JUST IN: Senate increases, passes 2025 budget

The Senate, on Thursday, passed the 2025 budget with an increase of about N750 billion.

It increased the budget from N54.2 trillion, proposed by President Bola Tinubu, to N54.9 trillion.

The Committee of Supply considered the budget.

The Senate President, Godswill Akpabio, announced the budget’s passage after most senators supported it through voice votes.

The senators supported passage of the budget after they reviewed a report presented by Adeola Olamilekan, chairman of the Senate Committee on Appropriations.

Mr Olamilekan, while presenting the report, recommended that N3.6 trillion be approved for Statutory Transfers, N14.3 trillion for Debt service, N23.9 trillion for Capital expenditure, and N13.8 trillion for Fiscal Deficit.

This increase comes about a week after President Tinubu requested an upward budget revision by N4.5 trillion. He increased it from its initial proposal of N49.7 trillion to N54.2 trillion.

In his letter to the National Assembly, President Tinubu explained that the increment was necessary due to additional revenue from the Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS), and other revenue-generating agencies in 2024.

How additional N4.5 trillion was shared

Mr Olamilekan said the additional request of N5.4 trillion by President Tinubu was approved to address critical challenges and advance government developments.

He said N1 trillion was approved for the Solid Minerals Sector and N1.6 trillion was approved for the recapitalisation of the Bank of Agriculture (BOA).

He said N5 trillion was approved for infrastructural projects, including irrigation development through River Basin Development Authorities, which specifically gulped N380 billion.

A total of N300 billion was approved for the construction and rehabilitation of critical roads while N400 billion was allocated for light rail networks in urban centres.

Border communities also got N50 billion from the share. Military and barracks got N250 billion, and N120 billion was appropriated for military aviation.

Health intervention

Mr Olamilekan also said the 2025 budget made a new provision of $200m, which is equivalent to N300bn, to fill the gap created by the United States Government’s suspension of intervention in the Nigerian health sector to proactively address the health challenges currently being experienced by some countries.

Similarly, additional funds were allocated to some agencies, namely the Independent National Electoral Commission (INEC), Nigerian Financial Intelligence Unit (NFIU), Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices and Other Offences Commission (ICPC), National Judicial Council (NJC), National Drug Law Enforcement Agency (NDLEA).