President Bola Tinubu, yesterday, increased the appropriation bill for the 2025 fiscal year from N49.7 trillion to N54.2 trillion.
Tinubu announced the increment in separate letters, which he forwarded to both the Senate and the House of Representatives yesterday.
Minister of Budget and National Planning, Senator Atiku Bagudu, explained that the increment was to allow for the approval of more revenue to strengthen the Bank of Agriculture and Bank of Industry.
Bagudu said the increase was also to support the administration’s diversification programme by putting more money in the solid minerals sector as well as infrastructure projects.
However, a member of the House of Representatives, Hon. Kingsley Chinda, faulted the procedure for the increment.
Chinda said the presentation from the executive should not have come in the form of a letter.
Tinubu’s letter was read during plenary in the Senate by Senate President Godswill Akpabio, and in the House of Representatives by Speaker Tajudeen Abbas.
Tinubu attributed the N4.53 trillion added to the appropriation bill to an increment in revenues recorded by some revenue-generating agencies of the federal government.
He said the increase arose from N1.4 trillion additional revenues made by the Federal Inland Revenue Service (FIRS); N1.2 trillion made by the Nigeria Customs Service; and N1.8 trillion generated by some other Government-owned Agencies (GOEs).
The Ministry of Solid Minerals Development was the highest beneficiary of the additional revenues, as it got N1 trillion.
The ministry, which has Mr. Dele Alake as minister, initially had N6 billion envelope from the Budget Office for the 2025 fiscal year before the National Assembly joint committee on Solid Minerals increased it to N9 billion.
The president of the senate after, reading the letter, consequently, directed the request to the Senate Committee on Appropriations for expeditious consideration.
Akpabio also declared that the budget consideration would be concluded and passed before the end of February.
Tinubu wrote in the letter, “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.
“This additional revenue, sourced from key agencies, represents a pivotal opportunity to address Nigeria’s critical challenges and advance its development agenda”
He said GOEs generated additional revenues of N1,823,879,970,637 while the FIRS raked in N1,497,600,000,000
Tinubu stated that the federal government’s 52 per cent share of the increase in revenue rose from N22.1 trillion to N25.1 trillion and put that of the NCS at N1,209,000,000,000
The federal government’s 52 percent share of the increase in revenue rose from N6.5 trillion to N9 trillion.
He said, “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.”
The president suggested the allocation of the proposed additional revenues to the Ministry of Solid Minerals Development, Bank of Agriculture, Bank of Industry, and other critical sectors.
Tinubu wrote, “I propose that these funds be allocated to the following transformative expenditure areas: 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.
“Recapitalisation of the Bank of Agriculture (BoA) – N1.5 trillion. This is to transform Nigeria’s agricultural landscape, ensure food security and empower smallholder farmers and agribusinesses.
“Recapitalisation of the Bank of Industry (Bol) – N500 billion. This is to provide critical support to small and medium enterprises (SMEs), drive local manufacturing, and reduce dependence on imports.
“Critical Infrastructure Projects (RHID Fund) – N1.5 trillion. N380 billion will be allocated as irrigation development through River Basin Development Authorities.
“Transportation Infrastructure (roads and rail) N700 billion; N300 billion for the construction and rehabilitation of critical roads and N400 billion for light rail network development in urban centres.”
The president also suggested the allocation of N50 billion to Border Communities Infrastructure, N250 billion for Military Barracks Accommodation, and N120 billion for Military Aviation.
Justifying the allocation of N1 trillion to the solid minerals ministry, Tinubu said it would boost economic resilience and reduce reliance on the volatile oil sector by creating alternative revenue streams.
In addition, he said the proposal would ensure regional equity by encouraging development in resource-rich, underserved areas, and boosting rural economies.
He said it would also support the processing and export of minerals and increase foreign exchange earnings.
Tinubu said the Bank of Agriculture recapitalisation would empower smallholder farmers and agribusinesses to improve their access to affordable credit. It is also expected to enhance agricultural productivity and support agro-industrial value chains, he said.
Additionally, he said the bank’s recapitalisation would lead to export competitiveness by promoting the export of high-value crops and reducing pressure on the naira.
