President Bola Tinubu has announced an increase in Nigeria’s 2025 budget from N49.7 trillion to N54.2 trillion, signaling a boost to key sectors aimed at driving economic growth and development. The increment of N4.53 trillion comes after increased revenues from key federal agencies, including the Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS), and government-owned enterprises (GOEs).
In letters sent to both the Senate and House of Representatives, President Tinubu outlined the allocation of these additional funds, prioritizing sectors like solid minerals, agriculture, infrastructure, and military capabilities. The Ministry of Solid Minerals Development was the largest beneficiary, receiving N1 trillion to support Nigeria’s diversification efforts and reduce the country’s reliance on oil.
Other significant allocations include N1.5 trillion for the recapitalization of the Bank of Agriculture to boost food security and support smallholder farmers, N500 billion for the Bank of Industry to enhance local manufacturing, and N700 billion for transportation infrastructure, which includes road and rail development.
Despite the significance of the increased budget, there were procedural concerns raised during the presentation of the letters to the National Assembly. Hon. Kingsley Chinda criticized the format, arguing that the budget should not have been presented in the form of a letter but rather laid out as a formal document, as stipulated in Section 83 of Nigeria’s Constitution. Chinda’s concerns were echoed by other members of the House of Representatives, though Deputy Speaker Benjamin Kalu defended the procedure, citing parliamentary rules and the president’s communication via letter.
Senate President Godswill Akpabio, who read the letter in the Senate, directed the Senate Committee on Appropriations to expedite the consideration of the proposed budget increase. The consideration is expected to be concluded by the end of February.
Key Allocations:
- Solid Minerals Sector: N1 trillion to unlock Nigeria’s vast mineral resources.
- Bank of Agriculture: N1.5 trillion for supporting agricultural development and food security.
- Bank of Industry: N500 billion for stimulating local manufacturing and SME growth.
- Infrastructure Projects: N1.5 trillion for critical infrastructure development, including roads and light rail systems.
- Military Spending: N120 billion allocated for military aviation modernization.