Toba Owojaiye reporting
Abuja, Nigeria
The Nigerian Senate has approved the 2025 budget, raising it by N750 billion to a total of N54.9 trillion. This follows President Bola Tinubu’s request for an upward revision from the initial N49.7 trillion proposal to N54.2 trillion.
Truth Live News gathered that the Breakdown of the Budget
Senate President Godswill Akpabio announced the budget’s passage on Thursday after a majority of senators supported it through a voice vote. The decision followed a review of the report presented by Adeola Olamilekan, Chairman of the Senate Committee on Appropriations.
Key allocations include:
N3.6 trillion – Statutory Transfers
N14.3 trillion – Debt Service
N23.9 trillion – Capital Expenditure
N13.8 trillion – Fiscal Deficit
President Tinubu justified the increase by citing additional revenue generated by agencies such as the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS). The Senate approved an extra N5.4 trillion to address key development projects, including N1 trillion for the Solid Minerals Sector and N1.6 trillion for the recapitalization of the Bank of Agriculture (BOA).
Major Spending Areas:
Infrastructure Projects – N5 trillion
N380 billion – Irrigation via River Basin Development Authorities
N300 billion – Road construction & rehabilitation
N400 billion – Urban light rail networks
N50 billion – Border community development
N250 billion – Military barracks
N120 billion – Military aviation
Health Sector Bailout – $200 million (N300 billion) to mitigate effects of U.S. aid suspension
Security & Governance – Increased funding for INEC, EFCC, ICPC, NJC, and NDLEA
Budget Growth: A Justified Expansion or a Red Flag?
The 2025 budget marks another significant increase from previous years. The 2023 budget stood at N21.8 trillion, while the 2024 budget was N28.7 trillion. The current N54.9 trillion allocation represents a 91% increase in just two years, raising concerns about transparency and accountability.
Critics argue that such a large additional sum, especially amid a rising debt burden (now over N87 trillion), could indicate budget padding, inefficiencies, or outright corruption. N14.3 trillion (26%) is allocated to debt servicing, raising questions about the sustainability of Nigeria’s borrowing practices.
On the other hand, government officials maintain that the budget increase is necessary to tackle inflation, fund critical infrastructure, and stabilize the economy. However, with N5 trillion for infrastructure projects, observers worry that funds could be mismanaged, as past budgets have often resulted in unfinished or abandoned projects.
The passage of this budget comes at a time of rising economic hardship, with Nigerians facing high inflation, a weak naira, and increasing fuel prices. Many citizens and financial experts have called for greater scrutiny of the spending process to ensure that the increased allocations translate into tangible benefits rather than political patronage.
While the budget now awaits Tinubu’s assent, attention will be on the implementation process—whether it delivers promised infrastructure and development, or follows the path of past budgets where large figures were approved but results remained scarce.