- During a Senate budget defence session, Senator Abdul Ningi questioned the federal government’s handling of funds from the fuel subsidy removal.
- Ningi raised concerns about Nigeria’s foreign debt servicing and the slow progress of capital project implementation in the 2024 budget.
- Minister Wale Edun requested a closed-door session to provide detailed responses, with further discussions expected behind closed doors.
On Thursday, January 9, Bauchi Central Senator Abdul Ningi questioned the federal government’s handling of funds from the removal of fuel subsidies. Ningi, a member of the opposition Peoples Democratic Party (PDP), raised concerns during a Senate Committee on Appropriations budget defence session.
The session included officials from the economic team, led by Minister of Finance Wale Edun. They defended the budget allocations for various Ministries, Departments, and Agencies (MDAs). Ningi’s questions focused on the transparency of how the government spent proceeds from removing the subsidy.
President Bola Tinubu announced the removal of the fuel subsidy on May 29, 2023, as part of his economic reforms. Ningi pressed Edun and the financial team to explain the status of the subsidy funds. He asked how much the government had saved and how it had utilised those funds.
“We haven’t heard from the minister how much has been saved from the removal of fuel subsidy and how much has been expended,” Ningi said. He demanded clarification on the government’s spending of the proceeds.
The senator also raised concerns about Nigeria’s foreign debt. He asked how much the government had spent on debt servicing in 2024 and how much it expected to pay in 2025. Ningi’s questions highlighted the country’s ongoing financial pressures.
Ningi also criticised the government’s handling of the 2024 budget. He pointed out the slow progress in capital projects and questioned whether the government could complete the proposed projects by June 2024. The 2024 fiscal year ends in June, and Ningi sought clarity on whether the government would meet its targets.
“Will the Minister of Finance guarantee that the extension of the capital component of the 2024 budget to June 30, 2025, will deliver the desired results?” Ningi asked. He expressed concerns about the low implementation rates of the capital projects so far.
Minister Edun requested a closed-door session to discuss the issues in more detail. “Are we in a closed-door session? If we are not, I will humbly request one for detailed explanations,” Edun said. The sensitive nature of the questions prompted the request for privacy during the discussion.
Senate Committee on Appropriations Chairman Adeola Olamilekan agreed and directed the committee members to meet privately. The closed-door session aimed to allow for more in-depth discussions of the concerns raised.
The Minister of Budget and National Planning, Atiku Bagudu, also attended the budget defence. His presence underscored the importance of addressing the economic and budgetary issues.
Senator Ningi’s questioning reflected growing concerns about the impact of the subsidy removal and the government’s fiscal policies. Many Nigerians have expressed dissatisfaction with the rising cost of living since the subsidy was removed. Despite this, the government maintains that the long-term benefits of these reforms will outweigh the current hardships.
The session ended with a commitment to further discussions behind closed doors. How the government will respond to the mounting pressure for accountability regarding its economic policies remains to be seen.