The Nigerian Senate has passed the 2025 Appropriation Bill, approving an unprecedented national budget of ₦54.99 trillion. This figure represents a significant increase from the ₦49.7 trillion initially proposed by President Bola Tinubu, reflecting adjustments made to accommodate additional revenue projections.
The budget encompasses allocations for statutory transfers, recurrent and capital expenditures, and debt servicing, highlighting the government’s commitment to economic growth, infrastructure development, and fiscal stability.
Despite concerns about Nigeria’s rising debt, lawmakers argue that the revised budget will help address key national priorities.
The approved budget is structured to balance fiscal responsibility with developmental needs. Statutory transfers have been set at ₦3.65 trillion, while recurrent (non-debt) expenditure will account for ₦13.64 trillion.
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Capital expenditure, which focuses on infrastructure and development projects, receives ₦23.96 trillion, signaling a strong push for economic expansion.
However, debt servicing remains a significant component, with ₦14.32 trillion allocated to managing Nigeria’s financial obligations.
The fiscal deficit stands at ₦13.08 trillion, translating to a 1.52% deficit-to-GDP ratio. While some experts worry about the country’s growing debt profile, government officials argue that increased revenue projections will help offset these concerns.
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The initial budget proposal was revised upward to ₦54.2 trillion on February 5, 2024, following revenue reassessments from key government agencies. After thorough deliberations, the National Assembly further adjusted the figure to the final ₦54.99 trillion.
According to Senate President Godswill Akpabio, the increase is justified by additional revenue inflows expected from key institutions.
These include the Federal Inland Revenue Service (FIRS), which is projected to contribute ₦1.4 trillion, the Nigeria Customs Service (NCS) with ₦1.2 trillion, and other government agencies expected to generate ₦1.8 trillion.
The additional funds are earmarked to bridge fiscal gaps and finance critical infrastructure projects essential for national development.
With the House of Representatives having earlier approved the budget, the Senate’s confirmation marks the final legislative step before the bill is sent to President Tinubu for assent. Once signed into law, the budget will shape Nigeria’s economic policies for 2025, influencing everything from public sector wages to national infrastructure projects.
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