On 18 December 2024, President Bola Ahmed Tinubu presented the 2025 Budget dubbed the 2025 Budget of Restoration: Securing Peace, Rebuilding Prosperity, totalling N49.74 trillion, a 41.9% increase from the previous year.
However, in dollar terms, the budget contracted by 23.22%, dropping from $36.7 billion in 2024 to $28.18 billion in 2025.
As the National Assembly begins the 2025 budget defence proposed by the executive, experts, civil society Organisations, and the private sector have expressed concerns over the 2024 budget performance, sectoral allocations, and the federal government’s 15% inflation projection for the 2025 fiscal year as unrealistic.
In a press release by BudgIT on Thursday, the civil society organisation questioned the Federal Government’s projection to reduce inflation by 15% in 2025 when the Federal Government has not created a clear road map for reducing food and fuel prices which are the main drivers of the Nigeria’s inflation.
“ The government’s inflation projection of 15% in the 2025 fiscal year appears grossly unrealistic, considering that inflation, which stood at 34.6% as of November 2024, has been driven not only by monetary factors such as exchange rate and money supply but also by the constant increase in food and energy prices, both of which the government has not created a clear road map in resolving in the short term.
BudgIT also cautioned the National Assembly against budgetary insertions given to MDAs that do not have the capacity or mandate to implement them, as this could derail the prioritisation of key areas in the budget. Many inserted projects usually lack proper conceptualization, design, and cost estimation, undermining their effectiveness and feasibility. The omission of budget line items by some government institutions and the omission of funding for the Lagos Calabar Coastal road were also highlighted.
“Also we have observed that the 2025 proposed budget breakdown submitted to the national assembly for review and approval and published on the Budget Office website omits the breakdown of some MDAs, commissions, and Councils, such as the National Judicial Council (N341.63 billion), and TETFUND (N940.05 billion).
“The budgets of over 60 government-owned (GOEs), including the Nigeria Ports Authority, Nigeria Customs Service, Nigerian Maritime Administration and Safety Agency (NIMASA), etc., were conspicuously absent from the 2025 proposed budget.
In the same vein, BudgIT also faulted the combined allocation of N2.49 trillion to five regional development commissions for personnel costs in total contrast to the current administration’s drive to reduce the cost of governance.
“Lumping development commission budgets under personnel costs raises concerns about transparency and accountability. It hinders proper scrutiny of how these funds are utilized and whether they effectively achieve their intended development objectives.
The budget is the single most important fiscal policy document of any government and as the National Assembly commences the 2025 budget defence, experts and civil society organisations have called on relevant stakeholders and Nigerians to continue to engage with relevant government agencies on the government fiscal and monetary policies as Nigerians eagerly await the passage of the 2025 budget by the National Assembly.
