Senate Rejects Minister’s Optimism on Economic Recovery

Members of the Senate Committee on Finance expressed sharp disagreement with the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who recently touted the improving state of Nigeria’s economy under President Bola Tinubu’s administration. During the budget defense for the Ministry of Finance and related agencies’ 2025 budget at the National Assembly, Edun claimed that the economy was on an upward trajectory, citing a reduction in the budget deficit as a percentage of GDP, rising foreign reserves, and a 3.5% annual GDP growth rate.

However, several lawmakers, including Seriake Dickson (PDP, Bayelsa West), challenged this optimistic view. Dickson argued that despite the minister’s claims, the ordinary Nigerian’s purchasing power was continually diminishing, making it difficult for citizens to feel the positive impact of the government’s economic policies. He criticized the growing inflation rate and the N1,700 exchange rate, asking the minister to present concrete actions for 2025, as the current policies had not yielded tangible results for the average Nigerian.

Tensions Rise as Finance Minister Defends Government’s Economic Plan

In response to lawmakers’ skepticism, Edun defended the government’s economic management, attributing the current economic state to past mismanagement under the previous administration. He argued that President Tinubu had successfully revived the economy, shifting from the practice of printing money to procure funds from financial markets. Edun highlighted multilateral institutions’ support for Nigeria’s economic plans, suggesting that the economy was on the right path.

However, Senate Committee Chairman Sani Musa (APC, Niger East) attempted to ease tensions, emphasizing that all parties, including the government and the Senate, shared responsibility for the country’s governance. Despite this, Dickson stood firm in his critique, insisting that the policies from 2023 onwards had not delivered noticeable improvements for Nigerians.

Lawmakers Demand Action as Inflation and Debt Worsen in Nigeria

Inflation and increasing public debt were central points of concern for lawmakers during the budget defense. They expressed dissatisfaction with the government’s projections, particularly the 15% inflation benchmark in the 2025 budget, which many senators considered unrealistic. Dr. Orji Uzor Kalu and Senator Tokunbo Abiru argued that structural economic challenges—such as revenue leakages, inefficiencies in public spending, and insufficient attention to food security—had not been adequately addressed.

Edun defended the inflation target, maintaining that it reflected confidence in the Central Bank of Nigeria’s monetary policies and efforts to boost food production. However, senators remained unconvinced, urging the government to focus more on practical solutions like addressing supply-side constraints and increasing agricultural output to reduce inflationary pressures.

Senate Approves 2025 Budget Amid Growing Economic Concerns

Despite the heated debate, the Senate Committee on Finance approved the 2025 budget proposal, which includes personnel costs of N2.4 billion, overheads of N8.5 billion, and a capital allocation of N27.4 billion. However, lawmakers stressed the need for the budget to be realistic, focused on measurable outcomes, and aligned with the priorities of the Nigerian people. Sani Musa emphasized that the budget should reflect prudence, accountability, and tangible benefits for citizens.

In addition, senators urged Edun and the relevant ministries to take more urgent action to address the rising financial burdens on Nigerians, particularly in light of persistent inflation and slow economic recovery. The committee’s approval of the budget came with a strong call for the government to adopt a more aggressive and pragmatic approach in 2025 to ensure the economy begins to benefit Nigerians directly.