Nigerian economic experts have expressed mixed reactions following the Federal Government’s decision to raise the 2025 Appropriation Bill from N49.7tn to N54.2tn, driven by additional revenue from key government agencies.
Economist Marcel Okeke criticised the last-minute adjustment, warning that the budget, which should have been effective from January 1, 2025, was still undergoing changes. “This is not how to run a country. The figures released in December have already been circulated globally,” Okeke stated. “The government should have waited and introduced a supplementary budget instead.”
Paul Alaje, Chief Economist at SPM Professionals, raised concerns over the impact of the increased spending on inflation, which the government aims to limit to 15%. “The government has added projects back into the budget, but this level of spending could push inflation further out of reach,” Alaje said.
However, Tunde Amolegbe, Managing Director of Arthur Steven Asset Management, supported the increase, calling it necessary for infrastructure growth. “A more ambitious budget is essential to improve our infrastructure,” he said, although he cautioned against excessive borrowing.
A leading economist, speaking anonymously, argued that the budget hike would worsen the economy, especially given the current deficit of nearly N16tn. “The government should focus on reducing the deficit, not increasing spending,” he commented.
The House of Representatives has backed President Tinubu’s proposal. Deputy Speaker Benjamin Kalu assured that the revised budget would undergo swift consideration. “This proposal demonstrates the administration’s commitment to revitalising the economy,” said House spokesperson Akin Rotimi.
Emphasising the budget’s focus on agriculture and national security, Deputy spokesman Philip Agbese noted that the allocation would support food security and military welfare.
The proposal, which includes an additional N4.5tn, follows revenue surpluses from the Federal Inland Revenue Service, Nigeria Customs Service, and other agencies. Minister of Budget and Economic Planning, Atiku Bagudu, explained that these funds would support infrastructure, agriculture, and solid minerals sectors.
President Tinubu’s budget, presented in November 2024, initially outlined N49.7tn for 2025. The increase will help finance a fiscal deficit of N13.39tn, with major allocations to critical sectors like agriculture, infrastructure, and security.
The Senate has referred the request to the Appropriations Committee, with an assurance from Senate President Godswill Akpabio that the budget will be passed by the end of February.
