Atiku Bagudu, minister of budget and economic planning has explained the rationale behind the upward review of 2025 budget.
Gatekeepers News reports that Bagudu made the explanation to journalists on Wednesday while seeing off President Bola Ahmed Tinubu at Nnamdi Azikiwe International Airport as he departed for France.
Recall that president Tinubu earlier today, asked the national assembly to increase the proposed 2025 budget from N49.7 trillion to N54.2 trillion.
Bagudu linked the increase to the collaborative efforts between the
executive and legislative arms to enhance revenue generation for the record-breaking
N49.7 trillion budget, dubbed the ‘Budget of Restoration: Securing Peace, Rebuilding Prosperity.
The minister said committees on appropriation, national planning, and finance worked closely with the executive to identify additional revenue streams.
He said, “You will recall Mr. President submitted a N49 trillion budget to the national assembly, and legislative work commenced.”
“In this process, it was established that institutions like the Federal Inland Revenue
Service (FIRS), government-owned enterprises, and the Customs Service can generate over N4.5 trillion more than initially projected.”
Bagudu noted that the additional revenue would be strategically allocated to critical sectors to foster economic diversification and growth.
He said, “The President guided that this additional revenue should be used to strengthen the Bank of Agriculture, Bank of Industry, support diversification programmes through investments in solid minerals, and fund infrastructure projects.”
Additionally, the minister addressed amendments to the medium-term expenditure framework (MTEF), which initially supported a smaller budget size.
He said, “The MTEF that was approved earlier was for a budget of less than N49 trillion. Consequential amendments will follow to align with this ambitious fiscal plan.”
“The 2025 budget reflects a significant 41.9% increase from the previous year’s N35 trillion allocation.”
“However, it comes with challenges such as a projected deficit of N13.39 trillion, which will be financed through debt (69%), loans (28%), and asset sales (2%).”
Bagudu expressed confidence in the government’s ability to meet its ambitious revenue target of N36.35 trillion through improved tax administration and reforms in revenue-generating agencies.
