Nigeria has unveiled its largest budget in 65 years, with a proposed ₦54.99 trillion for 2025, marking a 56.89% increase from 2024’s ₦35.05 trillion. Dubbed the “Budget of Restoration” by President Bola Tinubu, the budget prioritizes economic stabilization and growth through significant investments in security, infrastructure, and social programs. However, concerns remain about Nigeria’s ability to finance these ambitious plans, given its history of revenue shortfalls and growing debt dependency.
A large portion of the budget is allocated to security, with ₦6.11 trillion earmarked to combat terrorism and banditry. Infrastructure projects, including the Lagos-Calabar Coastal Highway and Sokoto-Badagry Superhighway, are set to receive ₦5.99 trillion, a significant increase aimed at boosting trade and job creation. Additionally, ₦5.7 trillion is dedicated to education, healthcare, and skills development, while agriculture and food security will receive ₦3.73 trillion to address rising food prices. However, experts warn that the lack of proper implementation could undermine these initiatives.
Despite these grand plans, Nigeria faces an ongoing debt dilemma, with debt servicing alone set to consume ₦16.3 trillion, almost doubling last year’s amount. The government anticipates a 123% increase in revenue to ₦36.35 trillion, largely through improved tax collection and foreign investments. However, analysts from the Nigerian Economic Summit Group caution that these revenue projections may be overly optimistic, given the country’s track record of missing fiscal targets.
While the budget includes crucial spending on infrastructure, lawmakers’ allocations and the State House budget have raised concerns about excess spending on non-essential government operations. Social welfare programs for the public remain underfunded, leaving millions of Nigerians struggling with high inflation and unemployment. The effectiveness of these initiatives will largely depend on their execution, transparency, and the government’s ability to curb waste and corruption, ultimately determining if this budget can indeed deliver the promised restoration or lead to further financial strain.
SOURCE: BUSINESS DAY