• N1tr for solid minerals sector
• Bank of Agric gets N1.5tr for recapitalisation in additional estimate
The 2025 budget has been raised from N49.7 trillion to N54.2 trillion to bolster key economic sectors and infrastructure initiatives, according to the Minister of Budget and Economic Planning, Abubakar Atiku Bagudu, who spoke yesterday. This adjustment follows a request from President Bola Ahmed Tinubu for a N4.53 trillion increase in the budget. Senate President Godswill Akpabio read the President’s letter during a plenary session.
The President explained that the increase was made possible by additional revenue generated from key government agencies, including N1.4 trillion from the Federal Inland Revenue Service (FIRS), N1.2 trillion from the Nigeria Customs Service, and N1.8 trillion from other government-owned entities. After reading the letter, Akpabio referred it to the Senate Committee on Appropriations, with an expectation that the budget will be reviewed and passed later this month.
Bagudu also shared that the additional N4.5 trillion will help further strengthen the Bank of Agriculture (BoA) and the Bank of Industry (BoI), support diversification efforts by investing in the solid minerals sector, and fund projects under the Renewed Hope Infrastructure Fund.
“You’ll recall that President Tinubu submitted a N49.7 trillion budget to the National Assembly, and legislative work commenced.
“Through continued interactions between the Executive and the National Assembly, it was established that we could generate more revenue,” he said.
According to the minister, the Senate committees on appropriations, national planning, and finance, along with the economic management team, determined that various government institutions could contribute more revenue than initially projected.
“The FIRS confirmed their ability to generate more than what was initially submitted,” he added.
Bagudu said other revenue-generating agencies, including government-owned enterprises and the Nigeria Customs Service, also confirmed their capacity to increase their contributions, resulting in additional revenue of over N4.5 trillion.
He said President Tinubu, after consultations, directed that the extra funds be strategically allocated to critical sectors.
“Mr. President was briefed on this additional revenue, and he directed that it should be used to further strengthen the BoA, the BoI, support diversification by putting more money in the solid mineral sector, as well as projects under the Renewed Hope Infrastructure Fund,” Bagudu said.
The additions
President Tinubu’s letter of request was entitled: “2025 Appropriation Bill – Allocation of additional revenue of N4.53trillion”.
It reads in part: “I am writing to inform you of the availability of additional revenue amounting to N4,530,479,970,637 and to propose its allocation within the 2025 Appropriation Bill to enhance the budget’s responsiveness to the nation’s most pressing priorities and aspirations.”
He explained that the additional revenue, sourced from key agencies, presents a crucial opportunity to tackle pressing challenges and further the development agenda. This includes N1,823,879,970,637 from Government-Owned Enterprises (GOEs) and N1,497,600,000,000 from the Federal Inland Revenue Service (FIRS), both contributing to the Federal Government’s 52 percent share of the revenue increase from N22.1 trillion to N25.1 trillion.
The President also noted that the Nigerian Customs Service (NCS) generated an additional N1,209,000,000,000, representing the Federal Government’s 52 percent share of the revenue increase from N6.5 trillion to N9.0 trillion. As a result of this additional revenue, the total size of the 2025 Appropriation Bill grew from N49.7 trillion to N54.2 trillion.
President Tinubu said the increase demonstrates his administration’s “commitment to inclusive growth and security”.
He added: “I propose that these funds be allocated to the following transformative expenditure areas:
“Solid minerals sector – N1 trillion: to support economic diversification by unlocking the potential of Nigeria’s vast solid mineral resources, which remain an untapped revenue stream and a vital pillar of non-oil growth.
“Recapitalisation of the Bank of Agriculture (BoA) – N1.5 trillion: to transform Nigeria’s agricultural landscape, ensure food security, and empower smallholder farmers and agribusinesses.
“Recapitalisation of the Bank of Industry (Bol) N500billion: to provide critical support to small and medium enterprises (SMEs), drive local manufacturing, and reduce dependence on imports.
“Critical Infrastructure Projects (RHID Fund) – N1.5 trillion.”
Out of the RHID Fund, irrigation development (through River Basin Development Authorities) got N380 billion.
The president continued: “Transportation infrastructure (roads and rail): N700 billion (300 billion for the construction and rehabilitation of critical roads and 400 billion for light rail network development in urban centres).
“Border communities infrastructure: N50 billion; military barracks accommodation – N250 billion, and military aviation – N120 billion.”
Justifying the allocations, the President explained that the N1 trillion set aside for the solid minerals sector aims to enhance economic resilience by reducing dependence on the volatile oil sector, offering alternative revenue streams. He highlighted several benefits, including regional equity to foster development in resource-rich, underserved areas, and boosting rural economies. Additionally, the sector’s growth will support mineral processing and export, leading to increased foreign exchange earnings.
Regarding the increased funding for the Bank of Agriculture (BoA), President Tinubu emphasized that it will strengthen food security, empower smallholder farmers and agribusinesses, and improve access to affordable credit. Other objectives include promoting economic growth by enhancing agricultural productivity, supporting agro-industrial value chains, and increasing export competitiveness, with a focus on high-value crops to ease pressure on the naira.
The President believes that the N500 billion recapitalization of the BoA will empower SMEs by providing affordable financing for innovation and entrepreneurship, fostering industrial growth, and supporting local manufacturing, which will help reduce unemployment.
Providing further details on the N1.5 trillion allocated to the Renewed Hope Infrastructure Development (RHID) Fund, he outlined: “Irrigation development: N380 billion will strengthen Nigeria’s capacity for year-round agricultural production, ensure water security, and boost food supply.”
“Transportation infrastructure: N700 billion will modernise Nigeria’s road and rail networks, reducing costs, enhancing connectivity, and supporting economic activity.
“Border communities infrastructure: N50 billion will improve living standards and enhance the security of border regions, fostering stability and cross-border trade.
“Military barracks accommodation: N250 billion will provide modern and expanded housing for personnel, boosting morale and operational readiness
“Military aviation: N120 billion will modernize Nigeria’s aviation capabilities, ensuring the military remains responsive to emerging security challenges.”
On the increased defence budget, the President explained that the foundation of a thriving nation lies in its ability to protect its citizens, adding that no infrastructure, no innovation, and no progress can be enjoyed or sustained without security.
He stressed that the government has a constitutional obligation to secure lives and property, and military expenditure is not merely a fiscal decision but a moral imperative.
President Tinubu said: “By investing in our armed forces, we affirm our resolve to end terrorism, safeguard the dignity of our people, and create conditions for economic prosperity.
“This budget reflects not only our commitment to securing Nigeria today but to building a future where every citizen can live and thrive without fear.”
President Tinubu noted that by investing in agriculture, solid minerals, and manufacturing, there will be a reduction in over-reliance on oil revenues.
The investments, he reasoned, will catalyse economic growth by enhancing infrastructure, supporting SMEs, and unlocking Nigeria’s vast economic potential.
Requesting for integration, the President added: “I urge the National Assembly to adopt and integrate these proposals into the 2025 Appropriation Bill, reflecting our shared commitment to national development.
