President Bola Tinubu has jacked up the proposed 2025 budget, increasing it from N49.7 trillion to N54.2 trillion, citing new revenue gains.
The adjustment comes on the back of additional revenue inflows from key government agencies, strengthening the government’s fiscal position.
In separate letters sent to both the Senate and the House of Representatives, President Tinubu detailed the rationale behind the budget increase.
The letters, read during plenary by Senate President Godswill Akpabio, outlined revenue surpluses from various government bodies as the primary drivers of the adjustment.
According to the President, the revenue boost includes:
N1.4 trillion from the Federal Inland Revenue Service (FIRS); N1.2 trillion from the Nigeria Customs Service (NCS); N1.8 trillion from other government-owned agencies.
These additional funds he said have provided the government with the fiscal room to expand the budget and address critical national priorities.
Following the announcement, the Senate President 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, aligning with the government’s commitment to timely fiscal planning.
With the National Assembly expected to fast-track deliberations, attention will now turn to key spending priorities and how the additional revenue will be allocated across sectors such as infrastructure, social services, and economic development.
The revised budget signals a more robust fiscal framework, potentially strengthening investor confidence and ensuring continued economic stability.
Analysts suggest that the increased allocations could lead to improved service delivery and accelerated growth in critical sectors. However, careful implementation and oversight will be essential to ensure efficient utilization of the expanded budget.
President Tinubu assured Nigerians during the budget presentation of his commitment to reducing Nigeria’s inflation rate from 34.6 per cent to 15 per cent by the end of 2025.
Tinubu stated, “The 2025 budget projects that inflation will decline significantly from the current 34.6 per cent to 15 per cent.”
Also, the president promised to stabilise the exchange rate to N1,500/$1. According to him, “Concurrently, the exchange rate will improve from approximately N1,700 per dollar to N1,500. These projections are critical for stabilizing the economy and ensuring sustainable growth.”
Some analysts have expressed concerns over the fiscal regime of President Bola Tinubu’s administration, describing the increase in debt servicing from N8 trillion in 2024 to N16 trillion in 2025 as a ‘red flag’.