President Bola Tinubu has announced an increase in Nigeria’s 2025 budget, revising the initial proposal of ₦49.7 trillion to ₦54.2 trillion, marking a significant addition of over ₦4 trillion. The adjustment, which reflects the country’s evolving economic needs, was communicated by the President through letters addressed to both the Nigerian Senate and the House of Representatives. The letters were presented during the plenary session on Wednesday, where Senate President Godswill Akpabio read them to lawmakers.
The increase is primarily attributed to additional revenues generated by key government agencies. According to the President’s communication, the Federal Inland Revenue Service (FIRS) contributed ₦1.4 trillion to the increase, while the Nigeria Customs Service (NCS) added ₦1.2 trillion. Furthermore, other government-owned agencies contributed ₦1.8 trillion, making up the total additional revenue that resulted in the upward revision of the national budget.
Senate President Akpabio, while addressing the plenary, assured that the Senate would take a close look at the revised budget. He emphasized the importance of ensuring that all the allocations align with the nation’s development goals. “The revised budget will be subjected to thorough scrutiny, and we aim to pass it by the end of February,” Akpabio remarked, signaling the Senate’s commitment to a timely review and passage.
The new ₦54.2 trillion budget represents a sharp increase compared to the 2024 budget estimate of ₦27.5 trillion. This nearly doubling of the budget reflects the government’s intention to expand economic activities, address emerging challenges, and provide more resources for critical infrastructure and social programs. However, the increase has also raised questions about the sustainability of such significant fiscal expansions in light of the country’s ongoing financial challenges.
Some economists have expressed concern about the potential impact of this budget hike on Nigeria’s debt profile and overall fiscal health. “While the increased budget is aimed at stimulating economic growth, it is important to assess how the government plans to manage such a large expenditure, especially given Nigeria’s existing fiscal constraints,” said economist Dr. Chijioke Okoro.
On the other hand, government officials have defended the decision, citing the growing revenues from various agencies as a positive sign of Nigeria’s improving revenue generation capacity. “The increased revenue collections from agencies like the FIRS and Customs show that the government is making strides in diversifying income sources, which will ultimately support sustainable growth,” said a senior official in the Ministry of Finance.
