ABUJA – Nigeria’s Senate has approved the 2025 Appropriation Bill, a massive ₦54.99 trillion spending package, setting the stage for the government’s financial priorities in the coming year. The bill passed on Thursday in the Senate chamber.
What’s inside this substantial budget? Here’s a quick breakdown:
- Total Spending: ₦54.99 trillion
- Statutory Transfers: ₦3.65 trillion (Funds allocated to specific bodies, like the Judiciary)
- Running Costs (Non-Debt): ₦13.64 trillion (Salaries, overhead, etc.)
- Infrastructure & Projects: ₦23.96 trillion (Roads, bridges, and other development projects)
- Paying Down Debt: ₦14.32 trillion
- Budget Gap: ₦13.08 trillion (The difference between spending and revenue)
- Deficit/GDP Ratio: 1.52% (How much of the country’s economic output the deficit represents)
The final figure is higher than President Bola Tinubu’s initial ₦49.7 trillion proposal. Why the jump? Increased revenue expectations. The Federal Inland Revenue Service (FIRS) expects to collect an extra ₦1.4 trillion. The Nigeria Customs Service (NCS) projects an additional ₦1.2 trillion. Analysts project other government agencies will generate an additional ₦1.8 trillion.
The 2025 Appropriation Bill outlines where the government plans to spend money: from everyday operating expenses to major infrastructure projects. It also acknowledges a significant budget deficit, meaning the government will need to borrow to cover its spending.
This spending plan will probably affect several areas, including job creation, infrastructure development, and potentially, the national debt.
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