Nigeria's Senate has passed the 2025 budget for its second reading.
The budget, presented by President Bola Tinubu, amounts to N49.7 trillion and is notably smaller than the previous year's budget in dollar terms, reflecting a contraction of 23.22 percent from $36.7 billion in 2024 to $28.18 billion in 2025.
During Thursday’s plenary session, Senate Leader Opeyemi Bamidele led the debate on the general principles of the appropriation bill. He emphasized that the budget proposal demonstrates President Tinubu’s commitment to stabilizing the economy, improving lives, and repositioning Nigeria for greater performance.
"The 2025 budget has seen a significant increase of 74.18 percent, reaching N47.9 trillion in nominal terms," Bamidele stated, highlighting the government's bold fiscal strategy aimed at addressing infrastructure gaps and developmental challenges.
The budget, titled “Budget of Restoration: Securing Peace, Rebuilding Prosperity,” seeks to authorize the issuance of the Consolidated Revenue Fund of the Federation of N49.7 billion for the 2025 fiscal year. It was first read on the Senate floor on Wednesday, following its presentation to a joint session of the National Assembly by President Tinubu.
Senator Victor Umeh (LP, Anambra Central) raised concerns about the government's inflation projections, questioning how an exchange rate of N1,500 to a dollar would reduce inflation, which currently stands at 30 percent.
Meanwhile, Deputy Senate President Barau Jibrin commended the president for his political will in addressing insecurity, noting that "defence and security received the highest allocation of N4.91 trillion."
The budget also projects a reduction in the inflation rate from 34.6 percent to 15 percent and an improvement in the exchange rate from N1,700 to a dollar to N1,400 to a dollar.
Additionally, it anticipates increased foreign exchange inflows through Foreign Portfolio Investments, higher crude oil output and exports, and a substantial reduction in upstream oil and gas production costs.
Senator Asuquo Ekpenyong of Cross River South praised President Tinubu for the positive economic review since his tenure began, citing an increase in foreign exchange reserves to $42 billion. However, he called for the inclusion of the South-south Development Commission in the budget provision.
The Senate President, Godswill Akpabio, referred the budget to the committee on appropriation for further legislative action, with a report expected in four weeks.
As the debate concluded, senators expressed cautious optimism, urging their colleagues to prioritize Nigerian interests and ensure high performance of the 2025 budget to improve citizens' lives.
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