President Bola Tinubu on Friday signed the N54.99 trillion 2025 appropriation bill into law.
The total budget signed indicates a 99.96 per cent increase from the 2024 budget of N27.5 trillion.
The bill was approved by the National Assembly on February 13, after revisions to the initial budget proposal of N49.7 trillion.
A breakdown of the 2025 budget shows that it has a total expenditure component of N54.99 trillion, statutory transfers of N3.65 trillion, and a recurrent (non-debt) expenditure of N13.64 trillion.
Other components are capital expenditure: (N23.96 trillion), debt servicing (N14.32 trillion) and a deficit-to-gross domestic product (GDP) ratio of 1.52 per cent.
President Tinubu had earlier proposed a budget of N49.7 trillion for the fiscal year, which he presented to a joint session of the National Assembly on December 18, 2024
However, in February, he wrote to the National Assembly, requesting it to increase the proposed 2025 budget from N49.7 trillion to N54.2 trillion.
In his letter to the National Assembly, Tinubu stated that the increase was as a result of N1.4 trillion additional revenues made by the Federal Inland Revenue Service (FIRS), N1.2 trillion made by the Nigeria Customs Service and N1.8 trillion generated by some other government agencies.
Also in February, the National Assembly passed the budget but later rescinded its decision, citing the need to correct errors in the allocations to capital and recurrent expenditures.
The adjustment, which was prompted by a motion from Senator Adeola Olamilekan, Chairman of the Joint Committee on Appropriations, and Hon. Abubakar Kabir, Chairman of the House Appropriations Committee, led to a reallocation of funds.
The changes were necessitated by technical errors in the breakdown of allocations, particularly in priority sectors requiring additional funding for salaries, pensions, and overhead costs as well as the need to balance spending efficiency with developmental projects.
The revised bill allocated N13.588 trillion to recurrent expenditure, an increase of N524 billion, while capital expenditure was reduced by the same amount to N23.439 trillion.
Despite the revision, the overall budget size remained unchanged at N54.9 trillion.
The bill was, thereafter, transmitted to President Bola Tinubu for assent.
