Edun struggles as senate demands answers for subsidy, debt servicing, budget implementation

Tensions ran high in the Senate chambers on Thursday as lawmakers grilled the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, over the Federal Government’s financial management following the removal of the fuel subsidy in June 2023.

Originally convened to defend the proposed 2025 budget, the session quickly escalated into a heated interrogation on fiscal transparency and accountability.

The Senate Appropriation Committee turned the spotlight on two contentious issues: the savings accrued from the subsidy removal and the Federal Government’s mounting debt servicing obligations. Senators demanded clarity on how these funds had been managed, with particular focus on the implementation of the 2024 budget.

Senator Abdul Ningi (PDP, Bauchi Central) led the charge, questioning the government’s transparency.

“What is the budget performance achieved so far for 2024, especially in terms of capital expenditure?” Ningi queried. “We haven’t heard how much has been saved from the subsidy removal or how much has been spent. What are the numbers for debt servicing in 2024, and what do we expect to spend in 2025?”

Caught off guard, Edun struggled to provide immediate answers. Seeking reprieve, he requested a closed-door session to offer what he described as “detailed explanations.” His request prompted Committee Chairman Senator Solomon Olamilekan (APC, Ogun West) to excuse journalists from the room, leaving the discussions behind closed doors.

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The scrutiny extended beyond Edun. Minister of Budget and Economic Planning, Atiku Bagudu, faced similar grilling over his ministry’s handling of funds and projections. The session also spotlighted heads of government agencies defending their 2025 budget proposals.

The National Orientation Agency (NOA) and News Agency of Nigeria (NAN) faced particularly sharp criticism. Senator Kenneth Eze (APC, Ebonyi Central), who chaired the session with these agencies, expressed dissatisfaction with their submissions.

The NOA’s Director-General, Lanre Issa-Onilu, struggled to justify a proposed “National Identity Project,” which Senator Eze described as vague and disconnected from grassroots concerns. Issa-Onilu argued that the project was critical to addressing societal value-system challenges, stating, “National identity is key to nation-building and development.”

Similarly, NAN’s Managing Director, Ali Mohammed, was directed to reconcile discrepancies in the agency’s 2024 budget performance before its 2025 proposal could be considered. Both agencies were ordered to revise and resubmit their budget proposals.

The day’s proceedings revealed growing frustrations among lawmakers over what they perceive as poor budget implementation and a lack of transparency in government spending.

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Many senators voiced concerns that the Federal Government had yet to provide clear answers on crucial economic issues, such as the effective use of subsidy savings and the growing burden of debt servicing.

As the Senate continues its review of the 2025 budget, Thursday’s session underscores the increasing demand for fiscal accountability from government officials and agencies.

Lawmakers are expected to push for more rigorous oversight mechanisms to ensure transparency and proper implementation of the budget in the coming fiscal year.