Senate condemns envelope system and budget irregularities, calls for reforms

DDM News

The Senate has strongly condemned the continued use of the envelope system for funding the federal government’s annual budget, describing it as a hindrance to effective and transparent budgeting.

Diaspora digital media (DDM) gathered that this criticism came as the Senate Appropriations Committee commenced its review of reports from various Senate committees on Thursday.

Lawmakers emphasized that the envelope system, which involves allocating fixed amounts to different sectors without properly considering their specific needs, has led to inefficiencies and the misallocation of resources.

They called on the federal government to abandon this outdated approach and adopt a more transparent, needs-based method that would allow for proper planning and development.

In addition to the criticism of the envelope system, the Senate was also faced with other budgetary irregularities, most notably in the 2025 budget proposal presented by the Investments and Securities Tribunal (IST).

The Senate Committee on Capital Market rejected the budget proposal after uncovering several discrepancies and errors in the figures and items included in the document.

These discrepancies were deemed serious enough to warrant a call for corrections, further underscoring the ongoing issues of mismanagement and lack of proper oversight in the country’s budgeting process.

The Senate’s disapproval of the IST’s budget proposal came after a defense session chaired by Senator Osita Izunaso, during which the tribunal’s budget was scrutinized in detail.

During the session, it became evident that the figures provided were not aligned with the expected standards for budgeting, with several items and amounts being inconsistent or improperly accounted for.

As a result, Senator Seriake Dickson (PDP-Bayelsa) moved a motion, seconded by Senator Aliyu Wadada (SDP-Nasarawa), to reject the proposal until corrections were made.

The committee then directed IST Chairman Amos Azi to return the following day at noon with a revised budget that properly addressed the identified issues.

IST Chairman Amos Azi, upon realizing the extent of the errors, apologized to the Senate committee for the discrepancies in the proposal.

He assured the lawmakers that steps would be taken to address the irregularities and present an accurate and revised budget proposal.

However, this episode highlights a recurring issue with the federal government’s budgeting system—one that has seen repeated irregularities, misallocations, and a lack of proper alignment between proposed budgets and actual needs.

The Senate’s concern over the envelope system of funding and the IST’s budget irregularities reflect broader concerns regarding the management of public funds and the ability of various government agencies to present transparent, accurate financial proposals.

Senate have argued that the envelope system, which provides a fixed amount of money to be distributed to different

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