-1734645417064-119841348.jpeg&w=1920&q=75)
- The Deputy Speaker of the House of Representatives, Benjamin Kalu, said the 2025 budget will be passed before January 30
- The budget has scaled second reading at the National Assembly
- Some lawmakers argued that the budget is inadequate considering the depreciation of the naira
The Deputy Speaker of the House of Representatives, Benjamin Kalu, has assured that the National Assembly will pass the 2025 Appropriation Bill before January 30.
This is even as the budget scaled the second reading at the legislative chamber during plenary on Thursday, December 19, after the legislators extensively debated it.
Kalu, who presided over Thursday’s plenary, assured of the speedy passage of the bill.
The bill scaled second reading as the lawmakers unanimously voted in support of the bill when it was put to a voice vote by Kalu.
Kalu then referred the bill to the committees on appropriation for further legislative work.
The lawmakers, during Thursday’s plenary, took turns elaborating on the general principles of the budget. They restated the need for thorough scrutiny of the budget breakdown during engagements with heads of Ministries, Departments, and Agencies (MDAs).
The Majority Leader of the House, Julius Ihonvbere, who led the debate, said the budget would improve the nation’s economy and consolidate the achievements of President Bola Tinubu.
In his debate, Minority Leader of the House, Kingsley Chinda, said the president’s assertion that inflation would reduced from the current 34.60 per cent to 15 per cent, as contained in the 2025 budget, is “ambitious” and unrealistic.
Chinda also noted that the allocation of N4.91 trillion to defence and security is insufficient, adding that priority should have been given to human capital development and environmental sustainability in the budget.
He said,“Our indices are not completely correct, so, it is not yet uhuru. The plan to reduce inflation from about 35 per cent to 15 per cent is over ambitious and I don’t see how we can achieve that. If we are able to achieve security in 2025, will that improve food security in 2025? I don’t think so. We can be looking at 2026 for food security.
“The budget for security will not take us to the promise land. In terms of revenue generation, the revenue sources remained the same. The concern is that we let us not over tax the people again. We should be talking about expanding the revenue sources, tighten the tax net.
“The issue of revenue target is key, while the amount for deficit appears to be too high. With this figure, I don’t see how Nigerians will not go to bed hungry in 2025. How do we achieve an exchange rate of N1,500 when we have market forces dictating the exchange. What are the things on ground that will crash the exchange rate?
“The budget might appear very beautiful but there is much more for us to do as a nation.”
2025 budget won’t sufficiently fund projects, Oluwole Oke says
A Peoples Democratic Party (PDP) lawmaker from Osun State, Oluwole Oke, noted that placed against the dollar, especially with currency depreciation, the 2025 budget is “grossly inadequate” and won’t sufficiently fund development projects.
Abdussamad Dasuki, a lawmaker from Sokoto State, corroborated Oke’s stance.
He said, “The budget may look robust on paper but if you convert it to the dollar, you will realise that the budget is not where we should be.
“With the challenges we have, if you convert it to dollars, the nation will be inadequately provided for. I urge the relevant committees particularly the committee on finance to work on this.”
During the deliberations, some lawmakers from the North-East and South-East geopolitical zones demanded more funding for their development commissions.
President Tinubu presented 2025 budget to the National Assembly
Recall that President Tinubu presented the 2025 budget estimate of N49.7 trillion to a joint session of the National Assembly on Wednesday, December 18.
The appropriation bill, titled, ‘The restoration budget: Securing peace, building prosperity,’ primarily focuses on human capital development and the country’s economic growth in line with Tinubu’s ‘Renewed Hope’ agenda.
The president noted the impact of his administration’s policies and programmes in the last 18 months, saying that though they are tough, they would lead to a collectively desired destination.
The 2025 budget proposal targets revenue of N34.82 trillion and projected government expenditure of N47.90 trillion, which includes N15.81 trillion for debt service, leaving a N13.08 trillion deficit.
It also proposes an exchange rate drop from about N1,700/$ currently to N1,500/$ and a crude oil production assumption of 2.06 million barrels per day (mbpd) from the current 1.5 mbpd.
Budget estimates contained in approved MTEF/FSP
The estimates in the 2025 budget are contained in the 2025-2027 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) of the Federal Government, which the National Assembly approved in November.
The parliament passed the oil benchmark prices of $75, $76.2, and $75.3 for the daily crude oil production of 2.06 million, 2.10 million, and 2.35 million for the 2025-2027 fiscal years, respectively.
Both chambers approved the Gross Domestic Product (GDP) growth rate projected at 4.6 per cent, 4.4 per cent, and 5.5 per cent for the three years in the fiscal strategy paper.
Senate approves Tinubu’s $2.2 billion loan request to fund 2024 budget deficit
Meanwhile, TheRadar reported that the Senate approved President Bola Tinubu’s loan request of $2.2 billion to partially finance the N9.7 trillion budget deficits for the 2024 fiscal year.
The approval followed the presentation of a report by the Chairman of the Senate Committee on Local and Foreign Debts, Aliyu Wamakko, during plenary on Thursday, November 21.
