The senate increased the budget from N54.2 trillion, proposed by President Bola Tinubu, to N54.9 trillion, an increase of about N750 billion.
The senate has passed the 2025 appropriation bill, increasing the figure from N54.2 trillion proposed by President Bola Tinubu, to N54.99 trillion. The budget size was increased by about N750 billion.
This comes two months after the budget was presented to the joint sitting of the National Assembly on 18th December, 2024 by President Tinubu.
The bill was passed for third reading after the chairman, senate committee on appropriation, Sen. Solomon Olamilekan, presented his committee’s report for consideration during Thursday’s plenary.
READ ALSO: 2025 Budget: Senate targets passage by February 13
Key highlights of the 2025 budget
I. Aggregate Expenditure – N54.99 trillion
Il. Statutory Transfers – N3.6 trillion
III. Recurrent Expenditure – N13.06 trillion
IV. Capital Expenditure – N23.9 trillion
V. Debt Servicing – N14.3 trillion
VI. Fiscal Deficit – N13.08 trillion
VII. Deficit/GDP – 1.52 percent
Legislative process leading to budget passage
Parliament Reports recalls that following the presentation of the budget, the senate debated the general principles of the bill on Thursday, 19th December, 2024. The bill was read the second time and referred to the committee on appropriations for further legislative action.
Thereafter, the committee referred the estimates of the various MDAs to sub-committees that have jurisdiction over them.
Meanwhile, President Tinubu on February 5, 2025, raised the proposed 2025 budget from ₦49.7 trillion to ₦54.2 trillion, attributing the increase to additional revenues generated by key government agencies. The President communicated the budget adjustment in separate letters to the Senate and the House of Representatives.
The President detailed how the extra revenue will be spent, stating, “Solid Minerals will get ₦1 trillion; Bank of Agriculture Recapitalization, ₦1.5 trillion; Bank of Industry Recapitalization, ₦500 billion; Critical Infrastructure, ₦1.5 trillion; Military Barracks Accommodation for N250 billion; Military Aviation for N120 billion, Irrigation Development: N380 billion; Transportation Infrastructure: N700 billion; Border Communities Infrastructure: N50 billion.”
The initial proposal of the Executive proposal was N49.7 trillion of which N4.4 trillion was for Statutory Transfers, N16.3 trillion was for Debt Service, N14.1 trillion was for Recurrent (Non-Debt) Expenditure, while the sum of N14.8 trillion for contribution to the Development Fund for Capital Expenditure for the year ending on the 31st December, 2025.
Additional Revenue Sources Identified
The appropriation and finance committees identified new revenue streams to accommodate the budget increase. These sources include:
1. Government-Owned Enterprises (GOEs) – N1.8 trillion
2. Federal Inland Revenue Service (FIRS) – N1.4 trillion (Federal Government’s 52 percent share of the increase in revenue from N22.1 trillion to N25.1 trillion after the deduction of cost of collection).
3. Nigerian Customs Service (NCS) – N1.2 trillion (Federal Government’s share of the increase in revenue from A6.5 trillion to N9.0 trillion after the deduction of cost of collection).
USAID shutdown and budget adjustments
Presenting the report of the committee, Sen. Olamilekan stated that the recent action by the United States Government to suspend further intervention in the Nigerian health sector through provision of vaccines and drugs for malaria, Polio, HIV and Tuberculosis through the United States Agency for International Development (USAID) will have adverse effects on Nigerians affected by such diseases.
According to him, it was on this note, that the President proactively made a new provision of $200m which is equivalent to N300bn, in the service wide votes to fill the gap created by the United States (US) Government’s suspension of intervention to Nigerian health sector, to proactively address the above-mentioned health challenges which are currently being suffered by countries like Uganda and others.
He stressed that some critical agencies of government forwarded genuine requests to President Tinubu for additional funding.
He said, “After thorough examination by the Joint Appropriations Committee, additional funds were provided to the agencies which include: Independent National Electoral Commission (INEC), Nigerian Financial Intelligence Unit (NFIU), Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices and Other Offences Commission (ICPC), National Judicial Council (NJC), National Drug Law Enforcement Agency (NDLEA), Department of State Service (DSS), Ministry of Foreign Affairs and the Armed Forces among others.”
The debate
Sen. Victor Umeh (LP, Anambra central) expressed disappointment that the Port Harcourt-Enugu-Maiduguri Eastern railway line was omitted from the budget.
He recalled that he had previously co-sponsored a motion with 35 senators urging the federal government to construct a standard gauge rail from Port Harcourt to Maiduguri, which was unanimously adopted. However, no funds were allocated for the project in the 2025 budget.
“There is no provision of funds for construction of standard gauge rail from South-South through South-East, North-Central, North-West, and North-East. I was hoping that this bill would incorporate the needs to build that railway.
“So I’m standing again to say that even though we are now at the point of passing this budget, the Senate should take its appropriate note on this.”
In his response, the President of the Senate, Godswill Akpabio assured Umeh that the project’s exclusion would be addressed.
He said, “I assure you that this is not the last budget that the federal government will make. The issue you raised affects up to three zones. South South, South East and North East are involved.
“We will take it up with the executive so that even if it comes with the Appropriation Act, it will still be aired out.”
Final resolution and budget passage
Following deliberations, the senate dissolved into the committee of supply to consider details of the 2025 budget.
Shortly after the review, Senate President Godswill Akpabio called for a voice vote, and the majority voted in favour, officially passing the ₦54.99 trillion 2025 budget.
