George Mgbeleke,Abuja

President Bola Tinubu has increased the proposed total budget size for 2025 from N49.7teillion he presented to the joint session of the National Assembly on December 18, 2024 to N54.2trillion .

President Tinubu announced an increase in the proposed budget size through separate letters forwarded to both the Senate and the House of Representatives .

The President in the letter read during plenary in the Senate by Senator Godswill Akpabio , said the increase arose from N1.4trilliion additional revenues made by the Federal Inland Revenue Service ( FIRS ) , N1.2trillion made by the Nigeria Customs Service , N1.8trilliion generated by some other Government Owned Agencies .

The President of the Senate consequently directed the request to the Senate Committee on Appropriations for expeditious consideration and declared that the budget consideration , would be concluded and passed before the end of this month.

President Tinubu’s letter to the President of the Senate on the breakdown of the additional revenue to the 2025 budget reads as follows,”I am writing to inform you of the availability of additional revenue amounting to N4,530,479,970,637 and to propose its allocation within the 2025 Appropriation Bill to enhance the budget’s responsiveness to the nation’s most pressing priorities and aspirations.

(1)Additional Revenue Breakdown:

This additional revenue, sourced from key agencies, represents a pivotal opportunity to address Nigeria’s critical challenges and advance its development agenda:

Government-Owned Enterprises (GOES): N1,823,879,970,637

Federal Inland Revenue Service (FIRS): N1,497,600,000,000

(2) Federal Government’s 52% share of the increase in revenue from N22.1 trillion to N25.1 trillion_

Nigerian Customs Service (NCS): N1,209,000,000,000

(Federal Government’s 52% share of the increase in revenue from N6.5 trillion to N9.0 trillion)

With this additional revenue, the 2025 Appropriation Bill’s total budget size will increase from N49.7 trillion to N54.2 trillion, demonstrating our commitment to inclusive growth and security.

(3) Proposed Allocation of Additional Revenue:

I propose that these funds be allocated to the following transformative expenditure areas:

i. Solid Minerals Sector-N1 trillion. To support economic diversification by unlocking the potential of Nigeria’s vast solid mineral resources, which remain an untapped revenue stream and a vital pillar of non-oil growth.

Re-capitalization of the Bank of Agriculture (BoA) N1.5 trillion: To transform Nigeria’s agricultural landscape, ensure food security, and empower small holder farmers and agribusinesses.

Re-capitalization of the Bank of Industry (Bol) N500 billion To provide critical support to small and medium enterprises (SMEs), drive local manufacturing, and reduce dependence on imports

iv Critical Infrastructure Projects (RHID Fund) – N1.5 trillion. Allocated as follows:

a Irrigation Development (through River Basin Development Authorities): N380 billion.

b. Transportation Infrastructure (roads and rail): N700 billion (300 billion for the construction and rehabilitation of critical roads and 400 billion for light rail network development in urban centers),

c. Border Communities Infrastructure: N50 billion,

d. Military Barracks Accommodation: N250 billion, and

e. Military Aviation: N120 billion.

(4) Justifications for Allocations:

i. Solid Minerals Sector – N1 trillion

a Economic Resilience: Reduces reliance on volatile oil sector by creating alternative revenue streams.

b. Regional Equity. Encourages development in resource-rich, underserved areas, boosting rural economies.

c. Value Addition: Supports processing and export of minerals, increasing foreign exchange earnings.

ii. Bank of Agriculture Recapitalization – N1.5 trillion

a. Food Security: Empowers smallholder farmers and agribusinesses, improving access to affordable credit.

b. Economic Growth: Enhances agricultural productivity and supports agro-industrial value chains.

c. Export Competitiveness: Promotes the export of high-value crops, reducing pressure on the Naira.

Bank of Industry Recapitalization – N500 billion

a. SME Empowerment. Provides affordable financing for innovation and entrepreneurship.

b. Job Creation: Drives industrial growth and supports local manufacturing, reducing unemployment

c. Revenue Growth: Expands the tax base through industrial expansion.

iv. Critical Infrastructure (RHID Fund) – N1.5 trillion

a. Irrigation Development: N380 billion will strengthen Nigeria’s capacity for year-round agricultural production, ensuring water security and boosting food supply.

b. Transportation Infrastructure: N700 billion will modernize Nigeria’s road and rail networks, reducing costs, enhancing connectivity, and supporting economic activity.

c. Border Communities Infrastructure: N50 billion will improve living standards and enhance the security of border regions, fostering stability and cross-border trade.

d. Military Barracks Accommodation: N250 billion will provide modern and expanded housing for personnel, boosting morale and operational readiness

e. Military Aviation: N120 billion will modernize Nigeria’s aviation capabilities, ensuring the military remains responsive to emerging security challenges.

(4). A Philosophical Case for Military Expenditure:

The foundation of a thriving nation lies in its ability to protect its citizens. No infrastructure, no innovation, and no progress can be enjoyed or sustained without security. The government has a constitutional obligation to secure lives and property, and military expenditure is not merely a fiscal decision-it is a moral imperative. By investing in our armed forces, we affirm our resolve to end terrorism, safeguard the dignity of our people, and create conditions for economic prosperity. This budget reflects not only our commitment to securing Nigeria today but to building a future where every citizen can live and thrive without fear.

)5)Broader Justification:

This allocation framework underscores the Administration’s dedication to fostering inclusive growth, addressing security challenges, and building resilience into Nigeria’s economic fabric. These investments will:

i. Promote Stability By addressing critical infrastructure deficits, especially in underserved regions, and strengthening national security

ii. Diversify Revenue: By investing in agriculture, solid minerals, and manufacturing. reducing over-reliance on oil revenues.

iii. Catalyze Economic Growth: By enhancing infrastructure, supporting SMEs, and unlocking Nigeria’s vast economic potential.

Tinubu finally requested the Senate for Integration of the additional revenue to the,2025 appropriation Bill.

“I urge the National Assembly to adopt and integrate these proposals into the 2025 Appropriation Bill, reflecting our shared commitment to national development. Kindly let me know if additional information or clarification is required,” he said.