- Why FG increased 2025 budget to N54.2trn – Bagudu
President Bola Tinubu has asked the National Assembly to increase the 2025 budget by N4.5 trillion, raising the total from N49.7 trillion to N54.2 trillion.
The president’s request was contained in a letter read by the Senate President, Godswill Akpabio, during plenary on Wednesday.
The letter was also read by the Deputy Speaker, Benjamin Kalu, who led plenary at the House of Representatives, on Wednesday.
Last December, President Tinubu presented a N47.9 trillion budget, christened ‘Budget of Restoration: Securing Peace, Rebuilding Prosperity’.
The budget was designed to focus on macro-economic stability, poverty reduction, promoting economic stability, developing human capital development and insecurity.
The National Assembly has already completed the budget defence sessions for all Ministries, Departments, and Agencies.
During the sessions, the lawmakers raised concerns over alleged financial mismanagement, extravagant spending, and the inability of some agencies to account for their 2024 budgetary allocations.
For instance, the Senate Committee on Special Duties queried the State House for spending N3.9 billion to purchase operational vehicles and another N2 billion to replace its Sport Utility Vehicles in 2024.
The National Assembly Joint Committee on Steel Development also raised concern about the handling of an N2 billion project earmarked for youth training in metal works by the Federal Ministry of Steel Development.
Additionally, the Auditor General’s 2024 report exposed discrepancies in financial records across several ministries and agencies.
In the letter, President Tinubu said the increase was necessitated because of the additional revenue generated by the Federal Inland Revenue Service, Nigeria Customs Service and other revenue-generating agencies of the Federal Government in 2024.
According to the president, FIRS generated an extra N1.4 trillion. NCS contributed an additional N1.2 trillion and other agencies collectively generated N1.8 trillion.
“I am writing to inform you of the availability of additional revenue amounting to N4.5 trillion and to propose its allocation within the 2025 appropriation bill to enhance the budget’s responsiveness to the nation’s most pressing priorities and aspirations,” the letter said.
President Tinubu noted that the additional increase to the budget will give opportunity for the government to address Nigeria’s critical challenges.
“This additional revenue sourced from key agencies represents a pivotal opportunity to address Nigeria’s critical challenges and advance its development agenda,” the president said.
After reading the letter, Akpabio directed the request to the Senate Committees on Appropriations and Finance for expeditious consideration.
The senate president assured that the increase will be implemented in the 2025 budget and would be passed by the National Assembly before the end of February for the president’s assent.
Why FG jacked up 2025 budget to N54.2trn – Bagudu
The Federal Government on Wednesday explained that the increase of the 2025 budget from N49.7 trillion to N54.2 trillion is to have more revenue to strengthen the Bank of Agriculture, and Bank of Industry and to support the diversification programme by putting more money in the solid minerals sector as well as infrastructure projects.
The Minister of Budget and Economic Planning, Senator Atiku Bagudu, disclosed this to newsmen shortly after he saw off President Tinubu at the Nnamdi Azikiwe Airport, Abuja, en route to France.
Specifically, an additional N4.5 trillion was added to the 2025 Appropriation Bill currently undergoing legislative treatment at the National Assembly for consideration and passage.
Explaining the upward adjustment to the budget figure, the Minister said it was established that the government-owned enterprises including the Nigeria Customs Service, NCS, can contribute more revenue.
He said, “You will recall Mr President submitted a N49 trillion budget to the National Assembly and legislative work commenced.
“The legislative work continued with interactions between the Executive and the National Assembly. The National Assembly and the Economic Management Team continued to interrogate all figures.
“In that process, the Senate Committee on Appropriation, Senate Committee on National Planning, and Senate Committee on Finance established that we can generate more revenue by tasking all the institutions to do more and the Federal Inland Revenue Service confirmed the ability to do more than was submitted.
“Equally, it was established that the government-owned enterprises can contribute more revenue, and the Customs Service. So additional revenue amounting to over N4.5 trillion was established and this was taken to the President.
“And guided that this additional revenue should be used to further strengthen the Bank of Agriculture, Bank of Industry, support the diversification programme by putting more money in the solid minerals sector as well as infrastructure projects.”
On the adjustment of the Medium Term Expenditure Framework, Bagudu said, “Recall that even when the budget was submitted, MTEF was amended. The MTEF that was initially approved was for a budget of less than N49 trillion so it goes together and so the consequential amendment to the MTEF will certainly follow.”
