The Chairman of the Senate Committee on Appropriation, Senator Solomon Adeola, has disclosed that the tax reform bills presented by President Bola Tinubu disrupted the January-to-December budget cycle of the National Assembly.
Speaking in Abuja on Tuesday, Adeola noted how legislative focus shifted to landmark tax reforms, delaying the 2024 budget process but reaffirmed commitment to passing the 2025 appropriation bill by January 31, 2025.
Adeola, who represents Ogun West Senatorial District, noted that the introduction of the tax reform bills required extensive deliberations and collaboration between the National Assembly and the executive arm of government.
He said the efforts had unintended consequences for the budget cycle, a tradition established by the 9th National Assembly.
“Along the line, the tax reform bills took a lot of our time and focus as we worked to ensure they scaled through. We are pleased that the bills have successfully passed second reading in the Senate and are now before the committee for final review,” Adeola said.
Adeola emphasized that the newly released budget review timetable remains unchanged and reflects the commitment of lawmakers to maintain fiscal discipline and achieve economic targets.
“As proposed in the timetable, we recommended a joint sitting of both Senate and House committees to engage with MDAs. This approach ensures that we complete our work swiftly and deliver the budget on time,” Adeola stated.
Responding to concerns about the potential impact of the delay on Nigeria’s fiscal and economic objectives, Adeola reassured the public of the legislature’s dedication to President Tinubu’s policy agenda.
“We are working around the clock to ensure that the delay does not derail the set aims and objectives of this administration, especially in driving economic growth and infrastructure development,” Adeola said.
The Senator expressed optimism that passing the budget by the January 31 deadline would allow the government to implement its programs effectively and avoid disruptions to governance.
What you should know
The January-to-December budget implementation cycle, a hallmark of fiscal discipline, was established during the tenure of the 9th National Assembly.
- Before this reform, budget presentations by former Presidents Olusegun Obasanjo, Umaru Musa Yar’Adua, and Goodluck Jonathan occurred sporadically, with no fixed timeframe, between 2000 and 2015.
- However, on December 18, 2024, the National Assembly approved an extension of the 2024 budget’s lifespan to June 2025. This decision was necessitated by unforeseen delays stemming from the legislative focus on key reforms, including the passage of President Tinubu’s tax reform bills.
The recent deliberations on President Tinubu’s proposed tax reform bills generated a heated debate, fuelled in large part by strong opposition from several influential governors.
