The Senate and House of Representatives have rescinded their decision on the 2025 budget bill, citing allocation errors.
Despite adjustments, the total budget size remains unchanged at N54.9 trillion, ensuring fiscal targets are maintained as planned.
Prompted by Senator Adeola Olamilekan and Hon. Abubakar Kabir, the revision involved reallocation between capital and recurrent expenditures.
Revised allocations now assign N13.588 trillion to recurrent expenditure, increasing by N524 billion, reducing capital expenditure accordingly.
Initially passed on February 13, discrepancies in sectoral funding required corrections for salaries, pensions, and overhead costs.
Legislators emphasized balancing efficient spending with developmental priorities, ensuring budgetary alignment with national economic and social needs.
The corrected bill will soon be transmitted to President Bola Tinubu for assent, finalizing the legislative process.
Budget Breakdown
- Total Expenditure: N54.99 trillion
- Statutory Transfers: N3.65 trillion
- Recurrent Expenditure: N13.64 trillion
- Capital Expenditure: N23.96 trillion
- Debt Servicing: N14.32 trillion
- Fiscal Deficit: N13.08 trillion
Initially, President Tinubu proposed N49.7 trillion, later revised to N54.2 trillion following additional revenue projections.
Final adjustments reflect N54.99 trillion after comprehensive deliberations and legislative approval for national development priorities.
Sources of Additional Revenue
- Federal Inland Revenue Service (FIRS): N1.4 trillion
- Nigeria Customs Service (NCS): N1.2 trillion
- Other Government Agencies: N1.8 trillion
These funds aim to bridge fiscal gaps and finance critical infrastructure for sustained economic growth and stability.
Economic Projections
President Tinubu committed to reducing inflation from 34.6% to 15% by year-end 2025, stabilizing the economy.
Additionally, the exchange rate is projected to improve from N1,700 per dollar to N1,500, enhancing market confidence.
These targets are essential for economic recovery, ensuring long-term growth and improving Nigeria’s overall financial outlook.
