The Nigerian Senate has officially approved the N54.9 trillion budget for the year 2025 after careful review and discussions. This budget, also known as the Appropriation Bill, is the plan that outlines how the government will generate and spend money for the year......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>
Breakdown of the Budget
Here’s how the money will be allocated:
- Total Budget: N54.9 trillion
- Recurrent Expenditure: N13.6 trillion (for salaries, running costs, and government operations)
- Capital Expenditure: N23.9 trillion (for roads, schools, hospitals, and other infrastructure)
- Debt Servicing: N14.3 trillion (to pay back loans Nigeria owes)
- Statutory Transfers: N3.6 trillion (for organizations like INEC, National Assembly, and others)
- Fiscal Deficit: N13.8 trillion (this is the amount the government is spending beyond its revenue)
- Deficit as a percentage of GDP: 1.52%
How the Budget Increased from N49.7 Trillion to N54.9 Trillion
Initially, the government proposed a budget of N49.7 trillion, but after discussions, the National Assembly increased it by N5.2 trillion. According to Senator Solomon Adeola, who presented the report, the increase came after a series of meetings between the Senate and the President’s economic team.
The additional funds were generated from some revenue-generating agencies, and part of the extra money will be used for:
- Procuring vaccines to boost healthcare.
- Additional funding for government agencies that needed more money to operate effectively.
- Financing key projects that were underfunded in the original proposal.
Senator Adeola emphasized that the Senate worked closely with the executive arm of government to ensure the additional funds were properly allocated to critical projects.
Call for Timely Budget Presentation
The 2025 budget was presented later than expected, which could cause delays in implementation. To avoid this in the future, the Senator urged the President to submit the budget at least three months before the next financial year begins. This will help Nigeria stick to the January-December budget cycle, which makes planning and implementation easier.