The Nigerian government says the additional N4.5 trillion allocated to the 2025 budget will be utilised to enhance the Bank of Agriculture, the Bank of Industry, and to support the government’s diversification initiatives in the solid minerals sector as well as infrastructure projects.
The Minister of Budget and Economic Planning, Abubakar Bagudu made this known to State House Correspondents on Wednesday while speaking on the increase in the proposed 2025 budget from N49.7trn to N54.2trn.
The Minister who established that government owned institutions will be tasked to do more to improve generated revenue confirmed that agencies such as the Federal Inland Revenue Service and the customs service can do more than earlier submitted.
Bagudu stated that the President raised the 2025 appropriation bill following productive legislative interactions between the executive ,the national assembly and the Presidential economic management team on earlier submitted figures.
“You will recall Mr President submitted 49 trillion naira budget to the national assembly and legislative work commenced.
“The legislative work continued with interactions between the executive and the national assembly and the national assembly and the economic management team continued to interrogative all figures.
” In that process, the senate committee on appropriation, senate committee on national planning, 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. Equally, it was establish that the government-owned enterprises can contribute more revenue, as well the customs service.
“So additional revenue amounting to over 4.5 trillion naira was established and this was taken to the president and 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.” Bagudu added.
The Minister of Budget further disclosed that the adjustment in the 2025 budget proposals will also lead to consequential amendments to the initially approved 2025-2027, Medium Term Expenditure Framework MTEF
“Recall that even when the budget was submitted, MTEF was amended. The MTEF that was initially approved was for a budget of less than 49 trillion naira so it goes together and so the consequential amendment to the MTEF will certainly follow.
President Tinubu on Wednesday raised the proposed 2025 budget from ₦49.7 trillion to ₦54.2 trillion, citing additional revenues generated by key government agencies.
The President informed the Senate and the House of Representatives in separate letters that the increase was driven by ₦1.4 trillion in additional revenue from the Federal Inland Revenue Service (FIRS), ₦1.2 trillion from the Nigeria Customs Service (NCS), and ₦1.8 trillion generated by other government-owned agencies.
It would be recalled that President Tinubu in December 2024, presented a budget of N49.7 trillion for the 2025 fiscal year to the National Assembly.
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