The Federal Government has clarified the rationale behind the upward adjustment of the 2025 budget from ₦49.7 trillion to ₦54.2 trillion, attributing the increase to an agreed expectation that revenue-generating agencies can boost their financial contributions.
Speaking on Wednesday after President Bola Tinubu’s departure from the Nnamdi Azikiwe Airport, Abuja, to France, the Minister of Budget and Economic Planning, Atiku Bagudu, provided insight into the budget increment.
He noted that following a thorough review by both the executive and legislative branches, it became evident that government-owned revenue institutions—such as the Nigeria Customs Service (NCS) and the Federal Inland Revenue Service (FIRS)—possess the capacity to generate more income if assigned higher targets.
According to Bagudu, a report detailing this assessment was presented to President Tinubu, who approved the recommendation, leading to an additional ₦4.5 trillion being incorporated into the 2025 Appropriation Bill, which is currently under consideration at the National Assembly.
Allocation of Additional Revenue
The Minister further explained that the extra funds would be allocated towards strengthening key financial and developmental institutions, particularly the Bank of Agriculture and the Bank of Industry. Additionally, the funds would support economic diversification efforts by injecting more capital into the solid minerals sector and advancing infrastructure projects.
He stated: “The legislative work continued with interactions between the executive and the National Assembly. The National Assembly and the Economic Management Team continued to interrogate all figures.
“In that process, the Senate Committee on Appropriation, 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, and the Federal Inland Revenue Service confirmed the ability to do more than was submitted.
“Equally, it was established that the government-owned enterprises can contribute more revenue, as well as the Customs Service. So, additional revenue amounting to over 4.5 trillion naira was established, and this was taken to the President.
“And guided that this additional revenue should be used to further strengthen the Bank of Agriculture, Bank of Industry, support the diversification program by putting more money in the solid minerals sector as well as infrastructure projects.”
Adjustment to the Medium-Term Expenditure Framework (MTEF)
Addressing modifications to the Medium-Term Expenditure Framework (MTEF), Bagudu emphasized the necessity of amending the framework to align with the revised budget size.
“Recall that even when the budget was submitted, MTEF was amended. The MTEF that was initially approved was for a budget of less than 49 trillion naira, so it goes together, and so the consequential amendment to the MTEF will certainly follow,” he explained.