Tinubu Increases 2025 Budget Proposal by N4.5 Trillion Amidst Mixed Reactions
President Bola Tinubu has officially requested that the proposed 2025 Appropriation Bill be raised from ₦49.7 trillion to ₦54.2 trillion. The President conveyed this adjustment in separate letters to both chambers of the National Assembly. The move, revealed on Wednesday, February 5, 2025, comes as the government projects higher revenues from key agencies.
Sources of Additional Revenue
The increase is attributed to additional revenues generated by the Federal Inland Revenue Service (FIRS) (₦1.4 trillion), the Nigeria Customs Service (NCS) (₦1.2 trillion), and other Government-Owned Enterprises (GOEs) (₦1.8 trillion). According to the Minister of Budget and National Planning, Senator Atiku Bagudu, these additional funds will support economic diversification—particularly in the solid minerals sector—and bolster the Bank of Agriculture and the Bank of Industry.
Allocation of Funds
Key allocations in the revised budget include:
- Ministry of Solid Minerals Development: ₦1 trillion to unlock Nigeria’s vast mineral resources
- Recapitalization of the Bank of Agriculture (BoA): ₦1.5 trillion
- Recapitalization of the Bank of Industry (BoI): ₦500 billion
- Critical Infrastructure Projects: ₦1.5 trillion
- Transportation Infrastructure (roads and rail): ₦700 billion
- Border Communities Infrastructure: ₦50 billion
- Military Barracks Accommodation: ₦250 billion
- Military Aviation: ₦120 billion
Government Rationale
President Tinubu justified the allocation of ₦1 trillion to the Ministry of Solid Minerals Development, stating that this investment would boost economic resilience and reduce reliance on the volatile oil sector. He also emphasized the importance of investing in the armed forces to ensure national security.
Legislative Action
Senate President Godswill Akpabio, who read the President’s letter during a Senate plenary session, praised Tinubu’s transparency. He assured lawmakers that the revised budget would be finalized and passed before the end of February and referred the President’s request to the Senate Committee on Appropriations for urgent consideration.
Opposition and Concerns
The budget increase has met with mixed reactions. While the government expresses confidence in meeting its revenue target of ₦36.35 trillion through improved tax administration and reforms, some experts have criticized the increment. Hon. Kingsley Chinda, a member of the House of Representatives, faulted the procedure for the increase. Concerns have also been raised about the projected deficit of ₦13.39 trillion, which is expected to be financed through debt, loans, and asset sales.
Budget Priorities and Context
The 2025 budget prioritizes defense and security (₦4.91 trillion), infrastructure (₦4.06 trillion), education (₦3.52 trillion), and health (₦2.48 trillion). It also aims to reduce inflation from 34.6 percent to 15 percent and stabilize the naira exchange rate at ₦1,500 per dollar. This development comes amid ongoing economic challenges in Nigeria, including high inflation and persistent concerns about diversification beyond oil revenues. The revised budget reflects a 41.9 percent increase from the previous year’s ₦35 trillion allocation.
