The Federal Government has provided insights into why President Bola Tinubu increased Nigeria’s 2025 budget from ₦49.7 trillion to ₦54.2 trillion.
According to the Minister of Budget and Economic Planning, Atiku Bagudu, the adjustment followed a detailed review by both the executive and legislative arms, which revealed that government-owned enterprises, including the Nigeria Customs Service (NCS) and the Federal Inland Revenue Service (FIRS), could generate additional revenue if tasked with greater responsibility.
Speaking on Wednesday after seeing off President Tinubu at the Nnamdi Azikiwe Airport, Abuja, before his trip to France, Bagudu explained that the additional ₦4.5 trillion in revenue was identified during legislative scrutiny.
This led to Tinubu adopting the recommendation to increase the budget, which is still awaiting consideration and passage at the National Assembly.
“The Senate Committees on Appropriation, National Planning, and Finance established that we can generate more revenue by pushing key institutions to perform better. The FIRS and Customs Service confirmed their capacity to exceed initial revenue targets,” Bagudu stated.
Bagudu clarified that the additional funds would be directed towards strengthening key sectors of the economy, including:
- Bank of Agriculture & Bank of Industry – To enhance financial support for businesses.
- Solid Minerals Sector – To boost economic diversification.
- Infrastructure Projects – To support national development initiatives.
Bagudu also noted that the Medium-Term Expenditure Framework (MTEF), which was initially approved for a ₦49 trillion budget, would be adjusted to reflect the new figures.
“When the initial budget was submitted, the MTEF had to be amended. With the new revenue projections, a consequential amendment to the MTEF will certainly follow,” he added.
The National Assembly is expected to deliberate on the new budget proposal, which reflects President Tinubu’s commitment to economic growth, diversification, and infrastructure development.
