The Senate has vowed to closely scrutinise spending under service-wide votes, warning that agencies benefiting from such funds without proper accountability will no longer be tolerated.

The Chairman of the Senate Committee on Appropriations, Senator Adeola Olamilekan, issued the warning on Monday at a one-day public hearing on the 2026 Appropriation Bill, declaring that the 2026 budget would signal a clear departure from past spending practices.

Olamilekan said all expenditure items would be subjected to strict scrutiny to ensure transparency, efficiency and prudent use of public funds, urging ministries, departments and agencies (MDAs) to cooperate fully with oversight bodies.

He also announced that the National Assembly would no longer extend the implementation of federal budgets beyond December 31, noting that such extensions weaken fiscal discipline and accountability.

The senator identified the electricity sector as a major drain on government finances, stressing the need for far-reaching reforms, including unbundling and a review of electricity subsidies that currently cost the country trillions of naira annually.

Expressing concern over revenue shortfalls, Olamilekan said the proposed 2026 budget, with a projected deficit of ₦25.1 trillion, raises serious sustainability concerns.

He explained that continued borrowing had become inevitable due to heavy debt-servicing obligations inherited from previous administrations, adding that high debt-to-revenue ratios were not unique to Nigeria.

While acknowledging warnings that Nigeria’s economic potential is being undermined by weak leadership and rising debt, the senator stressed that failure to meet financial obligations could lead to a downgrade by international institutions such as the World Bank and the International Monetary Fund.

To address the funding gap, he disclosed plans to access international financial markets, summon the Group Managing Director of the Nigerian National Petroleum Company Limited (NNPCL) to clarify expected revenue contributions, and consider the privatisation of select federal government assets to support deficit financing.