AT A GLANCE: N1trn to solid minerals, N1.5trn to BoA… Tinubu’s additional allocations in 2025 budget

President Bola Tinubu, on Wednesday, asked the national assembly to increase the proposed 2025 budget to N54.2 trillion.

The request will raise the proposed budget by N4.5 trillion as Tinubu previously asked the national assembly to approve N49.7 trillion for the fiscal year during his presentation in December 2024.

According to the letter seen by TheCable on Thursday, Tinubu said the increase is a result of revenue made by three major agencies.

The president said the government-owned enterprises (GOEs), the Federal Inland Revenue Service (FIRS) and the Nigerian Customs Service (NCS) made additional revenue of N4.53 trillion, which he proposed as an additional allocation within the 2025 appropriation bill.

He said it would 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: i. Government-Owned Enterprises (GOEs): N1.823.879 970.637, ii. Federal Inland Revenue Service (FIRS): N1,497,600 000.000. (Federal Government’s 52% share of the increase in revenue from N22.1 trillion to N25.1 trillion),” Tinubu said.

“iii) 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 bills total budget size will increase from N49.7 trillion to N54.2 trillion, demonstrating our commitment to inclusive growth and security.”

Here are the additions made to the proposed 2025 budget before the national assembly.

N1TRN TO SOLID MINIRALS

On January 10, Dele Alake said the ministry proposed a total budget of N541.7 billion for 2025, comprising N539.7 billion for capital expenditure — and N2 billion for overhead costs.

However, it received N9 billion budget envelope for capital expenditure, resulting in the national assembly joint committee on solid minerals rejecting the proposal, citing its inadequacy with the nation’s economic diversification goals.

The rejection of the budget was prompted by a motion introduced by Diket Plang (APC-Plateau) and supported by Natasha Akpoti-Uduaghan (PDP-Kogi).

In his motion, Plang criticised the reduction in allocation.

According to the latest proposal, Tinubu asked that the ministry’s budget be raised from N539.7 billion to N1 trillion — an addition of N460.3 billion.

Tinubu said the increase is “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”.

“Reduces reliance on the volatile oil sector by creating alternative revenue streams, encourages development in resource-rich, underserved areas, boosting rural economies, supports processing and export of minerals, and increases foreign exchange earnings,” the president said.

N1.5TRN BANK OF AGRICULTURE (BoA)

In the budget, Tinubu proposed an additional N1.5 trillion to the Bank of Agriculture (BoA), to transform Nigeria’s agricultural landscape, ensuring food security, and empowering smallholder farmers and agribusinesses.

“The recapitalisation of the BoA empowers smallholder farmers and agribusinesses, improving access to affordable credit,” Tinubu said.

“Enhances agricultural productivity and supports agro-industrial value chains and promotes the export of high-value crops, reducing pressure on the naira.”

On January 15, Abubakar Kyari, minister of agriculture and food security, said the recapitalisation of the BOA will be finalised by the end of the first quarter (Q1) of 2025.

Kyari said the initiative would enhance funding for smallholder farmers, addressing longstanding challenges in accessing financial support for commercial agriculture.

N500BN FOR RECAPITALISATION OF BANK OF INDUSTRY 

Also, based on the additional budget proposal, the Bank of Industry (BoI) will get N500 billion.

The president said the aim is to provide critical support to small and medium enterprises (SMEs), drive local manufacturing, and reduce dependence on imports.

CRITICAL INFRASTRUCTURE PROJECTS TAKE N1.5TRN 

Major infrastructural projects were also highlighted by the president for additional revenue. 

The projects are N380 billion for irrigation development (through River Basin Development Authorities), border communities infrastructure to get N50 billion, military barracks accommodation (N250 billion), and military aviation (N120 billion).

Also listed is transportation infrastructure (roads and rail), which received an additional N700 billion.  

The president said N300 billion will go for the construction and rehabilitation of critical roads and N400 billion will be used for light rail network development in urban centers.

He explained that the allocation of the investments will promote stability, diversify revenue, and catalyse economic growth.

Tinubu urged the national assembly to adopt and integrate the proposals into the 2025 appropriation bill.