsibility aimed at promoting transparency, accountability and prudent fiscal management.
Musa acknowledged that the economic reforms of the Federal Government had produced encouraging results but stressed the need to ensure that the gains translated into reduced inflation, job creation and improved living standards for Nigerians.
He said the committee would examine revenue performance, fiscal reforms, budget implementation, debt sustainability and the government’s strategy for sustaining economic growth and fiscal resilience.
Oyedele commended the National Assembly for supporting the administration’s economic reforms, saying the cooperation between the executive and legislature had contributed to restoring macroeconomic stability and improving investor confidence.
The minister disclosed that Nigeria’s Gross Domestic Product (GDP) grew by about 3.8 per cent in the first quarter of 2026, compared with 3.13 per cent recorded in the corresponding period of 2025.
He attributed much of the growth to the non-oil sector, which he said remained a major driver of economic expansion.
Oyedele further told lawmakers that federal revenue rose to N21.6 trillion in the first half of 2026, representing a 49 per cent increase over the same period in 2025.
He attributed the improvement to tax reforms, increased digitalisation of revenue collection and stronger compliance.
The minister also revealed that Nigeria’s gross external reserves had exceeded $51 billion, the highest level in 17 years, while inflation had started moderating following coordinated fiscal and monetary policy measures.
However, lawmakers raised concerns over the country’s debt profile, capital budget implementation and revenue management.
Senator Mohammed Monguno (APC, Borno North) expressed worry over the continued rise in public debt, slow implementation of the 2026 budget and inadequate funding for capital projects.
He questioned whether the increase in government revenue was translating into improved infrastructure delivery and better services for Nigerians.
Senator Adamu Aliero (PDP, Kebbi Central) also raised concerns over the non-release of capital allocations to security agencies despite worsening insecurity across the country.
Aliero described the situation as a major concern, stressing that security institutions required adequate funding to effectively address the nation’s security challenges.
The lawmakers also sought clarification over reports that only about N2 trillion was shared among the three tiers of government from monthly federation revenue of about N3.7 trillion.
Speaking during the hearing, Vice Chairman of the committee, Senator Isa Jibrin, stressed the need for strict accountability in the management of public resources.
Jibrin said every kobo due to the government must be properly accounted for, particularly in relation to statutory remittances by MDAs into the Consolidated Revenue Fund.
He said the essence of the investigation was to ensure compliance with existing laws and block revenue leakages that could deprive government of funds needed for development.
Responding to questions on the country’s debt situation, Oyedele said many figures being circulated publicly were misleading because they often confused borrowing approvals granted by the National Assembly with actual funds accessed by government.
He maintained that the Federal Government had not utilised up to half of the borrowing approved by the National Assembly and had remained within the limits prescribed by the Fiscal Responsibility Act.
According to him, the increase in Nigeria’s debt stock was largely caused by the revaluation of external loans following the depreciation of the naira and the securitisation of Ways and Means advances inherited from the previous administration.
He added that a significant portion of domestic borrowing was used to refinance existing obligations rather than contract new debt.
Oyedele explained that despite improved revenue performance, borrowing remained necessary because government expenditure continued to exceed available revenue.
He listed debt servicing, implementation of the new minimum wage, funding of the Nigerian Education Loan Fund (NELFUND) and other statutory obligations among factors driving public expenditure.
The minister also defended deductions from the Federation Account Allocation Committee (FAAC), saying they were made in line with constitutional provisions and existing laws.
He explained that tax incentives granted through the Nigeria Customs Service were targeted at supporting the importation of military equipment, food items, pharmaceuticals, electric vehicles and manufacturing inputs.
According to Oyedele, the incentives were designed to reduce production costs, encourage industrial growth and ease pressure on consumers.
The Senate committee is expected to continue its investigation with further engagements with relevant government agencies as it seeks to strengthen accountability, improve revenue remittances and ensure effective management of public finances.
