President Bola Tinubu has increased the proposed 2025 budget from N49.7 trillion to N54.2 trillion, citing additional revenues generated by government agencies.
The President communicated the budget adjustment in separate letters sent to the Senate and House of Representativeson Wednesday.
The letter, read by Senate President Godswill Akpabio during plenary, attributed the budget increase to additional revenue streams, including N1.4 trillion from the Federal Inland Revenue Service (FIRS), N1.2 trillion from the Nigeria Customs Service, and N1.8 trillion generated by other Government-Owned Agencies.
Following the announcement, Akpabio referred the request to the Senate Committee on Appropriation for urgent consideration, emphasizing that the 2025 budget would be passed before the end of February.
Why the Budget Was Increased – Bagudu
Minister of Budget and National Planning, Atiku Bagudu, provided further clarification on the budget adjustment. He noted that after Tinubu initially submitted the N49 trillion budget, discussions between the executive, National Assembly, and the economic management team led to a reassessment of revenue potential.
Bagudu explained that legislative committees, including Senate Committees on Appropriation, National Planning, and Finance, identified opportunities to boost revenue by urging key institutions to improve their financial contributions.
According to him, additional revenue exceeding N4.5 trillion was identified, prompting the President to approve its allocation towards strengthening the Bank of Agriculture and Bank of Industry, diversifying the economy by investing in solid minerals, and funding key infrastructure projects.
Bagudu also addressed the Medium Term Expenditure Framework (MTEF), stating that adjustments would be necessary to align with the revised budget size.
“The MTEF that was initially approved was for a budget of less than N49 trillion. With this adjustment, a consequential amendment to the MTEF will follow,” he said.
The National Assembly is expected to expedite deliberations to ensure the timely passage of the budget.