President Bola Tinubu has revised the 2025 budget upward from N49.7 trillion to N54.2 trillion following additional revenue inflows from key government agencies.
The adjustment was communicated to the National Assembly in separate letters addressed to the Senate and the House of Representatives.
The letters, read by Senate President Godswill Akpabio during plenary, outlined that the budget expansion was driven by revenue surpluses recorded by government institutions, including:
- N1.4 trillion from the Federal Inland Revenue Service (FIRS)
- N1.2 trillion from the Nigeria Customs Service (NCS)
- N1.8 trillion from other government-owned agencies
These additional funds have provided the government with more fiscal flexibility, allowing for an increase in budgetary allocations toward critical national priorities.
Legislative Review and Next Steps
Following the budget revision, Senate President Akpabio referred the President’s request to the Senate Committee on Appropriations for urgent deliberation. Lawmakers have assured that the budget will be finalized and passed before the end of February, ensuring a seamless transition into the new fiscal year.
With the National Assembly expected to fast-track the approval process, attention will now shift to how the additional funds will be allocated across key sectors, including infrastructure, social services, and economic development.
Economic Implications and Fiscal Concerns
The revised budget signals a more robust fiscal framework, potentially boosting investor confidence and reinforcing economic stability. Analysts suggest that increased allocations could lead to improved service delivery and accelerated growth in critical sectors.
However, concerns over Nigeria’s rising debt obligations persist. Some financial analysts warn that the government’s debt service costs have escalated sharply, from N8 trillion in 2024 to N16 trillion in 2025—a development described as a major red flag.
“The fiscal regime [under President Bola Tinubu] has a red flag. And the red flag is the fact that debt service has increased from N8 trillion last year to N16 trillion. So, that is a red flag because the debt service at N16 trillion is more than Defence, Security, Infrastructure, Health, and Education combined which is N14 trillion,” Tilewa Adebayo, CEO of CFG Advisory, stated.
Inflation and Exchange Rate Projections
During the budget presentation, President Tinubu reaffirmed his administration’s commitment to curbing inflation and strengthening the naira.
“The 2025 budget projects that inflation will decline significantly from the current 34.6% to 15%,” Tinubu stated.
Also, the President assured that his administration is working towards stabilizing the exchange rate.
“Concurrently, the exchange rate will improve from approximately N1,700 per dollar to N1,500. These projections are critical for stabilizing the economy and ensuring sustainable growth,” Tinubu noted.
Outlook: Growth or Fiscal Risks?
While the revised budget aims to drive economic expansion, experts caution that debt sustainability and fiscal discipline will be crucial. The government’s ability to efficiently manage the additional revenue and ensure strategic spending will determine the overall impact on economic growth.
As the Senate Committee on Appropriations reviews the revised budget, stakeholders will be watching closely to see how the government navigates spending priorities, debt servicing, and economic stability in the months ahead.
