The 2025 budget was increased from N49.7 trillion to N54.2 trillion to strengthen key economic sectors and infrastructure projects, Minister of Budget and Economic Planning, Abubakar Atiku Bagudu, explained yesterday.
It was after President Bola Ahmed Tinubu urged the National Assembly to increase the budget by N4.53 trillion.
His letter of request was read by Senate President Godwill Akpabio during plenary.
The President attributed the increase to additional revenues generated by key government agencies.
These include N1.4trillion by the Federal Inland Revenue Service (FIRS), N1.2 trillion by the Nigeria Customs Service and N1.8trillion by other government-owned agencies
After reading the letter, Akpabio referred it to the Senate Committee on Appropriations.
He expects the budget will be reviewed and passed this month.
Bagudu told reporters that the additional N4.5 trillion will further strengthen the Bank of Agriculture (BoA) and the Bank of Industry (BoI), boost diversification by investing more in the solid minerals sector, and support projects under the Renewed Hope Infrastructure Fund.
“You’ll recall that President Tinubu submitted a N49.7 trillion budget to the National Assembly, and legislative work commenced.
“Through continued interactions between the Executive and the National Assembly, it was established that we could generate more revenue,” he said.
According to the minister, the Senate committees on appropriations, national planning, and finance, along with the economic management team, determined that various government institutions could contribute more revenue than initially projected.
“The FIRS confirmed their ability to generate more than what was initially submitted,” he added.
Bagudu said other revenue-generating agencies, including government-owned enterprises and the Nigeria Customs Service, also confirmed their capacity to increase their contributions, resulting in additional revenue of over N4.5 trillion.
He said President Tinubu, after consultations, directed that the extra funds be strategically allocated to critical sectors.
“Mr. President was briefed on this additional revenue, and he directed that it should be used to further strengthen the BoA, the BoI, support diversification by putting more money in the solid mineral sector, as well as projects under the Renewed Hope Infrastructure Fund,” Bagudu said.
President Tinubu’s letter of request was entitled: “2025 Appropriation Bill – Allocation of additional revenue of N4.53trillion”.
It reads in part: “I am writing to inform you of the availability of additional revenue amounting to N4,530,479,970,637 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.”
He stated that the additional revenue was sourced from key agencies and represents a pivotal opportunity to address critical challenges and advance the development agenda.
They include Government-Owned Enterprises (GOEs), N1,823,879,970,637 and FIRS, N1,497,600,000,000, which represent the Federal Government’s 52 per cent share of the increase in revenue from N22.1 trillion to N25.1 trillion.
The President said the Nigerian Customs Service (NCS) generated an additional N1,209,000,000,000, representing the Federal Government’s 52 per cent share of the increase in revenue from N6.5 trillion to N9.0 trillion.
With this additional revenue, the 2025 Appropriation Bill’s total budget size rose from N49.7 trillion to N54.2 trillion.
President Tinubu said the increase demonstrates his administration’s “commitment to inclusive growth and security”.
He added: “I propose that these funds be allocated to the following transformative expenditure areas:
“Solid minerals sector – N1 trillion: to support economic diversification by unlocking the potential of Nigeria’s vast solid mineral resources, which remain an untapped revenue stream and a vital pillar of non-oil growth.
“Recapitalisation of the Bank of Agriculture (BoA) – N1.5 trillion: to transform Nigeria’s agricultural landscape, ensure food security, and empower smallholder farmers and agribusinesses.
“Recapitalisation of the Bank of Industry (Bol) N500billion: to provide critical support to small and medium enterprises (SMEs), drive local manufacturing, and reduce dependence on imports.
“Critical Infrastructure Projects (RHID Fund) – N1.5 trillion.”
Out of the RHID Fund, irrigation development (through River Basin Development Authorities) got N380 billion.
The president continued: “Transportation infrastructure (roads and rail): N700 billion (300 billion for the construction and rehabilitation of critical roads and 400 billion for light rail network development in urban centres).
“Border communities infrastructure: N50 billion; military barracks accommodation – N250 billion, and military aviation – N120 billion.”
Justifying the allocations, the President said the N1 trillion for the solid minerals sector will boost economic resilience by reducing reliance on the volatile oil sector through alternative revenue streams.
Other expected benefits, he said, are regional equity – to encourage development in resource-rich, underserved areas and boost rural economies.
He anticipates value addition through support for the processing and export of minerals, thereby increasing foreign exchange earnings.
The increased BoA funding, President Tinubu said, is to boost food security, empower smallholder farmers and agribusinesses, and improve access to affordable credit.
Other targets, he said, are economic growth – to enhance agricultural productivity, support agro-industrial value chains, and increase export competitiveness to promote the export of high-value crops while reducing pressure on the naira.
The President believes N500 billion BoA’s recapitalisation will empower SMEs by providing affordable financing for innovation and entrepreneurship, creating jobs by driving industrial growth and supporting local manufacturing, thereby reducing unemployment.
Giving a breakdown of how the N1.5 trillion RHID Fund will be utilised, he said: “Irrigation development: N380 billion will strengthen Nigeria’s capacity for year-round agricultural production, ensuring water security and boosting food supply.
“Transportation infrastructure: N700 billion will modernise Nigeria’s road and rail networks, reducing costs, enhancing connectivity, and supporting economic activity.
“Border communities infrastructure: N50 billion will improve living standards and enhance the security of border regions, fostering stability and cross-border trade.
“Military barracks accommodation: N250 billion will provide modern and expanded housing for personnel, boosting morale and operational readiness
“Military aviation: N120 billion will modernize Nigeria’s aviation capabilities, ensuring the military remains responsive to emerging security challenges.”
On the increased defence budget, the President explained that the foundation of a thriving nation lies in its ability to protect its citizens, adding that no infrastructure, no innovation, and no progress can be enjoyed or sustained without security.
He stressed that the government has a constitutional obligation to secure lives and property, and military expenditure is not merely a fiscal decision but a moral imperative.
President Tinubu said: “By investing in our armed forces, we affirm our resolve to end terrorism, safeguard the dignity of our people, and create conditions for economic prosperity.
“This budget reflects not only our commitment to securing Nigeria today but to building a future where every citizen can live and thrive without fear.”
Giving a broader justification for the increased budget allocation, he said it underscores the administration’s dedication to fostering inclusive growth, addressing security challenges, and building resilience into Nigeria’s economic fabric.
He believes these investments will promote stability by addressing critical infrastructure deficits, especially in underserved regions, and strengthening national security.
President Tinubu noted that by investing in agriculture, solid minerals, and manufacturing, there will be a reduction in over-reliance on oil revenues.
The investments, he reasoned, will catalyse economic growth by enhancing infrastructure, supporting SMEs, and unlocking Nigeria’s vast economic potential.
Requesting for integration, the President added: “I urge the National Assembly to adopt and integrate these proposals into the 2025 Appropriation Bill, reflecting our shared commitment to national development.
“Kindly let me know if additional information or clarification is required.”
(The Nation)
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