FG targets diversification, infrastructure, security in N4.53tr review of 2025 budget
• As investments in solid minerals is expected to expand Nigeria’s revenue base and reduce dependent on oil.
President Bola Ahmed Tinubu yesterday proposed an additional allocation of N4.53 trillion to the 2025 Appropriation Bill, with a view to bolstering economic diversification, infrastructure development, and national security.
The addition raises the total budget size from N49.7 trillion to N54.2 trillion.
In separate letters to both chambers of the National Assembly, Tinubu detailed the adjustment, which was read during plenary by Senate President Godswill Akpabio.
The increase, the President explained, stems from additional revenues generated by the Federal Inland Revenue Service (FIRS) (N1.4 trillion), the Nigeria Customs Service (NCS) (N1.2 trillion), and other Government-Owned Enterprises (GOEs) (N1.8 trillion).
Akpabio referred the letter to the Senate Committee on Appropriations, directing them to expedite the necessary budgetary adjustments.
He assured that the 2025 budget would be passed before the end of February to ensure smooth government operations.
Key allocations showed that the solid minerals sector received N1 trillion, targeted at unlocking Nigeria’s vast mineral resources, reducing dependence on oil, and generating alternative revenue streams.
The Bank of Agriculture (BoA) recapitalisation was allocated N1.5 trillion to enhance food security, empower smallholder farmers, and promote agro-industrial value chains.
Similarly, the Bank of Industry (BoI) recapitalisation was earmarked N500 billion to support small and medium enterprises (SMEs), boost local manufacturing, and reduce reliance on imports.
Infrastructure development was allocated N1.5 trillion, while irrigation development received N380 billion to support year-round farming and ensure water security.
For transportation infrastructure, N700 billion was proposed, including N300 billion for road projects and N400 billion for urban rail networks. Border communities’ infrastructure was allocated N50 billion to improve security and foster economic development.
On security, N250 billion was earmarked for military barracks accommodation to improve housing for security personnel, while N120 billion was proposed for military aviation to modernise Nigeria’s air capabilities.
President Tinubu emphasised that national security underpins economic progress, describing investments in the armed forces as both a moral and economic necessity. He asserted that enhanced military capabilities and infrastructure are vital for countering terrorism and ensuring the safety of citizens.
“Investments in solid minerals will expand Nigeria’s revenue base and reduce reliance on oil. Recapitalisation of the Bank of Agriculture (BoA) and Bank of Industry (BoI) will enhance agriculture and industrial production, boost exports, and create jobs,” the President stated.
He added: “Improved irrigation systems will support year-round farming and food production. Road and rail projects will lower transportation costs and improve connectivity, while investments in border communities and military infrastructure will bolster national security and living conditions for security personnel.”
Tinubu urged the National Assembly to incorporate the proposals into the 2025 budget, highlighting their alignment with Nigeria’s goals of economic growth, diversification, and enhanced security.
Also, Minister of Budget and Economic Planning, Atiku Bagudu, spoke to journalists after seeing off President Tinubu at the Nnamdi Azikiwe International Airport, Abuja, as he departed for France.
“You will recall Mr President submitted a N49 trillion budget to the National Assembly, and legislative work commenced. During this process, continuous interactions between the executive and the National Assembly led to a review of revenue estimates,” Bagudu said.
He added: “The Senate Committees on Appropriation, National Planning, and Finance established that we could generate more revenue by tasking institutions to do more. The Federal Inland Revenue Service confirmed its capacity to exceed the initial projections, while government-owned enterprises and the Customs Service were also identified as capable of contributing additional funds.
“This additional revenue, amounting to over N4.5 trillion, was presented to the President, who approved its allocation to strengthen the Bank of Agriculture (BoA) and the Bank of Industry (BoI), support economic diversification through investment in the solid minerals sector, and fund critical infrastructure projects.”
Addressing the adjustment to the Medium-Term Expenditure Framework (MTEF), Bagudu said it was a natural consequence of the budget review. “Even when the budget was initially submitted, the MTEF was amended. The MTEF approved earlier was for a budget of less than N49 trillion. Therefore, a consequential amendment to the MTEF will certainly follow,” he noted.
MEANWHILE, Vice President Kashim Shettima yesterday inaugurated the Supervisory Board of the Debt Management Office (DMO) at the Presidential Villa, Abuja, as part of the Federal Government’s efforts to bolster fiscal and monetary policy coordination while ensuring long-term debt sustainability.
Shettima, who chairs the board, urged members to adopt a more strategic approach to managing public debt, underscoring the importance of using debt as a tool for infrastructure development, economic growth, and poverty alleviation.
“With prudent management, debt can be transformed into an asset for economic growth and poverty reduction. Our goal must be to formulate policies, regulations, and guidelines for the DMO, with a view to achieving long-term debt sustainability for our country,” he said.
The Vice President highlighted the administration’s commitment to fiscal discipline and economic stability, noting that borrowing, when judiciously applied, could catalyse growth rather than becoming a liability.
He praised President Tinubu’s economic reforms, describing the President’s efforts as critical to stabilising the nation’s economy. He also commended the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the DMO leadership for their diligent management of Nigeria’s sovereign debt portfolio.
Shettima also noted Nigeria’s recent success in the international financial market, referencing the over-subscribed $2.2 billion double-tranche Eurobond issuance as a testament to investor confidence in the country.
The board members include Wale Edun (Vice Chairman), Lateef Fagbemi (Attorney General of the Federation and Minister of Justice), Dr Tope Fasua (Special Adviser to the President on Economic Matters), Olayemi Cardoso (CBN Governor), Dr Oluwatoyin Sakirat Madein (Accountant-General of the Federation), and Patience Oniha (DMO Director-General and Secretary to the board).
Relatedly, an economic expert and CEO of Economic Associates, Dr Ayo Teriba, has advocated a shift towards non-debt financing strategies, particularly asset-based approaches, to manage Nigeria’s 2025 budget deficit.
In an interview with Arise News yesterday, Teriba emphasised the need to unlock the value of state-owned assets and adopt equity-based financing to meet the country’s infrastructure requirements without increasing debt burdens.
He cited the Nigerian National Petroleum Company Limited (NNPCL) as an example of an underutilised asset. “NNPC has no market value; it’s only if you sell oil or gas that you can make money from NNPC,” Teriba said, suggesting that initiatives like initial public offerings (IPOs) could help unlock its potential and generate capital.
Discussing the broader concept of asset financing, Teriba clarified that it does not involve selling government assets but rather inviting external investors to help realise their value. “When you talk about asset financing, it doesn’t mean asset disposal; it only means that you want to give external parties opportunities to invest in actualising the potential of the assets,” he explained.
He underscored the advantages of non-debt alternatives over traditional borrowing. “In trying to finance the deficit, you have two alternatives: debt financing and non-debt alternatives. We should be talking about non-debt alternatives,” he said.
Teriba called for a reassessment of the underutilisation of state-owned enterprises like the NNPC and other government infrastructure, urging the government to prioritise asset-based funding strategies to address fiscal challenges effectively.
