NB247
President Bola Tinubu has proposed to raise the 2025 Budget from N49.7tn to N54.2tn being encouraged by additional revenues generated by key government agencies.
The proposal which was set to both houses of the National Assembly, was read on the floors of the Senate and the House of Representatives.
Tinubu presented a N49.7tn budget proposal, themed ‘Budget of Restoration: Securing Peace, Rebuilding Prosperity,’ to the National Assembly in November last year.
The Federal Government projects a total revenue of N36.35tn for 2025, anchored on improved non-oil revenue generation. This includes expanded tax collections, customs duties, and independent revenue from government-owned enterprises, alongside oil revenue projections based on a crude oil benchmark of $75 per barrel, a production target of 2.06 million barrels per day, and an exchange rate of N1,500 per USD.
The total expenditure of N49.7tn includes significant allocations to critical sectors while targeting a fiscal deficit of N13.39tn (3.96 per cent of GDP). This deficit will be financed through domestic and external borrowings as well as innovative public-private partnership arrangements.
However, the President said the new alteration was informed by N1.4tn in additional revenue from the Federal Inland Revenue Service, N1.2tn from the Nigeria Customs Service, and N1.8tn generated by other government agencies.
The Federal Government said the increase would also support its diversification programme by investing more into the solid minerals sector and infrastructure projects.
Following the reading of the letter, Akpabio referred the President’s request to the Senate Committee on Appropriations for urgent consideration.
He also assured lawmakers that the budget would be finalised and passed before the end of February.
After reading the letter, Mr 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.
The Minister of Budget and Economic Planning, Atiku Bagudu, had earlier justified the increase of the budget, saying that it was established that the government-owned enterprises, including the Nigeria Customs Service, could contribute more revenue.
He said, “You will recall, Mr President submitted the N49tn 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.
“So, additional revenue amounting to over N4.5tn was established, and this was taken to the President.
“And guided that this additional revenue should be used further to strengthen the Bank of Agriculture, Bank of Industry, support the diversification programme by putting more money in the solid minerals sector and infrastructure projects.”