Abuja, Nigeria – The National Assembly has approved the second reading of the N49.7 trillion 2025 Budget tagged ‘Restoration Budget’, presented by President Bola Tinubu.
Both the Senate and the House of Representatives deliberated on the budget during their separate plenaries on Thursday before passing it.
The Senate President, Godswill Akpabio, presided over the session and referred the budget to the Committee on Appropriations, led by Senator Solomon Adeola. The committee has been directed to report back within four weeks. The National Assembly subsequently adjourned its plenary sessions until January 14, 2024.
Highlights of the 2025 Budget
President Tinubu unveiled the ‘Restoration Budget’ on Wednesday, emphasizing its focus on securing peace and building prosperity. The budget proposes N34.82 trillion in revenue to fund a total expenditure of N47.9 trillion, leaving a deficit of N13 trillion. Key allocations include:
- Defence and Security: N4.91 trillion
- Infrastructure: N4.06 trillion
- Education: N3.5 trillion
- Health: N2.48 trillion
- Debt Servicing: N15.81 trillion
The budget is based on assumptions of a crude oil production rate of 2.06 million barrels per day, an exchange rate of N1,500 to the US dollar, and a projected inflation rate of 15%, down from the current 34.6%.
President Tinubu described the budget as ambitious but necessary to address Nigeria’s challenges.
Senate Debates
Senate Leader Opeyemi Bamidele (APC, Ekiti Central) praised the budget as a demonstration of the President’s commitment to economic stability and national development. He noted the 74.18% increase in nominal terms compared to the previous year but acknowledged that the budget contracted by 23.22% in dollar terms, limiting its potential impact.
Deputy Senate President Barau Jibrin commended the emphasis on defence and security, which received the highest allocation, and argued that peace is essential for economic growth.
House of Representatives Discussion
In the House, debate began after a motion by House Leader Prof. Julius Ihonvbere to authorize the budget’s passage. Ihonvbere emphasized the importance of the budget in addressing Nigeria’s pressing challenges.
However, lawmakers raised concerns about specific allocations and targets:
Abdussamad Dasuki (PDP, Sokoto) highlighted the budget’s reduced dollar value and called for a review of the North-West Development Commission’s allocation.
Ismaila Dabo (PDP, Bauchi) advocated for greater focus on agriculture and revenue generation.
Ahmad Jaha (APC, Borno) said the defence allocation may be inadequate to address Nigeria’s security challenges.
Controversial Allocations
Several lawmakers questioned the allocation to development commissions. Jeremiah Umaru (APC, Nasarawa) pointed out that funds were allocated to the South West Development Commission (SWDC) despite its board not being constituted. Similarly, George Ozodinobi (APC, Deputy Chief Whip) called for increased funding for the South East Development Commission (SEDC).
Adjournment
After deliberations, the Senate and House of Representatives passed the budget for second reading. The National Assembly will reconvene on January 14, 2024.
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