***Allocates N23.96 Trillion for Capital Projects, N14.31 Trillion for Debt Servicing

The Nigerian Senate along with the House of Represebtatives have passed the 2025 Appropriation Bill, approving a record-breaking budget of N54,990,165,355,396 to finance government activities in the coming fiscal year.

The budget, titled A Bill for an Act to Authorise the Issue from the Consolidated Revenue Fund of the Federation, was approved after deliberations on its allocations and implications for economic growth, debt management, and infrastructure development.
The chairman of the National Assemble Godswill Akpabio who is also the President of the Senate gave the beakdown of the 2025 Budget to show that Statutory Transfers: ₦3.65 trillion, debt Servicing: ₦14.32 trillion, Recurrent (Non-Debt) Expenditure: ₦13.06 trillion and
Capital Expenditure: ₦23.96 trillion

The largest chunk of the budget, ₦23.96 trillion, was allocated for capital expenditure, aimed at infrastructure development, healthcare, education, and security.
This signals the government’s commitment to addressing Nigeria’s infrastructural deficit.

However, the ₦14.32 trillion earmarked for debt servicing highlights the country’s rising debt burden, sparking concerns over long-term financial sustainability.

With the National Assembly approval, the budget now awaits President Bola Tinubu’s assent, after which implementation will begin. Analysts predict a challenging fiscal year, balancing economic growth with prudent spending and debt repayment.

However, time will tell whether the historic budget will deliver on its promises, or economic realities force adjustments down the line?

***Says addittional fund is to Prioritize Infrastructure, Health, Economic Growth

The chairman of the senate committee on Appropriation Senator Adeola Solomon Olamilekan has explained the approval of the 2025 Appropriation Bill by the national Assembly which it increased from N49.7 trillion to N54.99 trillion—the highest in the nation’s history.
The adjustment followed legislative reviews that uncovered additional revenues from key government agencies.
While explaining the Budget Expansion and Revenue Sources Olamilekan indicated that the additional N4.99 trillion was sourced from Nigeria Customs Service, Federal Inland Revenue Service (FIRS) and Government-Owned Enterprises (GOEs)

These he said led to an increase in funding for critical sectors, including N1.5 trillion for Bank of Agriculture, N500 billion for Bank of Industry, 1 trillion for Ministry of Solid Minerals, N1.5 trillion for Renewable Infrastructure Fund, N300 billion – Road construction and N400 billion for Rail transport.
Others are N380 billion of Water resources, irrigation, and dam projects, N250 billion for Military barracks renovation N120 billion for New military aviation projects, N50 billion for Border security agencies
Following the suspension of U.S. health aid, which previously provided funding for HIV, tuberculosis, malaria, and polio treatments, President Tinubu approved $200 million (N300 billion) to ensure continued medical supplies and healthcare support for affected patients.

On the major Boost for Infrastructure Development he said a record N23.7 trillion has been allocated for capital projects, marking a significant leap in infrastructure investment.
He listed the areas the funds will focus on to include Roads and railways,nEducation and healthcare improvements and Other critical public infrastructure
To prevent delays in budget implementation, the 2026 budget process will begin in July 2025, with the Medium-Term Expenditure Framework (MTEF) submitted early and the Appropriation Bill expected by October 2025.

Concerns over inadequate rail infrastructure funding in the South East were raised, but legislative leaders clarified that rail projects are primarily funded through public-private partnerships (PPPs).
According to him, the 2025 budget focuses on light rail development in Lagos, Ogun, Kaduna, and Kano, while further discussions on South East projects are ongoing.

He explained that to maintain Economic Stability the budget parameters remain unchanged, with key revenue sources including FIRS increasing its revenue target to N25.1 trillion, Nigeria Customs Service boosting revenue collection through stricter enforcement and Independent revenue agencies contributing 100% of their generated funds to the federal government

***Focus on Agriculture, Solid Minerals, Infrastructure, and Security

President Bola Ahmed Tinubu has proposed an additional N4.53 trillion allocation to the 2025 Appropriation Bill, increasing the total budget size from N49.7 trillion to N54.2 trillion.

The President communicated this adjustment in separate letters to both chambers of the National Assembly. It was read during plenary by Senate President Godswill Akpabio on Wednesday.

The increase, he explained, was due to additional revenues generated by the Federal Inland Revenue Service (FIRS) (N1.4 trillion), Nigeria Customs Service (NCS) (N1.2 trillion), and other Government-Owned Enterprises (GOEs) (N1.8 trillion).

Ruling on the matter, Akpabio referred the letter to the Senate Committee on Appropriations and directed them to expedite the necessary adjustments to the budget, which is currently under review. He assured that the budget would be passed before the end of February to ensure smooth government operations.

In his letter, Tinubu proposed N4.53 trillion to key sectors to drive economic diversification, infrastructure development, and national security.
Solid Minerals Sector was allocated N1 trillion” to unlock Nigeria’s vast mineral resources, reduce reliance on oil, and create alternative revenue streams.”

Bank of Agriculture Recapitalisation got N1.5 trillion to enhance food security, empower smallholder farmers, and promote agro-industrial value chains while Bank of Industry Recapitalisation got N500 billion to support small and medium enterprises (SMEs), boost local manufacturing, and reduce import dependence.

Infrastructure Development got N1.5 trillion while Irrigation Development (N380 billion) to support year-round farming and ensure water security.

For transportation Infrastructure, N700 billion was allocated, Including N300 billion for roads and N400 billion for urban rail networks. Border Communities Infrastructure got N50 Billion) to enhance security and foster economic development.

On security, Military Barracks Accommodation was allocated N250 billion) to improve housing for security personnel, while Military Aviation was proposed N120 Billion) to modernise Nigeria’s military air capabilities.

President Tinubu justified the allocations to the military, stating that no progress can be made without security.
He emphasised that investing in the armed forces was a moral and economic necessity as national security remains the foundation of economic stability and development.
He indicated that Investments in solid minerals will expand Nigeria’s revenue base and reduce reliance on oil.

“Recapitalization of BoA and BoI will boost agriculture and industrial production, enhancing exports and creating jobs.
“Improved irrigation systems will support year-round farming and food production.
“Road and rail projects will reduce transportation costs and enhance connectivity.
“Border communities and military infrastructure investments will bolster national security and living conditions for security personnel.

Tinubu emphasized that national security is a moral imperative and a foundation for economic progress.
“The proposed investments in military barracks, aviation, and border infrastructure aim to enhance the readiness and welfare of Nigeria’s armed forces.

“No infrastructure, no innovation, and no progress can be sustained without security. Investing in our military affirms our resolve to end terrorism and safeguard our citizens,” the President stated.
The President urged the National Assembly to integrate these proposals into the 2025 budget, highlighting their alignment with Nigeria’s economic growth, diversification, and security priorities.

With this proposed increase, the Tinubu administration seeks to balance fiscal responsibility with strategic investments that will drive long-term national development.