President Bola Tinubu has raised the 2025 fiscal year appropriation bill from N49.7 trillion to N54.2 trillion, as announced in letters sent to both the Senate and the House of Representatives. Minister of Budget and National Planning, Senator Atiku Bagudu, stated that the increase aims to enhance revenue for the Bank of Agriculture and Bank of Industry, as well as to support the administration’s diversification program by investing more in the solid minerals sector and infrastructure projects.
However, House member Hon. Kingsley Chinda criticized the process, arguing that the executive’s presentation should not have been delivered via letter. Tinubu’s letter was read in the Senate by Senate President Godswill Akpabio and in the House by Speaker Tajudeen Abbas.
Tinubu attributed the N4.53 trillion increase to additional revenues from federal agencies, including N1.4 trillion from the Federal Inland Revenue Service (FIRS), N1.2 trillion from the Nigeria Customs Service, and N1.8 trillion from other government-owned agencies. The Ministry of Solid Minerals Development received the largest share, N1 trillion, having initially been allocated N6 billion, which was later increased to N9 billion by the National Assembly’s joint committee.
Following the reading of the letter, Akpabio directed the Senate Committee on Appropriations to expedite consideration of the request, assuring that the budget would be finalized by the end of February.
In his letter, Tinubu noted the availability of additional revenue amounting to N4,530,479,970,637 and proposed its allocation to address Nigeria’s pressing priorities. He highlighted that the federal government’s share of the revenue increase rose from N22.1 trillion to N25.1 trillion.
Tinubu proposed allocating the additional funds to various sectors, including N1 trillion for the Ministry of Solid Minerals Development to promote economic diversification, N1.5 trillion for the recapitalization of the Bank of Agriculture to improve food security, and N500 billion for the Bank of Industry to support small and medium enterprises.
He also suggested N1.5 trillion for critical infrastructure projects, N700 billion for transportation infrastructure, N50 billion for border community infrastructure, N250 billion for military barracks accommodation, and N120 billion for military aviation.
Tinubu justified the allocation to the solid minerals ministry by emphasizing its potential to enhance economic resilience and reduce dependence on oil by creating alternative revenue streams. He stated that the recapitalization of the Bank of Agriculture would empower farmers and boost agricultural productivity, while the Bank of Industry’s funding would provide affordable financing for innovation and support local manufacturing.
In his letter, he argued for military expenditure, stating that a nation’s ability to protect its citizens is foundational to its progress. He asserted that investing in the armed forces is essential for ending terrorism and ensuring economic prosperity, reflecting the administration’s commitment to inclusive growth and security.
Tinubu Ups 2025 Budget to N54.2trn frrom 49.7trn, a 9% Increase.
