President Bola Tinubu has proposed an upward revision of Nigeria’s 2025 budget, elevating it from the initially proposed ₦49.7 trillion to ₦54.2 trillion. This adjustment reflects an additional ₦4.5 trillion in projected expenditures, underscoring the administration’s commitment to leveraging newfound revenues for national development.
The president communicated this proposal through letters addressed to both chambers of the National Assembly. In these correspondences, he attributed the budget augmentation to substantial revenue gains from key government agencies during the 2024 fiscal year. Specifically, the Federal Inland Revenue Service (FIRS) generated an extra ₦1.4 trillion, the Nigeria Customs Service (NCS) contributed an additional ₦1.2 trillion, and various other government-owned agencies collectively added ₦1.8 trillion to the national coffers.
President Tinubu emphasized that this surge in revenue presents a pivotal opportunity to address Nigeria’s critical challenges and advance its development agenda. He stated, “This additional revenue sourced from key agencies represents a pivotal opportunity to address Nigeria’s critical challenges and advance its development agenda.”
In response, Senate President Godswill Akpabio referred the president’s request to the Senate Committee on Appropriations for prompt consideration. He assured that the revised budget would be finalized and passed before the end of February, aligning with the government’s commitment to timely fiscal planning.
The proposed budget increase is expected to bolster allocations across various sectors, including infrastructure, social services, and economic development initiatives. Analysts suggest that the enhanced budget could lead to improved service delivery and accelerated growth in critical areas. However, they also caution that careful implementation and oversight will be essential to ensure the efficient utilization of the expanded budget.
This budgetary revision comes in the context of Nigeria’s broader economic objectives. In November 2024, Budget Minister Atiku Bagudu announced plans for a 2025 budget totaling ₦47 trillion, based on an oil price assumption of $75 per barrel and a target production of 2 million barrels per day. The proposed budget included a deficit of ₦13.8 trillion, or 3.87% of the estimated GDP, with a forecast exchange rate of 1,400 naira per U.S. dollar. The minister highlighted that the government’s fiscal efforts were on track, with key non-oil revenue streams performing better than anticipated.
The recent revenue gains from FIRS, NCS, and other agencies have provided the government with the fiscal space to expand the budget and address pressing national priorities. As the National Assembly deliberates on the proposed adjustments, stakeholders will be keenly observing how the additional funds are allocated to ensure they effectively contribute to Nigeria’s development goals.
Key Changes in Nigeria’s 2025 Budget
President Bola Tinubu has proposed an increase in Nigeria’s 2025 budget from ₦49.7 trillion to ₦54.2 trillion, citing additional revenues generated by key government agencies.
Revenue Sources
The additional ₦4.5 trillion in revenue is attributed to:
- Federal Inland Revenue Service (FIRS): An extra ₦1.4 trillion.
- Nigeria Customs Service (NCS): An additional ₦1.2 trillion.
- Other Government-Owned Enterprises: A combined contribution of ₦1.8 trillion.
