Nigeria’s 2025 Budget: A Bold Spending Plan Amidst Rising Costs and Deficit Concerns
The Federal Government of Nigeria has unveiled an ambitious N49.70 trillion budget for 2025, titled the “Budget of Restoration: Securing Peace, Rebuilding Prosperity”. President Bola Tinubu presented the proposal to the National Assembly on Wednesday, outlining plans that heavily prioritise defence, infrastructure, and human capital development. However, the budget reveals a stark financial reality: rising costs of governance and a growing dependence on borrowing.
An analysis of the 2025 Appropriation Bill indicates that N8.52 trillion will be spent on personnel and pension costs for federal workers—a 59.16% increase from the N5.35 trillion allocated in 2024. Salaries alone will consume N7.54 trillion, up from N4.79 trillion the previous year. When combined with the N16.33 trillion earmarked for debt servicing, these expenses account for 53.98% of the total budget, leaving little room for discretionary spending.
The government’s growing debt burden has become a cause for concern, with debt servicing exceeding personnel and pension costs. The projected N13.39 trillion deficit will be financed through borrowing, underscoring Nigeria’s precarious fiscal position.
Beyond these headline figures, the budget details include some eyebrow-raising allocations. For instance, the State House will spend N15.09 billion on tyres for bulletproof vehicles, operational cars, and other related expenses, alongside N5.49 billion for the annual maintenance of the Presidential Villa. Allocations for the purchase of SUVs and security vehicles total billions, raising questions about the government’s prioritisation amidst a looming fiscal crisis.
In the health sector, professional councils such as the Medical and Dental Council of Nigeria (MDCN) and the Pharmacy Council of Nigeria (PCN) will receive N21.04 billion collectively. However, this funding comes against the backdrop of a federal directive to phase out budgetary allocations to professional bodies by 2026, shifting them toward self-sufficiency.
Meanwhile, the Federal Ministry of Agriculture and Food Security has allocated N54.38 billion to federal universities of agriculture, representing 8.4% of its total N636 billion allocation. While stakeholders like Dr Moses Ogah from Joseph Sarwuan Tarka University, Makurdi, commend this move as a positive step toward addressing food security challenges, concerns linger about the effective utilisation of these funds.
“This allocation has the potential to transform agricultural education and address food inflation, but strategic implementation is key,” Ogah remarked. With food inflation currently at 37.7%, he called for investments in critical infrastructure such as hatcheries, processing industries, and livestock facilities.
President Tinubu remains optimistic, projecting a decline in inflation from 34.6% to 15% and an improved naira exchange rate of N1,500 per dollar. However, achieving these economic targets will depend heavily on prudent fiscal management and effective execution of the budget’s priorities.
As Nigeria embarks on this bold fiscal journey, the nation stands at a crossroads—balancing the urgent need for development with the growing weight of its financial obligations.
