Tinubu Seeks N54.2 Trillion Budget for 2025, Citing Additional Revenue from Key Agencies
In a significant move to bolster Nigeria’s economic growth, President Bola Tinubu has requested the National Assembly to increase the proposed 2025 budget to N54.2 trillion. This represents an N4.5 trillion hike from his initial proposal of N49.7 trillion, which he presented in December 2024.
According to a letter obtained by TheCable on Thursday, Tinubu attributed the budget increase to additional revenue generated by three key government agencies: Government-Owned Enterprises (GOEs), the Federal Inland Revenue Service (FIRS), and the Nigerian Customs Service (NCS).
The president revealed that these agencies collectively generated an extra N4.53 trillion, allowing for a larger budget to address pressing national priorities. The revenue breakdown is as follows:
- Government-Owned Enterprises (GOEs): N1.82 trillion
- Federal Inland Revenue Service (FIRS): N1.49 trillion (representing the federal government’s 52% share of increased revenue from N22.1 trillion to N25.1 trillion)
- Nigerian Customs Service (NCS): N1.2 trillion (federal government’s 52% share of the rise in revenue from N6.5 trillion to N9 trillion)
“With this additional revenue, the total budget size for 2025 will increase from N49.7 trillion to N54.2 trillion, demonstrating our commitment to inclusive growth and security,” Tinubu stated.
In response to calls for greater investment in economic diversification, the government has increased the budget allocation for the solid minerals sector from N539.7 billion to N1 trillion, marking an additional N460.3 billion.
The decision comes after the National Assembly’s joint committee on solid minerals rejected an earlier proposal, deeming it inadequate. Tinubu emphasized that the increased funding will “unlock the potential of Nigeria’s vast solid mineral resources” and create alternative revenue streams beyond the volatile oil sector.
To enhance food security and empower smallholder farmers, Tinubu has proposed an additional N1.5 trillion for the recapitalization of the Bank of Agriculture (BoA). This move is aimed at improving access to affordable credit for farmers, boosting agricultural productivity, and promoting the export of high-value crops, ultimately strengthening the naira.
Minister of Agriculture and Food Security, Abubakar Kyari, confirmed that the recapitalization process will be finalized by the end of Q1 2025, addressing long-standing challenges in commercial agriculture financing.
As part of efforts to strengthen Nigeria’s manufacturing sector and support small and medium enterprises (SMEs), the revised budget includes a N500 billion allocation for the recapitalization of the Bank of Industry (BoI). Tinubu underscored the importance of this investment in reducing dependence on imports and driving local production.
The revised budget also prioritizes infrastructure, with a total of N1.5 trillion earmarked for various projects, including:
- Irrigation Development (via River Basin Development Authorities): N380 billion
- Border Communities Infrastructure: N50 billion
- Military Barracks Accommodation: N250 billion
- Military Aviation: N120 billion, Road and Rail Transport Infrastructure: N700 billion
- N300 billion for road construction and rehabilitation
- N400 billion for light rail network development in urban centres
Tinubu highlighted that these allocations will “promote stability, diversify revenue, and catalyze economic growth.”
The president urged the National Assembly to adopt and integrate these budgetary changes into the 2025 appropriation bill, emphasizing that the additional investments will drive economic expansion, enhance national security, and improve infrastructure across the country.
