In what was a rather surprising move on Wednesday, President Bola Tinubu increased the proposed 2025 budget from the N49.7 trillion initially presented to the National Assembly to N54.2 trillion.
The President announced an increase in the proposed budget size in separate letters forwarded to the Senate and the House of Representatives.
The letter read during plenary by Senate President Godswill Akpabio, said the increase arose from N1.4 trilliion additional revenues made by the Federal Inland Revenue Service, FIRS, N1.2 trillion made by the Nigeria Customs Service, and N1.8 trilliion generated by some other Government Owned Agencies.
Akpabio consequently directed the request to the Senate Committee on Appropriation for expeditious consideration, and declared that the 2025 budget would be passed before the end of February.
Corroborating the National Assembly, Minister of Budget and National Planning, Atiku Bagudu recalled how the President submitted N49 trillion budget to the National Assembly and legislative work commenced.
He explained that the legislative work continued with interactions between the executive and the National Assembly, as well as the economic management team, which continued to interrogate all the figures.
According to Bagudu, “While the process was still going on, the Senate Committee on Appropriation, Senate Committee on National Planning and Senate Committee on Finance established that we can generate more revenue by tasking all the institutions to do more and the Federal Inland Revenue Service confirmed the ability to do more than was submitted.
“It was established that the government-owned enterprises can contribute more revenue, as well as the Customs Service.
“So additional revenue amounting to over N4.5 trillion naira was established and this was taken to the President and he guided that this additional revenue should be used to further strengthen the Bank of Agriculture, Bank of Industry, support the diversification program by putting more money in the solid minerals sector, as well as infrastructure projects.”
Commenting on the adjustment of the Medium Term Expenditure Framework, MTEF, Bagudu stated that even when the budget was submitted, the MTEF was amended.
“The MTEF that was initially approved was for a budget of less than N49 trillion, so it goes together and so the consequential amendment to the MTEF will certainly follow.”
