.Financial experts opt for effective budget implementation
.Say financial prudence required for economic growth
.Why we increased proposal from N49.7trn to N54.2trn — FG
.As President jets out to France for private visit, attends AU Summit in Ethiopia
CHIGOZIE AMADI
Worried over the poor implementation of budgets over the years, experts in the nation’s financial sector have faulted President Bola Tinubu’s letter to the Senate, requesting an increase in the 2025 budget from N49.7 trillion to N54.2 trillion.
They maintained that the N54.2 trillion budget is not adequate for Nigeria based on the present economic situation.
President Bola Tinubu Wednesday, formally wrote to the Senate, requesting an increase in the 2025 budget from N49.7 trillion to N54.2 trillion.
Tinubu’s letter was read during Wednesday’s plenary session by Senate President Godswill Akpabio.
According to the Senate President, the proposed increase stemmed from additional revenues as follow: N1.4 trillion from the Federal Inland Revenue Service (FIRS), N1.2 trillion from the Nigeria Customs Service, N1.8 trillion generated by other government-owned agencies.
But speaking in an interview with Daily Champion, Managing Director/Chief Executive, Maxifund Investments and Securities Plc. Mazi Okechukwu Unegbu maintained that the addition is inadequate for the nation.
Mazi Unegbu said the addition portends nothing because of the policies introduced by the present administration before now.
He urged the federal government to explain to Nigerians where that is going to be applied, adding that there is need for effective monitoring.
“When I was looking at it, I did not see why that request was made, even the N54.2 trillion budget is not adequate for Nigeria based on what the President has done, removal of the fuel subsidy as well floating of the currency.
“So even with that budget, it is inadequate because the poverty level and unemployment level are not being addressed with the budget. I believe that even when it is passed into law, some of it may be looted by some politicians, so I don’t see it as wise.
“Even if we see it as wise, its use was not properly explained, it is rather unfortunate.
“It portends nothing because of the Policies before that introduction, I don’t see the value to Nigeria. I can only see the value if he tells us exactly what areas of the economy it is going to be applied,” Unegbu said.
He maintained that even the 2024 budget is still been debated about because it has not been fully implemented.
Speaking further, Unegbu maintained that capital projects are not been implemented in Nigeria.
“So we should be told where that is going to be applied, not just making it and then keeping quiet and Nigerians will just take it like that. Of course the National Assembly will ask question because the President has submitted it, they will just approve,” Unegbu stated.
Also speaking, a former President, Association of National Accountants of Nigeria (ANAN), Dr. Samuel Nzekwe maintained that Nigeria should be having a budget size of N100 trillion now, in order to address the present challenges.
He however, urged the federal government to pay attention to the health sector and see how to moderate inflation regarding drugs.
According to him, adequate attention should be paid to the key sectors, which are education, health care and agriculture, stressing that the additional N4.5 trillion should not go into consumption.
He said, the government should make sure the budget does not go into consumption.
Meanwhile, President Bola Tinubu has increased the proposed total budget size for 2025 from N49.7trillion he presented to the joint session of the National Assembly on December 18, 2024 to N54.2trillion .
Tinubu announced an increase in the 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 by the Nigeria Customs Service and 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.
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 smallholder 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.
.As President jets out to France for private visit, attends AU Summit in Ethiopia
In another development, President Bola Tinubu will depart Abuja on Wednesday for Paris, France, on a private visit before heading to Addis Ababa, Ethiopia, for the upcoming African Union (AU) Summit.
This was disclosed in a statement signed by Bayo Onanuga, Special Adviser to the President on Information and Strategy.
According to the statement, President Tinubu will participate in the 46th Ordinary Session of the Executive Council and the 38th Ordinary Session of the Assembly of the AU Heads of State, scheduled to take place from February 12th to 16th, 2025, in Addis Ababa.
The summit is expected to focus on key issues affecting the continent, including economic integration, security, climate change, and governance. President Tinubu is likely to engage in high-level discussions with fellow African leaders on regional cooperation, trade, and development initiatives.
Before arriving in Addis Ababa, President Tinubu will make a stop in France, where he is scheduled to meet with French President Emmanuel Macron. Their discussions are expected to cover bilateral relations, trade partnerships, and investment opportunities between Nigeria and France.
“President Bola Ahmed Tinubu will depart Abuja on Wednesday for Paris, France, on a private visit en route to Addis Ababa, the Ethiopian capital,” the presidential statement said.
The AU Summit will also provide President Tinubu an opportunity to reaffirm Nigeria’s commitment to Africa’s economic growth, regional stability, and the implementation of the African Continental Free Trade Area (AfCFTA).
The AU theme for 2025, “Justice for Africans and People of African Descent Through Reparations,” will officially be launched by Heads of State and Government during the 38th AU Summit in February 2025.
This theme was decided upon at the 37th Ordinary Session of the Assembly of the Union held in February 2023 in Addis Ababa, Ethiopia.
As part of the pursuit of justice and equity, the conversation around reparations has gained prominence, emerging as a critical and transformative dialogue that demands the collective attention and action of Africans and people of African descent worldwide.
According to the AU’s official website, the 38th African Union Summit will focus on Reparatory Justice and Racial Healing under this theme, highlighting the need for concrete steps toward addressing historical injustices.
