***Adjourns Till January 14

Barely 24 hours after President Bola Tinubu presented the 2025 Appropriation Bill, the Senate has passed the piece of legislation for second reading.
The Senate had earlier debated the 2025 Appropriation Bill after it was mentioned for first reading focusing on critical issues of security, economic growth, and effective implementation of the ₦49.7 trillion budget.
Following robust discussions, the bill was passed for a second reading and referred to the Senate Committee on Appropriation for detailed legislative scrutiny.

During the debate, lawmakers highlighted the importance of security as a prerequisite for achieving the budget’s goals. Senator Orji Uzor Kalu emphasized the need to inject more funds into the manufacturing sector and development institutions like the Bank of Industry to stimulate economic growth.

Similarly, Senator Francis Adefadausi (Osun East) stressed that the 24% allocation for defense would be ineffective without tackling insecurity. He added that improved security would also boost agricultural productivity.

In agreement, Senator Diket Plang (Plateau Central) stated, “Without security, all items listed will not work, but with security in place, agriculture will enjoy a bumper harvest.”

Concerns about regional inclusiveness were also raised. Senator Victor Umeh (Anambra Central) decried the exclusion of the Port Harcourt-Maiduguri Eastern railway line from the budget and urged its inclusion during committee review. Likewise, other lawmakers flagged the omission of the South-South Development Commission and cautioned against fiscal policies that could escalate inflation.

Senator Ndubueze Patrick (Imo North) advocated for market-determined exchange rates instead of the proposed ₦1,500 naira-to-dollar peg, a position supported by Senator Sadie Usman (Kwara North), who called for prudent government spending.

The Senate President, Godswill Akpabio, commended the robust debate and announced the adjournment of plenary for the Christmas and New Year holidays. The lawmakers will reconvene on January 14, 2025, to continue legislative activities.

The 2025 budget, titled “Budget of Restoration: Securing Peace, Rebuilding Prosperity,” aims to stabilize the economy, improve education, enhance infrastructure, and reduce inflation.
Senate Approves 2025 Budget for Second Reading
The Senate Leader Michael Opeyemi Bamidele (Ekiti Central), while leading the debate highlighted the ₦49.74 trillion budget’s potential to address Nigeria’s economic and infrastructural challenges.

Dubbed the “Budget of Restoration: Securing Peace, Rebuilding Prosperity,” the proposal represents a nominal increase of 74.18% from the previous year, though it contracts by 23.22% in dollar terms due to the weakened naira.

Key projections include a $75 oil price benchmark, 2.06 million barrels daily production, and a ₦1,500 naira-to-dollar exchange rate. Sectoral allocations prioritize defense (₦4.91 trillion), infrastructure (₦4.06 trillion), education (₦3.52 trillion), and debt servicing (₦15.81 trillion).

Senator Bamidele praised the administration’s focus on stabilizing inflation, improving security, and boosting industrial output, describing the proposals as a bold step toward economic recovery.
The bill was referred to the Appropriation Committee for further legislative review.

The Chairman of the Senate Committee on Capital Markets and Institutions, Senator Osita Izunaso (APC, Imo West), has raised concerns over the late submission of the 2025 budget proposals, stating that it will disrupt Nigeria’s January-to-December budget cycle.

Speaking after President Bola Tinubu presented the 2025 Appropriation Bill to the joint session of the National Assembly, Senator Izunaso noted that the delay would make it impossible for the 2025 budget to take effect at the start of the new year, a practice that had been restored in recent years.

“The budget is coming late. Today is December 18, so we will lose that culture of beginning a new year with a new budget,” Izunaso remarked.

To address the gap caused by the delay, the senator revealed that the National Assembly would extend the implementation of the 2024 budget into 2025. He explained that the extension would ensure continuity in funding for government projects and operations until the new budget is passed.

“Even after 12 months, we still have the liberty to extend it. In fact, we are extending the 2024 budget today,” Izunaso said.

Executive Blamed for the Delay

The senator criticized the executive arm of government for submitting the 2025 budget proposals late but acknowledged that the delay may have been due to efforts to finalize critical details.

“The executive ought to have brought this budget way before now. But I believe that maybe they are putting things together. They wouldn’t want to delay deliberately bringing the budget to the National Assembly,” he said.

Loss of Budget Discipline

While Izunaso reassured Nigerians that the delay would not significantly affect the budget’s functionality, he lamented the loss of the discipline associated with starting the fiscal year with an approved budget.

“That culture of starting on the 1st of January, we have lost it,” he stated.

The senator’s comments highlight the importance of timely budget submission in maintaining fiscal discipline and ensuring seamless government operations. However, with the extension of the 2024 budget, the government aims to mitigate the immediate effects of the delay.

The senator representing Anambra Central Senatorial District, Victor Umeh, has expressed mixed feelings about President Bola Ahmed Tinubu’s 2025 budget.
While acknowledging its focus on critical sectors such as security, education, healthcare, and infrastructure, Umeh voiced strong reservations about the growing reliance on borrowed funds to finance government spending.

“I am personally excited by the budget’s ambition and the focus on key areas that will drive national growth. However, I must stress that the larger the size of our borrowing, the greater the burden of servicing the debt,” Umeh stated. He warned that excessive borrowing could lead to unsustainable debt servicing costs, undermining the country’s fiscal stability and limiting its ability to fund essential programs.

The senator’s remarks align with widespread concerns about Nigeria’s increasing debt burden, with debt servicing consuming a significant portion of the national budget. Umeh cautioned against allowing the country to fall into a cycle of borrowing and interest payments, which could choke critical investments in infrastructure and services.

“We must ensure that the revenue support is in place to implement this budget so we do not rely too heavily on borrowed funds,” Umeh added, urging the government to prioritize revenue generation to reduce dependence on loans.

In addition to fiscal concerns, Senator Umeh stressed the importance of equitable development across Nigeria’s six geopolitical zones.
He highlighted the need for fairness in the distribution of infrastructure projects and government programs to ensure that all regions benefit equally from federal investments.

“The infrastructure projects must be distributed fairly across all six geopolitical zones. We must develop Nigeria at an equal pace, and all parts of the country must be carried along in the spending and programs of the government,” Umeh stated. He pledged to advocate for any regions that might be overlooked when the full breakdown of the budget is presented.

Despite these concerns, Senator Umeh expressed optimism about the budget’s potential to drive growth and development. He emphasized the need for careful scrutiny and robust fiscal management to ensure that the ambitious spending plan does not lead to long-term economic challenges.

“The 2025 budget offers a hopeful vision for Nigeria’s future, but it must be approached with caution, particularly regarding the country’s reliance on debt,” Umeh concluded.

As debates on the budget unfold, Senator Umeh’s comments reflected a balance of optimism about the proposed investments and a call for fiscal responsibility and equitable development.
His focus on revenue generation and regional inclusivity highlighted key areas for lawmakers to address as they evaluate the budget.