2025 Budget Revised: Increased Recurrent Expenditure Sparks Debate

In a significant fiscal move, Nigeria’s National Assembly has revised the 2025 budget, elevating the total from the initially proposed ₦49.7 trillion to ₦54.2 trillion. This adjustment, prompted by President Bola Tinubu’s request, reflects additional revenues generated by key government agencies, including the Federal Inland Revenue Service and the Nigeria Customs Service.  

The revised budget notably increases recurrent (non-debt) expenditure by ₦524 billion, bringing it to ₦13.588 trillion. Conversely, capital expenditure has been reduced by over ₦500 billion, now standing at ₦23.439 trillion.  

Lawmakers defend the reallocation, citing the growing financial demands of governance, employee wages, and essential public services. The increase in recurrent spending aims to sustain government operations and meet salary obligations, ensuring effective administration and uninterrupted service delivery.

While proponents argue that the revision is necessary for maintaining governmental functions, critics express concern that the shift towards recurrent expenditure may impede infrastructure projects and economic progress. Analysts caution that an overemphasis on operational costs could strain public finances, advocating for a balanced approach between recurrent and capital spending.

The revised budget has been forwarded to President Bola Tinubu for approval. As the nation anticipates the President’s decision, discussions continue regarding the potential long-term impacts of the budgetary adjustments on Nigeria’s economic trajectory.