Why Tinubu Increased the 2025 Budget from N49.7 Trillion to N54.2 Trillion – Bagudu

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Minister of Budget and National Planning, Atiku Bagudu, has explained the rationale behind President Bola Tinubu’s decision to increase the proposed 2025 budget from N49.7 trillion to N54.2 trillion. The adjustment, announced on Wednesday, followed the discovery of additional revenues generated by key government agencies. Bagudu revealed that the Federal Inland Revenue Service (FIRS) contributed an extra N1.4 trillion, the Nigeria Customs Service added N1.2 trillion, and other government-owned enterprises generated N1.8 trillion, bringing the total additional revenue to over N4.5 trillion.  

Bagudu detailed how the budget revision process unfolded, noting that the initial N49.7 trillion proposal was submitted to the National Assembly, after which legislative work began. During consultations between the executive, the National Assembly, and the economic management team, it was determined that government agencies could generate more revenue than initially projected. The Senate Committee on Appropriation, Senate Committee on National Planning, and Senate Committee on Finance played key roles in identifying these additional revenue streams.  

President Tinubu directed that the extra funds be allocated to critical sectors, including the Bank of Agriculture, Bank of Industry, solid minerals development, and infrastructure projects. This move aims to strengthen economic diversification, reduce reliance on oil, and stimulate growth in key areas of the economy. Bagudu also addressed the adjustment of the Medium-Term Expenditure Framework (MTEF), which was initially based on a budget of less than N49 trillion. He confirmed that the MTEF would be amended to reflect the revised budget figures.  

The budget increase underscores the administration’s commitment to maximizing revenue generation and investing in priority sectors. However, it also raises questions about the efficiency of revenue collection and the transparency of budget allocations. As the National Assembly works to pass the budget before the end of February, the focus will be on ensuring that the additional funds are effectively utilized to drive sustainable development and address Nigeria’s pressing economic challenges. 

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