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Contracts Execution : Revert to old payment system – Senate urges FG . .. wants replacement of Envelope system with priority based budgeting

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From left: Minister of finance and coordinating Minister of the economy, Wale Edun and Minister of Budget and National Planning; Abubakar Atiku Bagudu during budget defence at National Assembly Abuja Thursday 26th Feb. 2026. Photo: I

By George Mgbeleke

The Senate on Thursday asked the Federal Government to revert back to old payment system for contractors as against the current centralized system which made it to be indebted to many contractors even on projects executed in 2024 not talk of those of 2025 .

The committee also sought for replacement of the Envelope budgeting system with priority or performance based model just as it called for sack of the Registrar General of the Corporate Affairs Commission ( CAC) , Hussaini Ishaq Magaji, SAN.for persistent refusal to appear before the committee .

The lawmakers took these resolutions during the interactive session it had with economic management team of the Federal Government led by the Minister of Finance and Coordinating Minister of Economy , Mr Wale Edun which also had in attendance , the Minister of Budget and National Planning , Senator Atiku Bagudu , the Accountant General of the Federation , Dr Shamseldeen Babatunde Ogunjimi and the Chairman, Nigeria Revenue Service ( NRC ) Zacch Adedeji .

Putting the economic team on their toes in his opening remarks at the critical interactive session , the Chairman of the Committee , Senator Sani Musa ( Niger East ) , told them that realities on ground based on feedbacks gotten from submissions made by heads of the various MDAs during budget defence sessions , show that the impact of the economy is not felt by ordinary Nigerians .

According to him ,” the economic team need to collaborate with the National Assembly for way out , which for us here , requires replacement of current operational systems .

” Specifically, based on submissions made by heads of various agencies during the ongoing budget defence sessions , the Envelope system of budgeting has failed and needs to be replaced by priority based model .

“The incremental allocation model has outlived its usefulness. It promotes routine expenditure expansion rather than strategic prioritisation.

” Similarly , the centralized system of payment which has led to many contractors remaining unpaid for projects already executed , should be replaced with the old system which allows the various MDAs , pay contractors they gave job to ” , he said .

He further emphasised the need to restore strict adherence to the annual budget cycle, insisting that budgets must be time-bound and measurable.

“If, by December, we cannot assess ourselves realistically, then the system is failing. We must return to a disciplined budget cycle where one fiscal year ends before another begins”, he said .

In their separate remarks , all the members of the committee toed the line of the Chairman by admonishing the economic team to sit up for better budget planning and implementation as well as prompt payments of contractors .

In their responses, the economic team , assured the committee and by extension, Nigerians that the outlook for 2026 is very positive for the N58.472trillion proposed budget in terms of implementation .

He explained to the committee that N152trillion budget profile the country current has , was not accumulated by borrowings alone .

He said : “Currently, government debt in Naira terms, is 152 trillion Naira. About 30 trillion Naira came from Ways and Means inherited by this government and N9trillion incurred from exchange rate adjustment.

“So virtually half of that debt is made up of adjustments. It is not additional borrowing.
Additional borrowing since 2023 is in the 20 trillion range.

“Going forward is what matters most. Prioritization will start with the MDAs, bringing forward growth-enhancing projects. Then the Economic Management Team will review those projects, and finally, Mr. President will decide financing based on priorities, particularly for capital projects.”

Business & Economy

Niger State Moves to Sanitize Mining Sector, Tackles Illegal Activities

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Muhammad Qasim Danjuma

BY UTHMAN BABA-NASEER,MINNA

The Niger State Government has reaffirmed its commitment to reforming and regulating the mining sector to boost economic growth and protect local communities.

The Commissioner for Mineral Resources, Muhammad Qasim Danjuma stated this during an interview with journalists, where he highlighted ongoing efforts to address illegal mining and attract genuine investors into the state.

Danjuma described Niger State as one of the most blessed in Nigeria in terms of mineral deposits, noting that proper management of these resources could significantly improve the state’s economy and infrastructure.

According to him, “Niger State has witnessed several administrations since its creation in 1976, but the current era is bringing remarkable transformation across all the 25 local government areas, especially in infrastructure development.”

The Commissioner commended the leadership of Governor Mohammed Umar Bago, describing his emergence as a “divine opportunity” for the people of the state. He said the administration has demonstrated strong commitment, dedication, and visible development projects, unlike previous governments that made promises without delivering.

Speaking in the mining sector, Danjuma explained that the Ministry of Mineral Resources was created in 2017 after being separated from the Ministry of Environment. Since then, efforts have been made to reposition the sector for better performance.

He, however, identified illegal mining as a major challenge affecting the sector. According to him, many individuals and groups operate without proper licenses or community consent, thereby causing environmental damage and security concerns.

“Illegal miners and some cartels are exploiting the state’s resources for personal gain. This is a serious problem we are working hard to address,” he said.

The Commissioner explained that for anyone to operate legally, they must obtain a valid license from the Federal Ministry of Solid Minerals Development and also secure consent from host communities and clearance from the state government.

He further noted that the state has introduced new procedures requiring mining companies to engage host communities, ensure environmental protection, and contribute to local development through Community Development Agreements (CDAs).

Qasim Danjani added that the government is also encouraging artisanal miners to form cooperatives, which will enable them to operate legally and benefit from government support.

“We are working to formalize their activities, provide guidance, and ensure they contribute positively to the economy,” he said.

On enforcement, the Commissioner disclosed that several illegal miners have been arrested, while operations are ongoing to identify and remove others across the state.

He also emphasized the importance of collaboration with security agencies and federal authorities to curb illegal activities and prevent insecurity linked to unregulated mining.

The Commissioner assured that the government is creating a conducive environment for both local and foreign investors, stating that registered companies operating legally in the state are given full support and protection.

“If properly managed, the mining sector can generate revenue for the government and fund critical projects such as roads, hospitals, and other infrastructure,” he added.

Danjuma reiterated that the ultimate goal of the government is to ensure that mining activities benefit the people of Niger State while safeguarding the environment and maintaining peace in mining communities.

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Business & Economy

Tinubu seeks NASS approval for Fresh US$516,333,007 loan for construction of Sokoto-Badagry Superhighway Project

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Senate in session in the chamber

By George Mgbeleke

President Bola Ahmed Tinubu on Thursday requested the National Assembly to formally prove a foreign loan to the tune US$5168,333,007 for the construction of Sokoto-Badagry Superhighway Project.

In a letter addressed to the President of the Senate, Senator Godswill Akpabio and read to Senators at the Thursday plenary, President Tinubu urged the lawmakers to prove the proposed foreign loan for financing arrangement of a syndicated loan facility of US$516,333,007 for construction of the Sokoto and Badagry Superhighway Project.

The official communication reads:

“The purpose of this communication is to formally request the resolution of the National Assembly, pursuant to the provisions of Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011, to approve a proposed foreign financing arrangement of a syndicated loan facility of US$516,333,007 for the construction of the Sokoto–Badagry Superhighway Project.

“Specifically, approval is sought for:

A. The syndicated financing facility from Deutsche Bank in the total sum of US$516,333,007 for the execution of Sections 1, 1A, and 1B of the Sokoto–Badagry Superhighway Project.

B. The inclusion of the said financing in the Federal Government’s borrowing plan, as earlier approved by the National Assembly.
The Senate is invited to note that the Sokoto–Badagry Superhighway is a flagship infrastructure initiative under the Renewed Hope Agenda.

“The project is designed to open up Nigeria’s northwest–southwest economic corridor through the construction of an approximately 1,000-kilometre high-capacity carriageway, linking Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos States, stretching from Illela to Badagry.

“The project is expected to:
Enhance north–south connectivity and road safety

“Improve network performance along the corridor

“Reduce logistics costs and travel time

“Facilitate trade and strengthen food security.”

Continuing the statement added, “Promote national integration by linking production zones to markets and ports
Provide long-term intermodal flexibility through provision for future rail integration and utility corridors

“The proposed financing arrangement comprises a syndicated loan to be secured through Deutsche Bank AG, supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the insurance arm of the Islamic Development Bank.

“The Federal Government will provide counterpart funding in the sum of ₦265,542,689,569, covering land acquisition, compensation, and ancillary infrastructure.

“The loan has a tenure of nine years, including a grace period of up to three years, with an interest rate not exceeding the Chicago Mercantile Exchange (CME) SOFR plus 5.3 percent per annum.

“The Federal Executive Council has approved the financing arrangement and its terms.

“In light of the foregoing, approval is hereby requested from the National Assembly for:
The syndicated loan facility of US$516,333,007

“The inclusion of the facility in the borrowing plan

“The execution of Sections 1, 1A, and 1B of the project, covering approximately 120 kilometres

“A draft resolution is attached for ease of reference.”

He expressed optimism that he looks forward to the expeditious consideration and approval of this request by the Senate.”

Meanwhile,Following the presentation of the President’s request, the letter was referred to the Senate Committee on Local and Foreign Debts, with a directive to report back within one week.

Contributing to the debate, Senator Adamu Aliero commended the President for initiating what he described as a landmark project that had remained on the drawing board for over five decades.

He noted that the project is already taking shape, citing firsthand inspection of completed and ongoing sections.

According to him, the superhighway—constructed using reinforced concrete and equipped with solar-powered street lighting—meets modern infrastructure standards.

The senator stated that significant portions of the road pass through multiple states, adding that the project would drastically reduce travel time between Sokoto and Lagos from approximately 13 hours to about six hours.

He described the initiative as transformative, with the potential to positively impact the northwest, north-central, and southwest regions of the country.

Senator Aliero urged his colleagues to support the project by approving the report of the Senate Committee on Local and Foreign Debts once it is presented.

In his remarks, the President of Se Godswill Akpabio, who presided over the plenary, aligned with the position, describing the project as a major economic game changer capable of saving lives and boosting national productivity.

He emphasized that borrowing for critical infrastructure is justified, particularly where such investments yield long-term economic benefits and can facilitate repayment through generated value.

The Senate leadership subsequently urged the committee to expedite its review to enable timely consideration and approval.

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Business & Economy

Niger Delta group commends FG on Immigration Law compliance

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By David Owei,Bayelsa

A Niger Delta Think Tank, the Movement of Intellectuals for National Development (MIND), has commended the Federal Government over its directive on strict compliance with the Nigerian Immigration Law.

MIND, in a letter to the Minister of Interior, signed by its Western Coordinator, Ebi Warekromo, stated that the Ministry’s firm statement condemning the abuse of Nigeria’s immigration framework by certain expatriate workers and their employers operating within the country was a welcome development.

According to him, the Ministry’s ‘’clear and decisive position sends a strong signal that the Federal Government remains committed to upholding the rule of law, protecting the integrity of Nigeria’s immigration system, and safeguarding employment opportunities that should rightfully be available to qualified Nigerians.’’

Warekromo, while recalling a recent petition by the group that was submitted to the National Assembly, vowed that it would continue to work with all relevant agencies of the government to expose abuse of Nigeria’s Immigration Law.

The statement read in part: ‘’Our organization had recently submitted a petition to the Senate President of the Federal Republic of Nigeria, highlighting disturbing patterns of non-compliance with immigration and expatriate quota regulations by some multinational corporations operating in Nigeria. The petition specifically drew attention to issues relating to the operations of TotalEnergies Nigeria, including allegations of expatriate personnel occupying positions that are ordinarily meant for Nigerians, the misuse of expatriate quota approvals, and practices that undermine the objectives of Nigeria’s labour and local content policies.

It is therefore highly reassuring to note the Ministry’s strong condemnation of such practices and its commitment to ensuring strict compliance with Nigeria’s immigration laws. We believe this position is both timely and necessary to protect national interests, strengthen institutional accountability, and ensure that expatriate participation in Nigeria’s economy genuinely contributes to skills transfer and national development.

In light of this, the Movement of Intellectuals for National Development expresses its readiness to work constructively with the Ministry of Interior and its relevant agencies in identifying and addressing cases of immigration law violations. We believe that collaboration between regulatory institutions and responsible civil society organizations will significantly enhance efforts aimed at curbing these detrimental practices.

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