N54tn budget: Experts divided over raise, FG adds N4.5tn agric, infrastructure funds

Some players in the Nigerian economy have shared different views following the decision of the Federal Government to increase the 2025 Appropriation Bill from N49.7tn to N54.2tn on the back of additional revenues generated by key government agencies.

On Wednesday, letters from President Bola Tinubu were read on the floor of the Senate indicating the adjustments in the yet-to-be-passed budget.

The President conveyed the budget adjustment in separate letters sent to both the Senate and the House of Representatives, which were read during Wednesday’s plenary by the Senate President, Godswill Akpabio.

Tinubu presented a N49.7tn budget proposal, themed ‘Budget of Restoration: Securing Peace, Rebuilding Prosperity,’ to the National Assembly in November.

The Federal Government projects a total revenue of N36.35tn for 2025, anchored on improved non-oil revenue generation. This includes expanded tax collections, customs duties, and independent revenue from government-owned enterprises, alongside oil revenue projections based on a crude oil benchmark of $75 per barrel, a production target of 2.06 million barrels per day, and an exchange rate of N1,500 per USD.

The total expenditure of N49.7tn includes significant allocations to critical sectors while targeting a fiscal deficit of N13.39tn (3.96 per cent of GDP). This deficit will be financed through domestic and external borrowings as well as innovative public-private partnership arrangements.

Tinubu said the increase was driven by N1.4tn in additional revenue from the Federal Inland Revenue Service, N1.2tn from the Nigeria Customs Service, and N1.8tn generated by other government agencies. Following the reading of the letter, Akpabio referred the President’s request to the Senate Committee on Appropriations for urgent consideration.