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Tag: 2025 Budget

  • 2025 Budget Revised: N54.9 Trillion Approved with Key Adjustments

    2025 Budget Revised: N54.9 Trillion Approved with Key Adjustments

    The National Assembly has recalibrated the 2025 budget, making key adjustments to expenditure allocations while maintaining the overall budget size at N54.9 trillion. This decision, announced on Tuesday, follows a motion presented by Senator Adeola Olamilekan and Hon. Abubakar Kabir, chairpersons of the respective appropriations committees, citing the need for accuracy and alignment with national priorities.

    The initial budget passed on February 13th, has undergone revisions to address discrepancies in capital and recurrent expenditure. While the total expenditure remains consistent, the revised bill allocates N13.588 trillion to recurrent expenditure, a N524 billion increase. Correspondingly, capital expenditure has been adjusted downwards by the same amount, now standing at N23.439 trillion. This shift, as legislative sources suggest, reflects a necessary correction of technical errors in the original breakdown, particularly concerning funding for essential sectors like salaries, pensions, and operational costs.

    “The adjustments were crucial to ensure the budget accurately reflects our commitment to both efficient spending and developmental projects,” a source close to the appropriations committee told me. “We needed to strike a balance between meeting immediate needs and investing in the future.”

    This sentiment underscores the delicate balancing act lawmakers face. While capital expenditure drives long-term growth through infrastructure development and other key projects, adequate recurrent funding is crucial for maintaining essential government services and fulfilling obligations to public sector employees. The revised allocations suggest a prioritization of these immediate needs, perhaps reflecting current economic realities.

    The 2025 budget journey began with President Tinubu’s initial proposal of N49.7 trillion. This figure was later revised upwards to N54.2 trillion on February 5th, 2024, following projections of increased revenue from agencies like the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS). President Tinubu, in a letter to the National Assembly, detailed the expected contributions: N1.4 trillion from FIRS, N1.2 trillion from NCS, and N1.8 trillion from other government agencies. The final approved budget of N54.99 trillion represents a further increase following parliamentary deliberations.

    The approved budget breakdown reveals a complex fiscal landscape: Total Expenditure: N54.99 trillion; Statutory Transfers: N3.65 trillion; Recurrent (Non-Debt) Expenditure: N13.64 trillion; Capital Expenditure: N23.96 trillion; Debt Servicing: N14.32 trillion; and Fiscal Deficit: N13.08 trillion. The significant allocation to debt servicing highlights the ongoing challenge of managing Nigeria’s debt burden, a factor that inevitably influences budgetary decisions.

    The implications of these revisions are far-reaching. While the increased recurrent expenditure may provide some relief in critical sectors, the reduction in capital expenditure raises questions about the pace of infrastructure development. It remains to be seen how these adjustments will impact the lives of ordinary Nigerians, who rely on government spending for essential services and economic opportunities. The coming months will be crucial in observing the implementation of this budget and its ultimate effect on the nation’s economic trajectory. The bill is now awaiting President Tinubu’s assent.

  • 2025 Budget: Senate Rejects Information Ministry’s Budget, Demands Increased Funding

    2025 Budget: Senate Rejects Information Ministry’s Budget, Demands Increased Funding

    The Senate Committee on Appropriations has emphatically rejected the Federal Ministry of Information and National Orientation’s 2025 budget proposal, labeling it woefully inadequate.

    This decisive action, announced by Committee Chairman Senator Kenneth Eze during the Minister, Mohammed Idris’s budget defense, underscores the critical need for increased government support for public communication and national orientation.

    Senator Eze, expressing the committee’s unanimous stance, emphasized the ministry’s pivotal role in driving the President’s transformative agenda. “Last year,” he stated, “we strongly advocated for substantial funding for the information sector, recognizing its immense importance. Unfortunately, our recommendations were largely ignored. Now, the ministry returns with an even lower allocation, which we find utterly unacceptable.”

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    He continued, “The government must understand that effectively disseminating information and promoting national values requires adequate resources. We cannot, in good conscience, approve this grossly underfunded proposal. We have therefore returned the budget to the ministry, demanding a significant increase or facing the possibility of zero allocation.”

    Minister Idris, while acknowledging the ministry’s mandate to protect and defend Nigeria’s image, highlighted the 2024 initiatives aimed at enhancing public communication and citizen engagement. However, these efforts, crucial in today’s rapidly evolving information landscape, are severely hampered by inadequate funding.

    This rejection by the Senate sends a strong message to the government about the critical importance of investing in effective public communication. In an era of increasing information overload and the rise of misinformation, a well-funded and empowered Ministry of Information is not just desirable, it is essential for national development.

     

  • 2025 Budget: Labour Minister Seeks Budget Boost for National Skills Development Initiative

    2025 Budget: Labour Minister Seeks Budget Boost for National Skills Development Initiative

    The Minister of Labour and Employment, Muhammad Maigari Dingyadi, has called for an urgent increase in budgetary allocation, stating that the current N46 billion allocation falls short of achieving the ministry’s ambitious employment generation targets for 2025.

    In a decisive move to address Nigeria’s mounting unemployment challenges, Dingyadi presented his case before both the House Committee and Senate Committee on Employment, Labour and Productivity, emphasizing the critical need for enhanced funding to revitalize skills development centers nationwide.

    “The current allocation simply cannot support our vision for sustainable employment generation,” Dingyadi declared during the 2025 Budget Defence meetings in Abuja. “We’re looking at a comprehensive overhaul of our skills development infrastructure, which requires substantial investment.”

    The Minister’s appeal aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which positions job creation as a cornerstone of economic revival. Dingyadi highlighted a crucial distinction in employment strategies, noting that while infrastructure projects create immediate jobs, these positions are predominantly temporary and unskilled.

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    “Over 60% of infrastructure-related employment opportunities are unsustainable,” the Minister explained. “Our focus must shift toward creating skilled positions that offer long-term career prospects and contribute to national economic growth.”

    Senator Diket Planning, Chairman of the Senate Committee on Employment, Labour, and Productivity, voiced support for the Ministry’s request, acknowledging the need for increased funding to achieve its mandate effectively.

    The initiative has gained additional backing from Hon. Adefarati Adegboyega, Chairman of the House Committee on Employment, who emphasized the superiority of sustainable employment programs over temporary relief measures.

    “Palliatives offer momentary respite, but skill development creates lasting solutions,” Adegboyega stated. “We must invest in programs that equip our youth with practical skills for the modern job market.”

    The Ministry’s proposed budget would facilitate the renovation and modernization of skills development centers across Nigeria, providing essential training and starter packs for graduates to establish self-sustaining businesses.

    Industry experts suggest this approach could significantly impact Nigeria’s unemployment rate, currently one of the highest in sub-Saharan Africa. The focus on skills development aligns with global best practices in workforce development and economic growth strategies.

    As budget discussions continue, the outcome of this funding request could determine the trajectory of Nigeria’s employment landscape for years to come, particularly affecting the nation’s youth population seeking sustainable career opportunities.

  • Fire Service Budget Defense Halted Amid Discrepancies, Lawmakers Demand Transparency

    Fire Service Budget Defense Halted Amid Discrepancies, Lawmakers Demand Transparency

    The Federal Fire Service (FFS) faced a significant setback Friday when the National Assembly Joint Committee on Interior abruptly halted its budget defense session. Lawmakers committee, co-chaired by Senator Adams Oshiomhole and House of Representatives counterpart Abdullahi Aliyu Ahmed, expressed deep concern over glaring discrepancies in the agency’s 2025 budget proposal and its 2024 performance.

    “What you wrote contradicts what you are saying, and we hold you to your written statements,” Oshiomhole declared, highlighting a particularly alarming issue: the inconsistent pricing of firefighting trucks. Identical trucks, procured from the same company, were listed at vastly different prices – ₦1.5 billion in one instance and ₦2.5 billion in another.

    While FFS Controller General Jaji Abdulganiyu Idris attributed these discrepancies to variations in tanker sizes, lawmakers remained unconvinced. “This appears to be over-padding or over-invoicing,” Oshiomhole asserted, emphasizing the need for detailed explanations and supporting documentation.

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    The committee also raised serious concerns about ongoing projects, criticizing the lack of clear specifications and contractual commitments. The FFS 2025 budget proposal included a staggering ₦603 billion in projected outstanding payments, leaving lawmakers perplexed by the lack of clarity on these commitments.

    “We need to appreciate the difference between contract commitments and proposals,” Oshiomhole stressed. “Without proper documentation, this committee cannot approve your budget.”

    He emphasized the importance of fiscal responsibility, reminding the agency that “every ₦10 lost by MDAs, when multiplied across all agencies, becomes an alarming figure. We must ensure that the little drawn is properly distributed so that every Nigerian gets a sip, especially the poor.”

    Furthermore, the committee questioned the FFS’s ability to accurately report its revenue generation. Idris presented manual receipts as evidence, which the committee swiftly rejected as insufficient. Lawmakers demanded verifiable bank statements and supporting documentation from the Accountant-General’s office.

    Frustrated by the numerous discrepancies and the lack of transparency, the committee ultimately halted the budget defense session. “Work on your documents and submit a proper presentation to this committee,” Oshiomhole warned. “Otherwise, there will be zero allocation for the agency.”

    This incident underscores the lawmakers’ commitment to fiscal transparency and the efficient use of public funds. It serves as a stark reminder that public trust in government spending hinges on accountability and the responsible use of taxpayer money.

     

  • Ajaokuta Steel Project: Lawmakers Grill Minister Over Fresh Audit, Budget Irregularities

    Ajaokuta Steel Project: Lawmakers Grill Minister Over Fresh Audit, Budget Irregularities

    The Joint National Assembly Committee on Steel Development has expressed serious concerns over glaring irregularities within the Ministry of Steel Development’s 2024 budget. During a recent budget defense session, committee members, led by co-chairperson Zainab Gimba, highlighted significant issues, including allocations for vague “capacity-building programs” and “skills training initiatives” with no discernible evidence of execution or impact.

    Gimba expressed grave concerns about the potential for these funds to be misappropriated.

    “A first-hand appraisal of the 2024 submissions reveals budget infractions, such as funds allocated for programs that lack clear documentation of execution,” Gimba stated.

    “Administrative and recurrent costs have escalated significantly without corresponding improvements in ministry activities or outputs, raising serious questions about mismanagement or misallocation of funds.”

    The committee members were particularly alarmed by the discovery of several projects, especially those related to the long-awaited completion of the Ajaokuta Steel plant, that appear to have violated the Fiscal Responsibility Act, a cornerstone of financial governance in Nigeria.

    Citing breaches of the Public Procurement Act, Gimba pointed to instances of non-competitive bidding processes and inflated contract costs, strongly suggesting a lack of transparency and accountability. “There are ghost projects, a direct violation of Nigeria’s Financial Regulations,” she stressed, emphasizing the need for a thorough and independent forensic audit of all 2024 expenditures and contracts.

    Furthermore, the committee expressed deep dissatisfaction with the Ministry’s 2025 budget allocation, where a staggering 57.2% of the total budget is earmarked for personnel costs. This leaves a mere 34.6% for capital expenditure, a woefully inadequate sum for modernizing the critical steel sector.

    “Our committee is deeply displeased with the Ministry’s consistent communication failures and lack of sufficient information provided during budget defenses,” Gimba asserted. “If the legislature fails to rigorously scrutinize budgets, government accountability will be severely undermined. We will utilize all our statutory powers to ensure compliance.”

    Echoing these concerns, Committee Chairman Patrick Ndubueze emphasized the paramount importance of a robust steel sector for driving Nigeria’s industrial growth. “Nigeria cannot progress without a solid steel industry,” he declared. “We must prioritize capital investments over salaries. Repeating past mistakes is simply unacceptable.”

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    A key point of contention during the hearing was the Ministry’s decision to initiate a fresh technical audit of the Ajaokuta Steel plant despite three previous audit reports. Lawmakers expressed skepticism about the necessity of yet another audit, demanding clarity on why the findings of the existing reports had not been implemented.

    Minister of Steel Development Abubakar Audu defended the decision, arguing that the previous audits, conducted over a decade ago by different companies, no longer accurately reflected the current realities of the project. He highlighted the recent signing of a Memorandum of Understanding (MoU) with Russia for the plant’s completion, stating that the Russian consortium, in collaboration with Nigerian engineers, would conduct a new technical audit.

    “The tripartite MoU was signed in Moscow with Messrs, Tyazhpromexport (TPE), the Russian firm that originally built the Ajaokuta steel plant, and consortium partners,” Audu explained. “The consortium will conduct a fresh technical audit, a report of which will be submitted to the Federal Executive Council (FEC) for approval before work on the plant can commence.”

    However, lawmakers remained unconvinced. “You haven’t conducted the technical audit, yet you have already arrived for $2 billion,” questioned Committee member Natasha Akpoti-Uduaghan. “How did you arrive at this figure before completing the audit? We have three existing reports on previous audits carried out on Ajaokuta Steel. Why can’t we implement these existing reports? Why do we always sign new ones?”

    In response, Minister Audu acknowledged that the existing audits were conducted over a decade ago and by different entities, stating, “The reports will have to be bankable; we are involved with new partners, separate from those who worked on the existing reports.” He reassured the committee that the government had full confidence in the Russian consortium’s ability to effectively contribute to completing the Ajaokuta Steel plant.

    The hearing concluded with the Minister promising to address all the concerns raised by the committee regarding the Ministry’s 2024 budget performance and its projections for 2025. This episode underscores the critical role of legislative oversight in ensuring responsible and transparent government spending, particularly in crucial sectors like steel development, which are vital for Nigeria’s economic growth and industrialization.

  • ICYMI: Senate Projects ₦100 Trillion Budget for 2026 Amid Revenue Challenges

    ICYMI: Senate Projects ₦100 Trillion Budget for 2026 Amid Revenue Challenges

    The Nigerian Senate has projected a staggering N100 trillion aggregate expenditure for the 2026 fiscal year. This ambitious figure was revealed by Senator Solomon Ademola, Chairman of the Senate Committee on Appropriation, during a stakeholders’ interactive session on the 2025 Appropriation Bill.

    This revelation and projection towards the 2026 budget underscores the government’s ambitious plans for economic growth while acknowledging the significant hurdles in revenue generation.

    Ademola highlighted the ongoing efforts to free up government revenue currently held by organizations like the Nigerian National Petroleum Corporation (NNPCL).

    He emphasized, “A lot of revenue has been held hostage by no other person than organizations like the NNPCL who still believe that there are still some elements of subsidy that are being treated as an operational expense in their documents.”

    The Senator acknowledged the current challenges in meeting budgetary targets, stating, “We found out that we projected revenue of certain amounts and at the end of the day we can’t meet the target. To bridge the gap, we have to go and borrow. So it will add more to the deficit you are seeing.”

    However, Ademola expressed optimism about the future, stating, “By next year when we are gathered here, we will start having a budget of a minimum of about 100 trillion naira.”

    This projection, while ambitious, reflects the government’s determination to address critical infrastructure needs and stimulate economic growth.

    Senate President Godswill Akpabio emphasized the importance of making the 2025 budget a “living document” that prioritizes the welfare of Nigerians. He urged all stakeholders to collaborate and ensure that every naira spent is invested wisely in the nation’s prosperity.

    “This is not an ordinary assembly, and this is not an ordinary moment,” Akpabio declared. “For we are not gathered here merely as legislators, public servants, or citizens, but as custodians of Nigeria’s destiny, stewards of its promise, and architects of its future.”

    The 2026 budget projection underscores the significant economic challenges facing Nigeria. While the government aims for ambitious growth, addressing revenue constraints and ensuring efficient resource allocation will be crucial to achieving these goals.