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.

A former Governor of Bayelsa State and member of the Senate Committee on Tertiary Education, Senator Seriake Dickson, has praised President Bola Ahmed Tinubu’s 2025 budget for prioritizing education, healthcare, and human capital development. However, he also highlighted key concerns regarding optimistic oil production targets and the growing budget deficit.

Speaking to reporters, Senator Dickson lauded the significant allocations for education and healthcare, describing them as essential pillars of national development. He emphasized the importance of expanding access to higher education through initiatives like the Student Loan Board and expressed strong support for healthcare investments.

“Every government should focus on education, healthcare, and security as these are the foundations for sustainable national growth,” Dickson said. He further advocated for increased investment in agriculture and manufacturing to diversify the economy and create jobs.

While Senator Dickson acknowledged the ambition of the budget, he raised doubts about the feasibility of producing 2 million barrels of crude oil per day, given current challenges in the oil sector.

“We hope the target is achievable, but it is essential to engage oil-producing communities and prioritize their welfare,” he said, citing the Petroleum Industry Act’s (PIA) provision for a 5% allocation to these communities as critical for peace and stability in the Niger Delta.
Senator Dickson also expressed concern over the reliance on borrowing to finance the budget, noting that the deficit mirrors that of the 2024 budget. He called for urgent tax reforms to improve revenue generation and reduce dependence on deficit financing.

“Without significant improvements in revenue collection, deficit financing will continue to pose a sustainability challenge,” he warned.

Despite these concerns, Senator Dickson described the 2025 budget as a bold and optimistic plan with the potential to drive economic recovery and growth. He called for continued dialogue between the National Assembly and the executive to refine the budget during the legislative process.

“We will address the specifics during committee reviews, but the overall direction of the budget is commendable,” he concluded.

Senator Dickson’s comments reflect cautious optimism, balancing praise for the budget’s priorities with calls for practical measures to address fiscal challenges and ensure sustainable development.