The Federal Government has allocated ₦845.28 billion to address minimum wage adjustments following the recent increase to ₦70,000. This allocation is part of the service-wide vote in the 2025 budget proposals presented by President Bola Ahmed Tinubu to the National Assembly on Wednesday.
On Thursday, the Senate and House of Representatives passed the 2025 Appropriation Bill, totaling ₦49.7 trillion, for a second reading. The budget includes ₦10.96 billion for settling local contracting debt obligations and ₦17.31 billion for group life assurance covering all ministries, departments, and agencies (MDAs), including the Department of State Services (DSS). This allocation also accounts for the insurance of sensitive assets, corps members, and administrative monitoring.
Other key allocations include ₦100 billion for “Operation Lafiya Dole” and other armed forces operations, and ₦20 billion for recapitalizing the Ministry of Finance Incorporated (MOFI). The Presidential Amnesty Programme is set to receive ₦65 billion to support the reintegration of rehabilitated ex-militants.
Additionally, ₦2.3 billion has been earmarked for the entitlements of former presidents, heads of state, vice presidents, and chiefs of general staff. The budget also provides ₦10.51 billion for the benefits of retired heads of the civil service of the federation and federal permanent secretaries.
The second reading of the 2025 budget followed detailed consideration and debate on its objectives and principles, titled “The Restoration Budget: Securing Peace, Rebuilding Prosperity,” during plenary sessions in both chambers. Senate Leader Opeyemi Bamidele and House Leader Julius Ihonvbere sponsored the Bill in their respective chambers.
It is entitled: “A Bill for an Act to authorise the issue from the Consolidated Revenue Fund of the Federation the total sum of N49,740,165,355,396 only, of which N4,435,761,358,925 only is for statutory transfers, N16,327,142,689,549 only is for debt service, N14,123,544,196,406 only is for recurrent (non-debt) expenditure while the sum of N14,853,717,110,517 only is for contribution to the Development Fund for Capital Expenditure for the year ending on the 31st day of December 2025, and for related matters, 2024 (SB. 681).”
Opeyemi in his lead debate, described the 2025 Budget as a reflection of the theme.
“The proposal tells a bold and exciting story on the direction the government is taking towards revamping the socio-economic fabric of our society.
“These can be seen through the lofty dreams of: projected drop in inflation from its current rate of 34.6 per cent to 15 per cent next year; projected improvement in the exchange rate from approximately N1,700 per US dollar to N1,500; projected crude oil production of 2.06 million barrels per day (mbpd); reduction in importation of petroleum products alongside increased export of finished petroleum products,” he said.
Deputy President of the Senate, Senator Barau Jibrin, said the lawmakers would ensure effective implementation after passage.
He said: “What we need to do after the passage is to make sure that it’s fully implemented.
“I’m sure by the time we implement this budget, this country will turn into a land of El Dorado, a land of plenty and prosperity.”
Senator Abdul Ningi (PDP, Bauchi Central) expressed “cautious optimism” about the 2025 budget proposals, emphasising the critical role of the National Assembly in shaping it to address the nation’s challenges.
He stressed the need to prioritise outcomes that improve citizens’ lives, such as addressing hunger, economic hardship, and security concerns.
“As a parliament, it should not be about what the President brought, it should be about what the parliament can do with what the President brought.”
Ningi called for a concerted effort to ensure the 2025 budget performs significantly better.
Chief Whip, Senator Mohammed Tahir Monguno (APC, Borno North) said the allocation of N2.6 billion to infrastructure is a significant step toward economic development, noting its potential to generate a multiplier effect.
“No matter how beautifully couched, no matter how beautifully presented, if they are not implemented, they remain in the realm of mere estimates that will not translate into creating concrete realities or concrete development for the illustrious people,” he said.
Senator Adams Oshiomhole (APC, Edo North) highlighted the critical importance of security in national development, stating that no sector can thrive without it.
He supported the allocation of the largest portion of the budget to defence, emphasising that it reflects the nation’s pressing need to address insecurity.
“Given all that we have faced as a nation with regards to insecurity, none of those other important sectors can be safe unless we have security,” he said.
Oshiomhole underscored the need for a smarter, more robust, and effective defence system, urging the Senate’s defence committee, led by the immediate past Senate President, to adopt a more focused and strategic approach to its oversight responsibilities.
Minority Leader of the House, Kingsley Chinda, said the budget was over-ambitious despite the President’s optimism.
He said Nigerians must not lose sight of the fact that the budget is merely a projection.
Chinda said: “Our indices are not completely correct. So, it is not yet Uhuru.
“The plan to reduce inflation from about 35 per cent to 15 per cent is over ambitious and I don’t see how we can achieve that.
“If we can achieve security in 2025, will that improve food security in 2025? I don’t think so. We can be looking at 2026 for food security.
“The budget for security will not take us to the promised land. In terms of revenue generation, the revenue sources remained the same.
“The concern is that let us not over-tax the people again. We should be talking about expanding the revenue sources, and tightening the tax net.
“The issue of revenue target is key, while the amount for deficit appears to be too high.
“With this figure, I don’t see how Nigerians will not go to bed hungry in 2025.
“How do we achieve an exchange rate of N1,500 when we have market forces dictating the exchange?
“What are the things on the ground that will crash the exchange rate?”
The House approved the extension of the implementation of the capital component of the 2024 budget from 31 December 2024 to 30 June 2025.
Deputy Speaker Benjamin Kalu, while announcing the adjournment of plenary to January 14, 2025, encouraged members to diligently work within their committees to ensure the prompt passage of the 2025 budget upon resumption.
The House Committee on Public Accounts has recommended the removal of the National Examinations Council (NECO), the University of Ibadan (UI), and 22 other departments and agencies from the 2025 budget. This decision stems from unaccounted funds allocated to these agencies in 2024 and previous years.
Speaking on Channels Television’s Sunrise Daily, the committee’s chairman, Bamidele Salam, criticized the lack of fiscal discipline among certain institutions, noting its negative impact on the efficient implementation of Nigeria’s budgetary allocations. Salam revealed that the affected agencies have consistently disregarded summons from the House to account for their expenditure of previous budgetary funds.
The lawmaker said: “Unfortunately, we have a situation where some agencies have become recalcitrant, refusing to honour invitations, summons, refusing to appear to account for previous allocations given to them in federal budgets, some in 2020, 2021, and 2022.
“One of the penalties specified by the Financial Regulations 2009 and other enabling laws on the issue of accountability in Nigeria is that ministries that refuse to account for monies appropriated by the National Assembly or refuse to honour invitations to render those accounts can be delisted from further funding.
“That is exactly what the Public Accounts Committee did by reviewing in the last few months those ministries, departments and agencies that have consistently refused to honour invitations or even submit documents which will authenticate their judicious and lawful use of resources previously allocated.”
