The Senate has said the economic reforms introduced by President Bola Tinubu, though painful, were unavoidable and are already laying the foundation for long-term stability, inclusive growth and shared prosperity.
The Chairman of the Senate Committee on Appropriations, Senator Solomon Adeola, disclosed this on Monday during the public hearing on the 2026 Appropriation Bill held at the National Assembly Complex, Abuja.
Adeola argued that Nigeria was at a defining point in its economic journey, transitioning from a phase of difficult but necessary reforms to one of consolidation and renewed resilience.
The Ogun West senator noted that over the past two and a half years, the Federal Government had undertaken some of the most consequential economic reforms in recent history, stressing that the measures were unavoidable if the country was to overcome entrenched structural weaknesses and restore investor confidence.
He said, “This engagement comes at a defining moment in Nigeria’s economic journey, as our nation transitions from a period of painful but necessary reforms to one of consolidation, renewed resilience, and shared prosperity.
“These reforms were neither easy nor painless, but they were unavoidable if our economy was to break free from long-standing structural weaknesses and restore confidence among citizens, investors, and development partners.”
Adeola described the public hearing as more than a routine legislative exercise, saying it was a critical platform to ensure that the promises of reform translated into measurable and lasting impact.
Commending President Tinubu’s leadership, the lawmaker said the 2026 budget, titled “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” reflected a deliberate effort to lock in reform gains and ensure inclusive growth.
“The 2026 budget reflects a deliberate effort to lock in the gains of reform, strengthen economic buffers, and ensure that growth becomes inclusive and sustainable,” he stated.
According to him, the President had been forthright in acknowledging the temporary hardships faced by Nigerians while remaining resolute that the sacrifices would yield long-term stability.
He listed key reform areas to include exchange rate unification, deregulation of the downstream petroleum sector, tax system overhaul and public finance restructuring, noting that the task before the National Assembly was to ensure faithful implementation through the budget.
Adeola said the benefits of the reforms were already becoming evident.
The lawmaker said, “Inflation has eased to about 15 per cent, foreign reserves exceed US$42 billion, the exchange rate has stabilised, and the downstream petroleum sector is fully market-driven.
“These gains are reinforced by an unprecedented infrastructure drive, with over 440 road projects, more than 2,700 km of highways under construction, and major rail projects advancing.”
He added that the reforms had freed up revenues, resulting in improved Federation Account Allocation Committee distributions to states and local governments, while also supporting an extensive infrastructure drive across the country.
The Senate committee chairman also cited international validation of the reform programme, saying the World Bank had acknowledged that the measures were restoring macroeconomic discipline and fiscal transparency.
On the 2026 budget framework, Adeola said the central theme of the hearing, “From Budget to Impact,” underscored the need to move beyond projections to tangible outcomes that improve security, infrastructure, livelihoods and investor confidence.
He disclosed that the Executive had anchored the 2026 budget on key macroeconomic assumptions, including an inflation rate of 16.5 per cent, an exchange rate of ₦1,400 to the dollar, crude oil production of 1.84 million barrels per day and a benchmark oil price of $64.85 per barrel.
The senator assured that the Senate Committee on Appropriations would rigorously scrutinise these assumptions and undertake sustained oversight to ensure effective implementation.
According to him, the aggregate revenue for 2026 was projected at ₦33.19tn, while total expenditure stood at ₦58.47tn, leaving a deficit of ₦25.27tn.
A breakdown of the expenditure shows that ₦15.90tn was allocated to debt servicing, ₦15.25tn to recurrent non-debt expenditure and ₦23.21tn to capital expenditure, reflecting a strong emphasis on infrastructure and productivity-enhancing investments.
On sectoral priorities, Adeola said ₦5.41tn had been allocated to defence and security, ₦3.56tn to infrastructure, ₦3.52tn to education and ₦2.48tn to health, stressing that effective implementation would improve security, unlock private investment and raise the quality of life for Nigerians.
Despite fiscal pressures, he expressed confidence in the Tinubu administration’s ability to address longstanding revenue, debt and structural challenges.
The senator added that the 2026 Budget was deliberately structured to support Nigerian-owned businesses through the Nigeria First Policy.
“This policy prioritises SMEs and wholly-owned Nigerian companies in public procurement, contract awards, and government-funded projects.”
