FG paid $700m in debt services, Edun tells Senate

• Published On: 03 July 2024 at 20:09

The Senate encouraged the Federal Government on Wednesday to step up efforts to fund the capital components of the country's three national budgets, which are being implemented concurrently.

Senator Solomon Adeola, Chairman of the Senate Committee on Appropriation, given the job when the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, and the Accountant-General of the Federation, Oluwatoyin Madein, appeared before the panel to discuss the budgets' performance.

Adeola bemoaned the underfunding of the budget's capital components and encouraged Edun to address them.

Adeola stated, "The capital component of the budgets will mostly highlight this government's performance.

"The capital components tend to highlight various initiatives that will be carried out by this government, and people can say the government is doing this or that.

"That is why we are emphasising the performance of the 2024 capital component of the project."

Adeola went on to say that "the N1.84 billion achieved so far from a N9 trillion capital expenditure component is nothing to write home about."

"I would like you to please gaze in this way. And I want you to engage more with the government's ministries, departments, and agencies."

Adeola asked the Minister to interact more with the MDAs because the majority of them were unaware of the present funding system for capital projects.

The Senate panel chairman also intimated that the red chamber intends to convene a public hearing on Nigerian National Petroleum Company Limited, to which players in the oil and gas sector, including the Finance Minister, will be invited.

Adeola praised the Minister for getting 100% funding for the 2023 supplementary budgets.

He stated, "We completed the supplementary budget, and we obtained 100% release, which is quite impressive.

"It would not be inappropriate for you to receive a periodic report on the implementation level of these agencies so that you can be informed on why you should transition to the new way of payment.

"As for the main 2023 budget, we are lagging by over 50 something per cent, I also strongly believe that we should work around the clock."


The Finance Minister informed the senators that the FG had made progress in its ongoing forensic probe of the N30 trillion Ways and Means.

He also stated that the take-off of the electric and compressed natural gas vehicles has been hampered by an increase in freight rates.

Edun promised that his ministry would increase efforts to oversee revenue-generating agencies, and that debt service is up to date.

Edun stated, "The acquisition of electric and CNG buses and conversion kits, more crucially, has been slowed by an increase in freight costs.

"It is simply the resourcefulness of one of the young men in that business that allows me to use a bulk carrier with a reduced freight rate. Otherwise, the trade cost per bus got intimidating, and people simply waited to see if this procurement was viable for them."

Regarding debt payments, he stated: "We have paid $700 million in debt services for 420 national development agencies and others."

Speaking about the Ways and Means, "We are also investigating the N22.7 trillion that we discovered on the ground. We conducted a forensic audit to determine the impact.

"We are also investigating the revenues owed to us from everyone because we need to. We are servicing all debts since we believe that ways and means are decreasing rather than increasing.