Federal Government has initiated moves to increase Nigeria’s 2025 budget to ₦54.2 trillion, marking a 9.1% rise from the initial ₦49.7 trillion presented to the National Assembly on December 18, 2024. The proposal, detailed in a letter from President Bola Ahmed Tinubu, was read at the Senate plenary by Senate President Godswill Akpabio.
The additional ₦4.53 trillion revenue was sourced from the Federal Inland Revenue Service (₦1.4 trillion), Nigeria Customs Service (₦1.2 trillion), and other government-owned agencies (₦1.8 trillion). The increase aims to enhance economic development, infrastructure, and security.
Breakdown of Proposed Allocations
The additional funds will be directed to key sectors, including:
- Solid Minerals Sector – ₦1 trillion for economic diversification.
- Bank of Agriculture Recapitalization – ₦1.5 trillion to boost food security.
- Bank of Industry Recapitalization – ₦500 billion to support SMEs.
- Critical Infrastructure Projects – ₦1.5 trillion, including:
- Irrigation Development – ₦380 billion.
- Transportation Infrastructure (Roads & Rail) – ₦700 billion.
- Border Communities Infrastructure – ₦50 billion.
- Military Barracks & Aviation – ₦370 billion.
Financial analysts warn that the budget increase may threaten macroeconomic stability. David Adonri, Executive Vice Chairman at Highcap Securities, criticized the move, stating that expansionary fiscal policies conflict with the Central Bank’s anti-inflation measures. He cautioned that rising deficits could fuel inflation beyond the government’s target of 15%.
With the Senate expected to approve the increase by February’s end, all eyes remain on how the government balances spending, revenue generation, and economic stability.
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