- President Bola Tinubu has increased the 2025 budget estimates by N4.5 trillion from an initial N49.7 trillion to N54.2 trillion
- Tinubu cited additional revenues generated by key government agencies as the reason for the increase
- The president’s request has been referred to the Senate Committee on Appropriations for urgent consideration
President Bola Tinubu has raised the 2025 budget estimates by N4.5 trillion from an initial N49.7 trillion to N54.2 trillion.
President Tinubu cited additional revenues generated by key government agencies as the reason for the increment in the budget estimates.
He stated this in separate letters sent to both the Senate and the House of Representatives, which were read during plenary on Wednesday, February 5 by the Senate President, Godswill Akpabio.
Tinubu said the increase was driven by N1.4 trillion in additional revenue from the Federal Inland Revenue Service (FIRS), N1.2 trillion from the Nigeria Customs Service (NCS), and N1.8 trillion generated by other government-owned agencies.
He said the additional revenue gave the government room to adjust its fiscal budget and address critical national challenges.
“I am writing to inform you of the availability of additional revenue amounting to 4.5 trillion naira 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.
“This additional revenue sourced from key agencies represents a pivotal opportunity to address Nigeria’s critical challenges and advance its development agenda,” the president wrote.
Akpabio referred Tinubu’s request to committee for consideration
Following the announcement on the floor of the Senate, Akpabio referred the president’s request to the Senate Committee on Appropriations for urgent consideration.
He assured lawmakers that the budget would be finalised and passed before the end of February to align with the government’s fiscal planning and timeline.
The development leaves the National Assembly with a duty to fast-track deliberations to ensure timely approval and implementation of the 2025 budget.
Key assumptions of the previous 2025 budget
The previous 2025 budget proposal, with a N13.08 trillion deficit, had key assumptions and targets
Tinubu targeted revenue of N34.82 trillion and projected government expenditure of N47.90 trillion, which includes N15.81 trillion for debt service.
He added that the budget projects Nigeria’s inflation to reduce from 34.60 per cent as of November 2024 to 15 per cent in 2025.
The president stated that the budget proposes that the exchange rate will drop from about N1,700/$ to N1,500/$ and a crude oil production assumption of 2.06 million barrels per day (mbpd) from the current 1.5 mbpd.
President Tinubu said, “The numbers for our 2025 budget proposal tell a bold and exciting story of the direction we are taking to retool and revamp the socio-economic fabric of our society.
“In 2025, we are targeting N34.82 trillion in revenue to fund the budget. Government expenditure in the same year is projected to be N47.90 trillion, including N15.81 trillion for debt servicing. A total of N13.08 trillion, or 3.89 per cent of GDP, will make up the budget deficit.
“This is an ambitious but necessary budget to secure our future.
“The budget projects inflation will decline from the current rate of 34.6 per cent to 15 per cent next year, while the exchange rate will improve from approximately N1,700 per US dollar to N1,500, and a base crude oil production assumption of 2.06 million barrels per day (mbpd).”
President Tinubu presents N47.90 trillion 2025 budget to National Assembly
Meanwhile, TheRadar earlier reported that President Bola Tinubu presented the 2025 Appropriation Bill of N47.90 trillion to a joint session of the National Assembly.
The appropriation bill, titled, ‘The restoration budget: Securing peace, building prosperity,’ was presented on Wednesday, December 18.
