In December 2024, President Bola Tinubu proposed a N49.7 trillion budget to the National Assembly. On February 5, he informed lawmakers of an additional N4.5 trillion, raising the budget to N54.9 trillion due to increased revenue from government agencies.
The budget is allocated as follows:
- N3.6 trillion for statutory transfers
- N14.3 trillion for debt servicing
- N13.06 trillion for recurrent expenses
- N23.96 trillion for capital projects
Though approval was initially set for January 30, 2025, delays in budget defense pushed the review to February. The Senate passed the budget on February 13, 2025.
According to Tinubu, additional revenue came from:
- N1.4 trillion from the Federal Inland Revenue Service
- N1.2 trillion from the Nigeria Customs Service
- N1.8 trillion from other agencies
Economists, business leaders, and lawmakers have mixed views on the budget increase. While some see it as an opportunity for growth, others warn of inflation risks.
David Etim, President of the Calabar Chamber of Commerce and Industry, believes that if the funds are used for infrastructure, they could boost economic development, create jobs, and improve business operations.
Daniel Dickson-Okezie from the Lagos Chamber of Commerce and Industry stressed the importance of capital spending over recurrent expenses, emphasizing that long-term investments lead to sustained economic growth.
Former House of Representatives member Yusuf Mohammed questioned why the additional funds were not used to fully implement the 2024 budget. He argued that unfinished projects from 2024 should have been prioritized before increasing the 2025 budget.
Some analysts worry that mismanaging the extra funds could worsen inflation and economic instability.
