Twenty four hours after presentation of the N49.7trillion 2025 budget to the joint session of the National Assembly by President Bola Tinubu, the Senate and House of Representatives separately passed the Bill for second reading.
Consequent upon this, the two chambers adjourned plenary to Tuesday, January 14, 2025.
Passage of the N49.7trillion 2025 budgetary proposal for second reading by the Senate followed lead debate made on its general principles by the Senate Leader, Senator Michael Opeyemi Bamidele and contributions from 42 other senators.
The proposed aggregate expenditure for the 2025 fiscal year were broken down to include Statutory transfers of N4.4 trillion, Debt servicing of N16.3 trillion, Recurrent (non-debt) expenditure of N14.1 trillion, and Capital expenditure of N14.8 trillion (to the development fund), leaving a deficit of N13.08 trillion, representing an equivalent o 3.89 percent to the country’s GDP.
The budget was further drawn on an exchange rate of ₦1,500 to a dollar and crude oil production projection at 2.06 million barrels per day (mbpd).
…Debate proper
In his lead debate, Senator Bamidele said the budget proposals christened, “Budget of Restoration: Securing Peace, Rebuilding Prosperity “strikes at the very core of the Renewed Hope Agenda and demonstrates President Tinubu’s administration’s commitment to stabilizing the economy, improving lives, and repositioning our country for greater performance.”
He said: “The 2025 budget has seen a significant increase of 74.18%, reaching N49.7 trillion in nominal terms, signalling a bold fiscal strategy aimed at addressing persistent infrastructure gaps and development challenges. However, in dollar terms, the budget contracted by 23.22%, dropping from $36.7 billion in 2024 to $28.18 billion in 2025.
“This reduction in real value limits the potential impact of the budget on economic growth and the well-being of the population.
“It is important to note at the outset, that this proposal is not strange to us here in the National Assembly having approved the 2025 – 2027 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP).
“What remains for us is to closely examine the contents and the details in order to sort things out and smoothen the rough edges.
He added that the basic highlights of the budget are ÷ Oil Price Benchmark of 75 US Dollars per barrel; Daily oil production estimate of 2.06 million barrels per day (mbpd); Exchange rate of 1,500 Naira per US Dollar; a total of 13.08 trillion naira or 4.6 percent of GDP; and 15.75 percent inflation rate.”
The budget as presented Wednesday by President Tinubu has N49.7trillio as total expenditure profile, projected revenue of N34.82 trillion, fiscal deficit of N13.08 trillion etc.
All the 43 senators who contributed to debate on the general principles submitted that assumptions and parameters of the budget were realisable.
Specifically, the Deputy Senate President Barau Jibrin in his contribution said: “This budget has a lot of goodies when we all work together and support the executive arm of government because it’s not an issue about our government alone. It’s an all-inclusive arrangement. We should all be part of the whole thing. The citizens should also be part of it.
“For us here, we need to oversight properly. All our relevant committees should work to make sure that when this budget passes, we keep all those responsible for the implementation of whatever is in this budget on their toes so that they work in the best manner possible to actualise what is in this budget – one of the best budgets we have produced in this country.
“But now, what we need to do after the passage is all come around to make sure that we do all that is humanly possible to ensure that it’s fully implemented. I’m sure by the time we implement this budget, this country will turn into a land of El Dorado, a land of plenty and prosperity.”
The Senate, accordingly, passed it for second reading and mandated its committee on appropriation to work on it at committee level and report back in four weeks’ time.
…Reps too
Similarly, the Green Chamber passed the Appropriation Bill for second reading.
Several members spoke on the Bill, with the majority agreeing that it was a very “ambitious” proposal, even as others faulted the parameters on which the budget was based, saying they appeared very unrealistic.
Majority Leader of the House, Hon. Julius Ihonvbere, who opened the debate, explained that President Tinubu admitted during the budget presentation that Nigerians were going through rough times, but that Nigerians were seeing a government that is ready to refocus on economy.
He said the budget had made adequate provision for the education sector as well as security, health and infrastructure, adding that with the determination of the government, the country will soon begin to see foreign investments in the country.
The lawmaker commended the government on its plan to reduce inflation to 15 percent in 2025, noting that the target was realisable if all Nigerians contribute their quota as necessary.
Former Deputy Speaker House of Representatives, Ahmed Idris Wase, in his submissions said: “We should follow up the utilisation of the security budget to ensure value for money”, calling for the speedy passage of the budget to ensure that what is allocated to the various constituencies are implemented.
However, Hon. Jeremiah Umoru questioned the criteria adopted in allocating money to the South West Development Commission, which he noted, had no board constituted, while the North Central and South South Development Commission whose establishment bills were currently with the President were left out.