President Bola Ahmed Tinubu yesterday presented the 2025 appropriation bill of N49.7 trillion to a joint session of the National Assembly for consideration and approval.
The security sector took the lion’s share with N4.91 trillion in the budget estimates.
The document was tagged, “Budget of restoration: Securing peace, rebuilding prosperity.”
The president arrived at the National Assembly Complex, Abuja in company of the Vice President, Kashim Shettima; Secretary to the Government of the Federal (SGF), Senator George Akume; Chief of Staff to the President, Hon. Femi Gbajabiamila, National Chairman of the All Progressives Congress (APC), Dr Abdullahi Umar Ganduje; and state governors among others.
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In Tinubu’s proposal, infrastructure came second with N4.06 trillion, education came third with N3.52 trillion and health N2.48 trillion.
The president had on November 19, 2024, submitted the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) to the National Assembly, which was approved ahead of yesterday’s presentation.
Over N14.5 trillion has been allocated to the security sector in the last five years to improve security in the country.
Since 2021, Nigeria has consistently increased its budgetary allocations to the security sector, encompassing defence, police, and other related agencies.
In 2023, defence and security took the highest vote of N2.74 trillion (13 per cent of the total budget).
The budget for security in 2022 was N2.41 trillion. The 2021 budget was put at N840.56 billion with another N121 billion earmarked for capital projects.
A breakdown of the 2024 budget estimates also showed that the security sector received the highest allocation of N3.25 trillion, which was about 12 per cent of the total budget.
Despite these increasing allocations, Nigeria continues to face significant security challenges across various regions.
Concerns have been raised about the effectiveness of these expenditures in addressing issues such as terrorism, insurgency, banditry, and kidnapping in the country.
How to fund the 2025 budget
President Tinubu said, “In 2025, we are targeting N34.82 trillion in revenue to fund the budget.”
He said the government expenditure in the same year is projected to be N47.90 trillion, including N15.81 trillion for debt servicing.
The president said a total of N13.08 trillion or N3.89 percent of GDP, will make up the budget deficit.
“This is an ambitious but necessary budget to secure our future. The budget projects inflation will decline from the current rate of 34.6 per cent to 15 percent next year, while the exchange rate will improve from approximately 1,700 naira per US dollar to 1,500 naira, and a base crude oil production assumption of 2.06 million barrels per day (mbpd).
“These projections are based on the following observations; reduced importation of petroleum products alongside increased export of finished petroleum products, bumper harvests, driven by enhanced security, reducing reliance on food imports.”
Others are “Increased foreign exchange inflows through Foreign Portfolio Investments, higher crude oil output and exports, coupled with a substantial reduction in upstream oil and gas production costs.”
What budget seeks to achieve
President Tinubu said the 2025 budget seeks to restore macro-economic stability, enhance the business environment, foster inclusive growth, employment, and poverty reduction.
The president added that it seeks to promote equitable income distribution and human capital development.
“Our budgetary allocations reflect the administration’s strategic priorities, especially in the implementation of the Renewed Hope Agenda and its developmental objectives.”
2024 budget to be extended to June – Sen. Akpabio
Meanwhile, the Senate President, Godswill Akpabio has disclosed that the lifespan of the 2024 budget would be extended to June 30, 2025.
Akpabio stated this while welcoming President Tinubu and other top government officials to the National Assembly.
Akpabio said, “Your Excellency, we have noted the 2024 budget performances of 50% for capital expenditure and 48% for recurrent expenditure respectively.
“Given these great achievements, we have deemed it necessary to extend the life of the 2024 budget to June 30, 2025.
“The enabling law for this extension has already been put in place by this patriotic assembly, as a testament to our appreciation for the great performance of the budget, ensuring we build upon your momentum.
“I assure Your Excellency of a swift evaluation of the 2025 Appropriation Bills. As expected, we will ensure that due process is followed in passing these bills.”
Allocations based on ministries
Other allocations are Ministry of Power (N2.08 trillion); Police Affairs (N1.27 trillions); Interior (N1.13 trillion), Presidency (N465.17 billion); National Assembly (N344.85 billion); FCT (N486.07 billion); Humanitarian Affairs (N337.31 billion); Aviation and Aerospace (N105.95 billion).
Also, the Ministry of Livestock has N11.8 billion in the estimates; Marine and Blue Economy (N38.32 billion), Ministry of Youth Development (N449.27 billion); and the Independent National Electoral Commission (INEC) N40 billion.
Budget anti-people – PDP
But reacting, the Peoples Democratic Party (PDP) described the 2025 budget estimates as anti-people.
The main opposition party said if implemented as presented, it would plunge the country into “Insecurity, poverty and hopelessness.”
Debo Ologunagba, National Publicity Secretary of the party in a statement yesterday said, “The budget as presented further confirms the insensitivity of the APC administration towards the plight of Nigerians as it made no meaningful provisions and investments for critical productive sectors of agriculture and food production, electricity, petroleum and gas, Small and medium scale enterprises, which are the real drivers of the national economy.”
The PDP said the budget address sounded more like a “Campaign rhetoric laced with unsubstantiated economic statistics, false promises and conjured performance claims without clear-cut operable steps and mechanisms to address insecurity, resuscitate the economy, revamp ailing industries, shore up food production, increase the value of the Naira, reduce overall cost of living, create jobs for our youths and guarantee better living standard for citizens.”
The party said the president dashed the hope of millions of suffering Nigerians who expected him to use the 2025 budget to make strategic provisions that would reduce the cost of fuel, food items, electricity tariff and other essential goods and services that have direct bearing on the wellbeing of the people
The opposition party also asked the National Assembly not to pass the 2025 budget as presented, but activate its legislative powers as guaranteed under Sections 80, 81 and 82 of the 1999 Constitution to rejig the budget and make provisions that are critical and pivotal to the growth of the economy and the welfare of Nigerians.
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