Senate passes N54.9tn 2025 budget, adds N746bn

The Senate has passed a harmonized 2024 budget Appropriation Bill totalling N54.9tn for a third reading. The National Assembly also increased the bill by about N746bn, moving the budget from N54.2tn to N54.9bn.

The budget was passed on Thursday by Godswill Akpabio, the Senate President. The budget was passed after the submission of the budget report by Olamilekan Adeola, the chairman, of the Senate Committee on Appropriation.

He explained that the Statutory Transfers gulp, N54,990,165,355,396;  Recurrent Expenditure, 3,645.761,358,925; Capital Expenditure, 13.064,009,682,673; Debt Servicing, 23,963,251.624,250 and Fiscal Deficit, 14.317,142.689.548.

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He explained, “The initial proposal of the Executive proposal was N49,740,165,355,396, of which N4,435,761,358,925  only is for Statutory Transfers, N16,327,142,689,549  is for Debt Service, N14,123,544,196,406 only, is for Recurrent (Non-Debt0 Expenditure, while the sum of N14,853,717,110,517 only is for contribution to The Development fund for Capital Expenditure for the year ending on the 31st December 2025.

President Bola Tinubu had last week written to the National Assembly requesting an increase in the 2025 budget from ₦49.7 trillion to ₦54.2 trillion.

His request was conveyed in separate letters sent to both the Senate and the House of Representatives, which were read during plenary by Senate President and Speaker of the House Abbas Tajudeen. In the letter read by Akpabio, Tinubu explained that the proposed increase is based on additional revenue generated by key government agencies.

Tinubu initially presented a ₦47.9 trillion budget last December, christened the ‘Budget of Restoration: Securing Peace, Rebuilding Prosperity.’

According to the breakdown, the Federal Inland Revenue Service (FIRS) contributed ₦1.4 trillion, the Nigeria Customs Service generated ₦1.2 trillion, while other government-owned agencies accounted for ₦1.8 trillion.

He said, “I am writing to inform you of the availability of additional revenue amounting to ₦4.5 trillion 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.”

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The President detailed how the extra revenue will be spent, stating, “Solid Minerals will get ₦1 trillion; Bank of Agriculture Recapitalization, ₦1.5 trillion; Bank of Industry Recapitalization, ₦500 billion; Critical Infrastructure, ₦1.5 trillion; Military Barracks Accommodation for N250 billion; Military Aviation for N120 billion.”

Also included are: “Irrigation Development: N380 billion; Transportation Infrastructure: N700 billion; Border Communities Infrastructure: N50 billion.”