The minister of budget and economic planning, Mr Atiku Bagudu, said the increase of the 2025 budget from N49.7 trillion to N54.2 trillion was meant to wheel more revenue to strengthen the Bank of Agriculture, Bank of Industry as well as support the diversification programme by putting more money in the solid minerals sector and infrastructure projects.
Recall that President Bola Tinubu had written a letter to the national assembly requesting the increase.
In the letter entitled ‘2025 Appropriation Bill: Allocation of Additional Revenue of N4.53trillion’ and read at the plenary by the senate president, Mr Godswill Akpabio, the president said the increase was driven by additional revenue from the Federal Inland Revenue Service (FIRS), the Nigeria Customs Service (NCS) and government-owned agencies.
“I am writing to inform you of the availability of additional revenue amounting to N4.5 trillion 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.
“This additional revenue sourced from key agencies represents a pivotal opportunity to address Nigeria’s critical challenges and advance her development agenda.
‘’This additional revenue, sourced from key agencies, represents a pivotal opportunity to address Nigeria’s critical challenges and advance her development agenda: Government-Owned Enterprises (GOES): N1,823,879,970,637; Federal Inland Revenue Service, FIRS, N1,497,600,000,000; (Federal Government’s 52% share of the increase in revenue from N22.1 trillion to N25.1 trillion_
“Nigerian Customs Service (NCS): N1, 209,000,000,000 (federal government’s 52% 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 will increase from N49.7 trillion to N54.2 trillion, demonstrating our commitment to inclusive growth and security.
“Proposed allocation of additional revenue: 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.
“Recapitalization 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) N500 billion 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. Allocated as follows: Irrigation Development (through River Basin Development Authorities): N380 billion.
“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 centers), Border Communities Infrastructure: N50 billion, Military Barracks Accommodation: N250 billion, and Military Aviation: N120 billion,’’ the letter read in part.
Speaking with journalists at the Nnamdi Azikiwe International Airport yesterday, Bagudu said the adjustment in the budget was made when it was established that the government-owned enterprises including the NCS could contribute more revenue.
He said the president had earlier proposed N49 trillion budget to the national assembly for the 2025 fiscal year.
The minister said while the legislative work commenced the senate committees on appropriation, national planning and finance established that the government could generate more revenue by tasking all the institutions to do more.
The FIRS, he said, confirmed the ability to do more than was submitted.
“Equally, it was established that the government-owned enterprises can contribute more revenue, as well the NCS.
So additional revenue amounting to over N4.5 trillion naira was established and this was taken to the president,” he added.
