Experts React to Tinubu’s N54.9 Trillion 2025 Budget Adjustment
In December 2024, President Bola Ahmed Tinubu presented a N49.7 trillion budget proposal to the National Assembly.
However, on February 5, 2025, he requested an additional N4.5 trillion, raising the total to N54.9 trillion.
The budget breakdown includes:
- N3.6 trillion for statutory transfers
- N14.3 trillion for debt servicing
- N13.1 trillion for recurrent expenditure
- N24 trillion for capital projects
While the Senate approved the budget on February 13, economic experts and stakeholders are debating its potential impact.
Why the Budget Increased
In his letter to the National Assembly, Tinubu justified the increase by citing additional revenues from:
✅ Federal Inland Revenue Service (FIRS) – N1.4 trillion
✅ Nigeria Customs Service (NCS) – N1.2 trillion
✅ Other government agencies – N1.8 trillion
Senate President Godswill Akpabio assured that the budget deliberation would be completed before the end of February, leading to its passage last week.
Will This Budget Fuel Inflation or Economic Growth?
Opinions remain divided on the budget’s implications.
Optimistic Views: More Infrastructure, More Growth
David Etim, President of the Calabar Chamber of Commerce and Industry (CALCCIMA), believes the increase could be beneficial if spent wisely.
“If the additional N5 trillion is directed toward infrastructure, it will be a game-changer. However, if funneled into recurrent expenditure, it will fuel inflation,” he said.
Etim emphasized that improving roads and infrastructure would help manufacturers by easing transportation and increasing demand for goods.
Concerns Over Inflation and Poor Allocation
On the other hand, Daniel Dickson-Okezie, an SME expert and member of the Lagos Chamber of Commerce and Industry (LCCI), criticized the low ratio of capital to recurrent expenditure.
“Developed economies prioritize capital projects over recurrent expenses. Nigeria must do the same to avoid wasteful spending.”
He stressed that capital expenditure on roads, power, and industries could create jobs and improve living standards, unlike recurrent spending that only sustains government operations.
Should the Money Have Been Used for the 2024 Budget?
A former House of Representatives member, Yusuf Mohammed, questioned why Tinubu didn’t use the extra funds to fully implement the 2024 budget before rolling them into 2025.
“If we haven’t implemented the 2024 budget 100%, why not use the extra revenue to complete ongoing projects instead of increasing next year’s spending?” he argued.
He pointed out that revenue agencies are already performing better and should generate even more funds in the coming years.
Political Strategy or Genuine Economic Plan?
Mohammed suggested that Tinubu’s budget hike might be more of a political move than an economic necessity.
“This is about optics—making the government look good rather than making the most strategic financial decision.”
What’s Next?
With Nigerians facing economic hardships, the government’s ability to properly implement this budget will determine whether it leads to growth or higher inflation.
The focus must be on infrastructure, job creation, and long-term investments rather than just recurrent spending.
What Do You Think?
Will this budget drive economic growth or worsen inflation? Drop your thoughts in the comments!
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