The Federal Government has raised the 2025 budget from ₦49.7 trillion to ₦54.2 trillion, an increase of ₦4.5 trillion, to bolster key economic sectors and infrastructure projects, Minister of Budget and Economic Planning Abubakar Atiku Bagudu revealed on Wednesday.
Reasons for Budget Increase
Speaking at the Presidential Wing of the Nnamdi Azikiwe International Airport, Abuja, Bagudu explained that President Bola Ahmed Tinubu approved the additional ₦4.5 trillion to:
- Strengthen the Bank of Agriculture and the Bank of Industry.
- Boost economic diversification by investing in the solid minerals sector.
- Support projects under the Renewed Hope Infrastructure Fund.
Additional Revenue Sources
Bagudu stated that through discussions between the Executive and the National Assembly, it was established that the government could generate more revenue than initially projected.
- The Federal Inland Revenue Service (FIRS) confirmed it could generate more revenue than previously estimated.
- Nigeria Customs Service (NCS) also committed to higher contributions.
- Other government-owned enterprises identified an additional ₦1.8 trillion in revenue.
Breakdown of Additional Revenue
The extra ₦4.5 trillion in revenue comes from:
- ₦1.4 trillion from the FIRS.
- ₦1.2 trillion from the Nigeria Customs Service.
- ₦1.8 trillion from other government-owned agencies.
Consultation with the President
Bagudu noted that after this revenue increase was identified, it was presented to President Tinubu, who directed its strategic allocation.
“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.
Impact on the Medium-Term Expenditure Framework (MTEF)
Bagudu confirmed that the MTEF will be adjusted to reflect the revised budget:
“Yes, the National Assembly has always been part of this process. A consequential amendment to the MTEF will certainly follow.”
Next Steps
- The National Assembly will formally approve the revised budget.
- Key sectors will receive additional funding to support economic growth.
- The MTEF will be updated to align with the new budget framework.
This budget increase reflects Nigeria’s strategy to boost economic resilience, infrastructure development, and financial stability through higher domestic revenue generation.
