The House of Representatives on Thursday passed the proposed 2025 budget of N49.7 trillion for first and second readings following an extensive four-hour debate on its general principles during plenary.
President Bola Tinubu had presented the budget proposal to a joint session of the National Assembly on Wednesday. However, the late submission of the budget has raised doubts about the possibility of maintaining the January-to-December fiscal calendar.
The proposed budget outlines a total expenditure of N49.7 trillion, with statutory transfers allocated N4.4 trillion, debt servicing pegged at N16.3 trillion, recurrent (non-debt) expenditure set at N14.1 trillion, and N14.8 trillion earmarked for capital projects under the development fund. The proposal includes a deficit of N13.08 trillion, equivalent to 3.89 percent of GDP, alongside a projected exchange rate of ₦1,500 to the dollar and a base crude oil production estimate of 2.06 million barrels per day. These parameters remain subject to adjustments by the National Assembly during subsequent legislative deliberations.
During the debate, most lawmakers expressed support for the budget but highlighted concerns about specific provisions. A significant issue raised was the N16.3 trillion allocated for debt servicing, which many viewed as unsustainable. Some lawmakers also questioned the feasibility of the oil production projections and the executive’s capacity to implement the budget effectively.
Deputy Minority Whip George Ozodinobi (LP, Anambra) criticised the budget for allegedly neglecting key infrastructure projects in the South-East region, arguing that it further marginalised the area. He cited the Lagos-Calabar Coastal Highway and the Sokoto-Badagry Road as examples of legacy projects prioritized in other regions while similar projects in the South-East were overlooked.
Minority Leader Kingsley Chinda (PDP, Rivers) expressed doubts over the budget’s inflation projection of 15 percent, describing it as overly ambitious. He argued that addressing insecurity and achieving food security in the same fiscal year would be a significant challenge.
Oluwole Oke (PDP, Osun), who chairs the House Committee on Foreign Affairs, raised concerns about the inadequate allocation for Nigeria’s foreign missions. He noted that the N286 billion budgeted for the country’s missions is far below the N2 trillion estimated to run them effectively. Mr. Oke also called for action to address leakages in the financial system, highlighting the need for stricter enforcement of tax laws to curb evasion.
After hours of deliberations, the budget bill was put to a voice vote by Deputy Speaker Ben Kalu and received overwhelming support. Before ruling on the matter, Mr. Kalu directed that all newly created regional development commissions be granted equal funding to ensure fairness.
The budget proposal now moves to the Committee on Appropriations for further scrutiny and adjustments before the next stage of legislative action.
By Saifullahi Muhammad
