The Senate on Thursday passed the second reading of the 2025 proposed budget, following an intense debate on its general principles. The budget, titled “Budget of Restoration: Securing Peace, Rebuilding Prosperity,” seeks to authorize the issuance of N49.7 trillion from the Consolidated Revenue Fund for the 2025 fiscal year.
President Bola Ahmed Tinubu presented the budget to a joint session of the National Assembly on Wednesday, highlighting its focus on stabilizing the economy, addressing infrastructural challenges, and ensuring security across the country.
Key Features of the Budget
During the plenary, Senate Leader Opeyemi Bamidele, who led the debate, noted that the proposed budget demonstrates a commitment to economic recovery. While the budget shows a significant nominal increase of 74.18% from 2024, rising to N49.7 trillion, its real value has dropped by 23.22% in dollar terms, contracting from $36.7 billion in 2024 to $28.18 billion in 2025.
Bamidele explained that the reduction in dollar terms reflects the depreciation of the naira and poses challenges to the budget’s potential impact on economic growth and citizens’ welfare.
He projected that the implementation of the budget would reduce the inflation rate from 34.6% to 15% and strengthen the naira from N1,700 to N1,400 per dollar. Bamidele also emphasized plans to boost crude oil exports, reduce petroleum importation, and enhance foreign exchange inflows.
Security and Infrastructure Priorities
The Deputy Senate President, Barau Jibrin, lauded the allocation of N4.91 trillion to defence and security, the highest sectoral allocation in the budget. Jibrin stressed that tackling insecurity is essential for fostering a conducive environment for investment and economic growth.
Similarly, other senators praised the focus on infrastructure development, citing its importance in reviving the manufacturing sector, improving trade, and bolstering economic competitiveness.
Mixed Reactions to Projections
While many senators commended the government’s fiscal strategy, some expressed skepticism about the feasibility of the projections. Bauchi Central Senator Abdul Ningi urged lawmakers to prioritize the interests of Nigerians, citing concerns about hunger and economic hardship.
Osun East Senator Francis Fadahunsi criticized the exchange rate assumptions and argued that the defence allocation might be insufficient to address insecurity. Anambra Central Senator Victor Umeh also questioned the inflation projections, expressing doubts about achieving the targets within the current economic framework.
Next Steps
After robust deliberations, the Senate President, Godswill Akpabio, referred the budget to the Committee on Appropriation for further legislative scrutiny. The committee has been tasked to submit its report within four weeks.
As the legislative process progresses, stakeholders will be watching closely to see how the 2025 budget addresses Nigeria’s economic and security challenges while fulfilling its promise of restoration and prosperity.
By Saifullahi Muhammad
