THE HOUSE of Representatives has approved Nigeria’s 2025 budget, setting government spending at an unprecedented ₦54.99 trillion. While the budget reflects the country’s growing fiscal obligations, particularly in debt servicing.
The Explainer gathered that the budget, passed on Thursday, increased by ₦700 billion from the ₦54.2 trillion initially proposed by President Bola Tinubu. The additional allocation was reportedly necessitated by increased funding requests from key government agencies, including the Independent National Electoral Commission (INEC), the Department of State Security (DSS), and the National Drug Law Enforcement Agency (NDLEA), among others.
A closer look at the budget breakdown shows that a significant portion—₦14.317 trillion—has been allocated for debt servicing. This figure underscores Nigeria’s ongoing challenge of managing its debt burden, as borrowing remains a major component of government financing.
Statutory transfers, which ensure funding for constitutionally mandated agencies, stand at ₦3.645 trillion, while ₦13.64 trillion is earmarked for recurrent expenditure, covering government salaries, overheads, and operational costs. The largest share—₦23.963 trillion—is allocated to capital projects under the development fund to boost infrastructure and drive economic growth.
The Explainer notes that debt servicing alone accounts for over 26% of total spending, raising concerns among analysts about the sustainability of Nigeria’s debt profile. With increasing government borrowing, questions persist on how the administration balances fiscal responsibility with economic development.
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The Chairman of the House Committee on Appropriations, Abubakar Bichi, highlighted concerns over the delayed submission of the 2025 budget compared to its 2024 counterpart. While presenting the appropriation bill for consideration, he acknowledged that the committee engaged extensively with the Presidential Economic Planning team to scrutinize revenue projections and expenditure allocations.
Bichi urged the executive to ensure timely submission of future budgets to the National Assembly, stressing the importance of maintaining Nigeria’s January-to-December budget cycle. He proposed that subsequent budgets be transmitted at least three months before the financial year begins, allowing ample time for legislative review and approval.
President Tinubu had initially proposed a ₦49.7 trillion budget, later increasing it to ₦54.2 trillion before final approval at ₦54.99 trillion.
The Explainer gathered that the increase was attributed to additional revenue generated by key government agencies, though specific details on revenue sources remain unclear.
