The House of Representatives has given its seal of approval to significantly revised budget frameworks for the 2024 and 2025 fiscal years. This crucial legislative action, taken during a plenary session on Tuesday, paves the way for a new financial blueprint aimed at aligning government spending with current economic realities.
Revised Figures and Presidential Request Granted
In a decisive move, the lawmakers passed the Repeal and Re-Enactment Appropriation Bill, which effectively replaces the 2024 budget of N35.06 trillion with a revised sum of N43.56 trillion. Simultaneously, the 2025 budget has been adjusted from an initial N54.99 trillion down to N48.31 trillion.
This legislative approval also grants President Bola Tinubu's formal request to extend the implementation period for the capital component of the 2025 budget. The new deadline for completing these capital projects is now March 31, 2026.
Breakdown of the 2025 Budget Allocations
The newly approved N48.32 trillion budget for 2025 is structured to address key national priorities. The breakdown provided by the executive and adopted by the House is as follows:
- Statutory Transfers: N3.64 trillion
- Debt Service: N14.31 trillion
- Recurrent (Non-Debt) Expenditure: N13.58 trillion
- Capital Expenditure: N16.76 trillion
Hon. Abubakar Kabir Abubakar, Chairman of the House Committee on Appropriations, presented the report after extensive consultations. The committee engaged with the President's economic team, including Finance Minister Wale Edun and Budget Minister Atiku Bagudu, to understand the rationale behind the budget overhaul.
Driving Fiscal Clarity and Accountability
President Tinubu framed this legislative action as a cornerstone of broader fiscal reforms. The primary goal is to eliminate the confusion and overlaps caused by having multiple budgets running concurrently. This practice, as acknowledged during the plenary, has historically undermined budget clarity and weakened fiscal discipline.
A notable adjustment was the reduction of N16.76 trillion from the original 2025 capital allocation. This sum has been rolled over to the 2026 fiscal year due to identified funding constraints. The initiative is designed to create a more effective budget, streamline governance expenditure, and leverage anticipated revenue increases in the coming year.
The bill establishes a strict legal framework for fund management. It mandates that the Accountant-General of the Federation can only disburse money from the Consolidated Revenue Fund upon warrants issued by the Finance Minister, and strictly for purposes outlined in the Act.
Furthermore, to enhance transparency, all Ministries, Departments and Agencies (MDAs) are required to submit quarterly reports to the National Assembly. These reports must detail internally generated revenue and any foreign or domestic grants received. The bill also includes provisions for documenting excess revenue from sources like crude oil sales above the benchmark, which can only be spent with legislative approval.
The passage of this bill repeals the existing 2024 and 2025 Appropriation Acts and authorises fresh withdrawals from the nation's Consolidated Revenue Fund, setting a new course for government spending through the end of 2025.
