Reasons for increase in 2025 budget by ₦700bn

Abubakar Bichi

Reasons for increase in 2025 budget by ₦700bn

• Budget would address Nigeria’s capital expenditure deficit, which currently stands at ₦23 trillion.

The Chairman of the Appropriation Committee, Abubakar Bichi, has attributed the ₦700 billion increase in the 2025 budget to the withdrawal of U.S. health support and the need to fund critical infrastructure projects across Nigeria.

Bichi, in a statement, explained that the United States government recently halted its health assistance to several countries, including Nigeria, prompting the government to allocate additional resources to the health sector.

According to Bichi, the president proactively requested an additional $200 million (approximately ₦300 billion) to support healthcare programs targeting tuberculosis, HIV, malaria, and polio.

He further clarified that an executive proposal outlined an estimate of ₦340 billion for health and other priority sectors. “When combined, this totals around ₦640 billion,” he noted.

Additionally, several government agencies, including INEC, NFYU, DSS, and others, submitted requests, further raising the budget increase to ₦700 billion.

Bichi emphasized that the budget expansion would also help address Nigeria’s capital expenditure deficit, which currently stands at ₦23 trillion. The additional funds will support:

Rail projects

Road infrastructure

Agriculture

Education

Funding Sources and Economic Viability

Addressing concerns about funding, Bichi reassured Nigerians that the government had carefully assessed revenue sources before approving the budget increase.

“Before making this decision, we met with the Ministry of Finance, the Nigerian Customs Service, and the Federal Inland Revenue Service (FIRS). They assured us that they could generate enough revenue to support the budget expansion,” he stated.

With this increase, the government aims to strengthen critical sectors, enhance economic growth, and improve public services nationwide.