Natasha Akpoti-Uduaghan, senator representing Kogi central, on Tuesday queried the federal government’s proposed plan to “mop up” funds to support the private sector during an interactive session on the 2026–2028 medium-term expenditure framework (MTEF) and fiscal strategy paper (FSP).
The session, organised by the senate committee on finance at
the national assembly complex, featured Wale Edun, minister of finance and
coordinating minister of the economy, who presented the government’s fiscal
outlook and policy direction.
Reacting to the minister’s presentation, Akpoti-Uduaghan
described the explanation on the proposed private-sector funding as lacking
clarity.
The senator asked the minister to clarify the source of the
funds, citing public concerns over heavy taxation.
Akpoti-Uduaghan also sought details on how the private
sector would access the funds and the criteria that would apply.
“Speaking to the closing part of your presentation where you
mentioned that the government is trying to mop up funds to support the private
sector, I find that quite generic and bland,” she said.
“Kindly explain where these monies will be mopped from to
support the private sector; is it from taxes, duties, levies, dormant accounts,
and so much more, considering the fact that we have seen an outcry from the
public with regards to heavy taxation?
“How exactly will the private sector access these funds?
Will it be through banks and the heavy interest rates, or are they going to be
grants?
“How do you select the beneficiaries from the private
sector, and what are the criteria, terms, or conditions for these loans or
grants?”
The lawmaker further asked whether the funds would be used
to provide infrastructure and an enabling environment for entrepreneurs.
“Will these funds be used to provide the enabling
environment and infrastructure necessary to support entrepreneurs, such as
electricity, free internet access in public spaces, roads, and others?” she
queried.
“Exactly what will these funds be used for, and how will the
private sector access them?”
Responding, Edun acknowledged the senator’s concerns and
offered a broad explanation based on international development experiences.
“The Koreas of this world, the Singapores of this world, and
the Chinas, they did it by mobilising their own savings,” the minister said.
“When they produce, they don’t consume everything; they put
some back into productive savings.”
He said discussions are ongoing to establish a voluntary
national savings scheme involving the government, private sector and financial
elites.
“It will be voluntary; it’s not taxation, it’s not
compulsory; it’s giving people a chance to have unearned income at all levels,”
he added.
“By that, we mobilise funds even at the grassroots level to
complement development programmes that push resources down.”
On Wednesday, the senate passed the 2026–2028 MTEF and FSP,
paving the way for President Bola Tinubu to present the 2026 appropriation bill
estimated at N54.4 trillion.
Senate President Godswill Akpabio, however, stated that the
document is not set in stone, noting that further reviews could be made when
the budget is formally presented.
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