By Abigail Philip David
The Federal Government has explained that President Bola Tinubu’s request to increase the 2025 budget from N49.7tn to N54.2tn aims to boost revenue for key sectors, including strengthening the Banks of Agriculture and Industry.
The Minister of Budget and Economic Planning, Atiku Bagudu, made this known to journalists on Wednesday after seeing off President Tinubu at the Nnamdi Azikiwe Airport, Abuja, before his departure to France.
In a letter dated February 3, 2025, addressed to the Speaker of the House of Representatives, Tajudeen Abbas, Tinubu sought an additional N4.5tn to the 2025 Appropriation Bill, currently under review by the National Assembly.
Bagudu explained that the budget adjustment was based on findings that government-owned enterprises, including the Nigeria Customs Service and the Federal Inland Revenue Service (FIRS), could generate more revenue than initially projected.
“You will recall that Mr. President submitted the N49tn budget to the National Assembly, and legislative work commenced. Throughout the process, the Senate Committees on Appropriation, National Planning, and Finance determined that additional revenue could be generated by urging institutions to increase their contributions,” he said.
According to him, the extra N4.5tn in revenue will be allocated to strengthening financial institutions, supporting economic diversification, and investing in the solid minerals sector and infrastructure projects.
Bagudu also noted that the Medium-Term Expenditure Framework (MTEF) would be adjusted accordingly, stating, “Even when the budget was initially submitted, the MTEF was amended. Since the approved MTEF was based on a budget of less than N49tn, it will be revised in line with the new figures.”
The increase in the 2025 budget reflects the government’s efforts to expand revenue streams and enhance economic development through strategic investments.
