The Nigerian Senate has approved the 2025 Appropriation Bill, totaling N54.9 trillion, following its third reading.
Presenting the report, Senator Olamilekan Adeola, Chairman of the Committee on Appropriation, noted that many subcommittees raised concerns about inadequate funding and reduced allocations to Ministries, Departments, and Agencies (MDAs). He also highlighted the rising cost of governance and the continued depreciation of the naira.
Key Highlights of the 2025 Budget:
Total Expenditure: N54.9 trillion
Statutory Transfers: N3.6 trillion
Recurrent Expenditure: N13.6 trillion
Capital Expenditure: N23.9 trillion
Debt Servicing: N14.3 trillion
Fiscal Deficit: N13.8 trillion
Deficit-to-GDP Ratio: 1.52%
Budgetary Adjustments and Revenue Projections
Senator Adeola recalled that the initial budget proposal from the executive was N49.7 trillion. However, during the legislative review, the Joint Committee on Appropriations engaged with the President’s economic team to reassess revenue projections and expenditure needs.
Following these consultations, additional revenues were sourced from various revenue-generating agencies:
Federal Inland Revenue Service (FIRS): N1.4 trillion
Nigeria Customs Service: N1.2 trillion
Other Government Agencies: N1.8 trillion
These additional funds were allocated to critical projects, vaccine procurement, and underfunded government agencies.
Legislative Process and Recommendations
The Senate initially debated the bill on December 19, 2024, leading to its second reading and referral to the Appropriations Committee for further scrutiny. The committee collaborated with the National Assembly leadership and the executive arm to ensure efficient revenue allocation.
Senator Adeola urged the executive to present future budgets at least three months before the new fiscal year begins, ensuring Nigeria adheres to the January-December budget cycle.
