The National Assembly has officially passed the ₦54.99 trillion 2025 Appropriation Bill, cementing what is arguably one of Nigeria’s most ambitious and controversial budgets. The Senate and House of Representatives separately approved the bill, which is expected to shape the country’s financial sector for the coming year.
A breakdown of the budget allocation is staggering—₦3.645 trillion for statutory transfers, a jaw-dropping ₦14.317 trillion for debt servicing, ₦13.64 trillion for recurrent expenditure, and ₦23.963 trillion for capital expenditure (development fund). But the real concern lies in the fiscal deficit, which stands at ₦13.08 trillion, while the Deficit-to-Gross Domestic Product (GDP) ratio is pegged at 1.52%.
Tinubu’s Last-Minute Budget Hike Sparks Questions
Just last week, President Bola Tinubu unexpectedly increased the proposed budget from an initial ₦49.7 trillion to ₦54.2 trillion, seeking urgent approval from the National Assembly. This move has raised eyebrows, with critics questioning whether the government has a concrete revenue plan to back up the excessive spending or if Nigeria is simply digging itself deeper into debt.
Lawmakers Warn Against Late Budget Submissions
During the deliberations, Abubakar Bichi, Chairman of the House Committee on Appropriations, presented the bill for consideration. He revealed that the committee engaged in discussions with the Presidential Economic Planning team to assess revenue projections and expenditure.
Bichi admitted that the 2025 budget was submitted later than expected, comparing it to the 2024 budget cycle. He urged the executive arm of government to submit subsequent budgets at least three months before the next financial year begins to maintain the January-to-December budget cycle.
While the passage of the budget is a significant step, the real challenge lies ahead, how will the government finance it? With Nigeria’s rising debt profile and economic uncertainty, many are skeptical about whether this budget will bring the much-needed relief or simply add to the country’s financial woes.
