Abubakar Atiku Bagudu, Minister of Budget and Economic Planning says the 2025 budget was increased from N49.7 trillion to N54.2 trillion to strengthen key economic sectors and infrastructure projects.
Speaking to journalists in Abuja, on Wednesday, the minister explained that President Bola Tinubu approved the additional N4.5 trillion to further strengthen the Bank of Agriculture and the Bank of Industry, boost diversification by investing more in the solid minerals sector, and support projects under the Renewed Hope Infrastructure Fund.
“You’ll recall President Bola Ahmed Tinubu submitted a N49.7 trillion budget to the combined 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,” Bagudu said.
According to him, 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.
“In that process, both the Senate Committee on Appropriations, Senate Committee on National Planning, and Senate Committee on Finance established that we can generate more revenue by tasking all the institutions to do more.
“The Federal Inland Revenue Service confirmed their ability to generate more than what was initially submitted,” he added.
Bagudu further disclosed that 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.
This discovery, he said, was taken to President Tinubu, who, after consultations, directed that the extra funds be strategically allocated to critical sectors.
“The beauty of the National Assembly and Executive cooperation is that it’s a harmonious relationship. Mr. President was briefed on this additional revenue, and he guided that it should be used to further strengthen the Bank of Agriculture, the Bank of Industry, support diversification by putting more money in the solid mineral sector, as well as projects under the Renewed Hope Infrastructure Fund,” Bagudu stated.
On whether the increase would necessitate an adjustment of the Medium-Term Expenditure Framework (MTEF), the minister confirmed that changes would be made to align with the revised budget.
“Oh, yes, the fact of the submission and the National Assembly is always welcoming. Recall that even when the budget was submitted, the MTEF was amended because the version approved was for a budget of less than N49 trillion. So it goes together, and the National Assembly has always been part of this process. A consequential amendment to the MTEF will certainly follow,” he explained.
President Tinubu on Wednesday raised the proposed 2025 budget from ₦49.7 trillion to ₦54.2 trillion, citing additional revenues generated by key government agencies.
The President informed the Senate and the House of Representatives in separate letters that the increase was driven by ₦1.4 trillion in additional revenue from the Federal Inland Revenue Service (FIRS), ₦1.2 trillion from the Nigeria Customs Service (NCS), and ₦1.8 trillion generated by other government-owned agencies.
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