The Federal Government has explained why President Bola Tinubu proposed an increase in the 2025 budget from N49.7 trillion to N54.2 trillion. The additional funds will be used to boost revenue generation and support key sectors such as banking, solid minerals, and infrastructure.
The Minister of Budget and Economic Planning, Atiku Bagudu, shared these details with journalists in Abuja after President Tinubu departed for France. Bagudu stated that the government identified new sources of revenue, including contributions from government-owned enterprises and the Nigeria Customs Service.
In a letter dated February 3, 2025, addressed to the Speaker of the House of Representatives, Tajudeen Abbas, President Tinubu requested an additional N4.5 trillion to be added to the 2025 Appropriation Bill, which is currently under review by the National Assembly.
Bagudu noted that during legislative discussions on the budget, the Senate Committees on Appropriation, National Planning, and Finance found that the Federal Inland Revenue Service and other agencies could generate more income than initially estimated.
He said: “You will recall, Mr President submitted the N49tn budget to the National Assembly, and legislative work commenced.
“The legislative work continued with interactions between the executive and the national assembly. The National Assembly and the Economic Management Team continued to interrogate all figures.
“In that process, 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.”
He continued, “Equally, it was established that the government-owned enterprises, as well as the Customs Service, could contribute more revenue.
“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 further to strengthen the Bank of Agriculture, Bank of Industry, support the diversification program by putting more money in the solid minerals sector and infrastructure projects.”
On the adjustment of the Medium-Term Expenditure Framework, Senator Bagudu said: “Recall that even when the budget was submitted, MTEF was amended.
“The MTEF that was initially approved was for a budget of less than N49tn, so it goes together and so the consequential amendment to the MTEF will certainly follow.”
