Follow Us on Google
From Juliana Taiwo-Obalonye, Abuja
Minister of Budget and Economic Planning, Atiku Bagudu, provided detailed insights into the 2025 federal budget while seeing off President Bola Tinubu at the Nnamdi Azikiwe International Airport as he departed for France.
Bagudu highlighted collaborative efforts between the executive and legislative arms to enhance revenue generation for the ₦49.7 trillion budget, dubbed the “Budget of Restoration: Securing Peace, Rebuilding Prosperity.”
“You will recall Mr. President submitted a ₦49 trillion budget to the National Assembly, and legislative work commenced,” Bagudu stated. He explained that committees on appropriation, national planning, and finance worked closely with the executive to identify additional revenue streams. “In this process, it was established that institutions like the Federal Inland Revenue Service (FIRS), government-owned enterprises, and the Customs Service can generate over ₦4.5 trillion more than initially projected,” he added.
Bagudu revealed that the additional revenue would be strategically allocated to critical sectors to foster economic diversification and growth. “The President guided that this additional revenue should be used to strengthen the Bank of Agriculture, Bank of Industry, support diversification programmes through investments in solid minerals, and fund infrastructure projects,” he noted.
Other News
The 2025 budget prioritises key areas such as defence and security (₦4.91 trillion), infrastructure (₦4.06 trillion), education (₦3.52 trillion), and health (₦2.48 trillion). It also aims to reduce inflation from 34.6% to 15% and stabilise the naira exchange rate at ₦1,500 per dollar.
Bagudu also addressed amendments to the Medium-Term Expenditure Framework (MTEF), which initially supported a smaller budget size. “The MTEF that was approved earlier was for a budget of less than ₦49 trillion. Consequential amendments will follow to align with this ambitious fiscal plan,” he explained.
The 2025 budget reflects a 41.9% increase from the previous year’s ₦35 trillion allocation. However, it comes with challenges such as a projected deficit of ₦13.39 trillion, to be financed through debt (69%), loans (28%), and asset sales (2%). Despite these hurdles, Bagudu expressed confidence in the government’s ability to meet its ambitious revenue target of ₦36.35 trillion through improved tax administration and reforms in revenue-generating agencies.
“This is an ambitious but necessary budget to secure our future,” President Tinubu had remarked during its presentation in December 2024.
