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The Nigerian government has approved an increase in the 2025 budget from N49.7 trillion to N54.2 trillion, citing enhanced revenue streams through FIRS, Customs, and government enterprises. This increase will be allocated to critical sectors like agriculture, infrastructure, and security, despite a projected N13.39 trillion deficit.

The Nigerian government has revised the 2025 national budget, increasing it from N49.7 trillion to N54.2 trillion. This adjustment comes as a result of collaborations between the executive and legislature to identify new sources of revenue. Key revenue-generating bodies like the Federal Inland Revenue Service (FIRS), Customs, and government enterprises are projected to contribute an additional N4.5 trillion to the national coffers.

Atiku Bagudu, the Minister of Budget and Economic Planning, explained that this extra revenue would be directed towards critical sectors such as agriculture, infrastructure, defense, and education, in line with President Bola Tinubu’s vision for national growth. The increase in budget allocation reflects a 41.9% rise from the previous year’s N35 trillion, with a projected deficit of N13.39 trillion. This deficit will be financed through a combination of debt, loans, and asset sales.

While this ambitious budget strategy is expected to drive economic diversification and support long-term infrastructure projects, it also comes with challenges. Bagudu confirmed that amendments to the Medium-Term Expenditure Framework (MTEF) would align with the larger fiscal plan. In addition, President Tinubu has emphasized that the key focus areas for the budget include strengthening the nation’s defense and security, improving education, and stabilizing the economy by reducing inflation, and securing a more stable exchange rate for the naira.