Why FG jacked up 2025 budget to N54.2tr – Bagudu

The Federal Government on Wednesday explained that the increase of the 2025 budget from N49.7 trillion to N54.2 trillion is to have more revenue to strengthen the Bank of Agriculture (BOA), and Bank of Industry (BOI) and to support the diversification programme by putting more money in the solid minerals sector as well as infrastructure projects.

Minister of Budget and Economic Planning, Senator Atiku Bagudu, disclosed this to Newsmen shortly after he saw off President Bola Tinubu at the Nnamdi Azikiwe Airport, Abuja, en route to France.

Specifically, an additional N4.5 trillion was added to the 2025 Appropriation Bill currently undergoing legislative treatment at the National Assembly for consideration and passage.

Explaining the upward adjustment to the budget figure, the Minister said it was established that the government-owned enterprises including the Nigeria Customs Service, NCS, can contribute more revenue.

He said: “You will recall Mr President submitted N49 trillion budget to the National Assembly and legislative work commenced.

“The legislative work continued with interactions between the executive and the national assembly. The National Assembly and the Economic Management Team continued to interrogate all figures.

“In that process, the Senate Committee on Appropriation, Senate Committee on National Planning, and Senate Committee on Finance established that we can generate more revenue by tasking all the institutions to do more and the Federal Inland Revenue Service confirmed the ability to do more than was submitted.

“Equally, it was established that the government-owned enterprises can contribute more revenue, and the Customs Service. So additional revenue amounting to over 4.5 trillion naira was established and this was taken to the President.

READ ALSO:Bagudu begs CBN to increase investment in agriculture

“And guided that this additional revenue should be used to further strengthen the Bank of Agriculture, Bank of Industry, support the diversification programme by putting more money in the solid minerals sector as well as infrastructure projects.”

On the adjustment of the Medium Term Expenditure Framework, MTEF, Senator Bagudu said: “Recall that even when the budget was submitted, MTEF was amended. The MTEF that was initially approved was for a budget of less than 49 trillion naira so it goes together and so the consequential amendment to the MTEF will certainly follow.”