The Nigerian Senate has taken a significant step towards approving the 2025 budget, by passing the N49.7 trillion "Restoration" Budget for second reading. This development comes after President Bola Tinubu presented the budget to a joint session of the National Assembly, outlining his vision for "securing peace and building prosperity".
The Senate has passed the N49.7tn ‘Restoration’ Budget for a second reading.
The budget was passed on Thursday after various deliberations on the bill’s general principles by senators who applauded the president for his good intentions for the country.
The budget was passed and referred to the Committee on Appropriations after being put to a voice vote by the Senate President, Godswill Akpabio, who presided over the session.
The Committee on Appropriations is chaired by Senator Solomon Adeola.
President Bola Tinubu had on Wednesday presented to a joint session of the National Assembly the budget, which he named, ““Restoration budget, securing peace and building prosperity.”
Tinubu commended the resilience of Nigerians amid growing economic indices.
President Bola Tinubu on Wednesday presented the 2025 Budget of Restoration to a joint session of the National Assembly, targeting peace and prosperity with a revenue projection of ₦34.82tn to fund the aggregate expenditure of ₦47.9tn.
In the proposed budget, which has a deficit of ₦13.0tn, Tinubu earmarked ₦4.91tn for Defence and Security, ₦4.06tn for Infrastructure, ₦3.5tn for Education, and ₦2.48tn for Health.
The President, in his budget speech, also disclosed that ₦15.81tn is allocated for debt servicing, with salient parameters including 2.06 million barrels of oil production per day, an exchange rate of ₦1,500 to a US dollar, and an inflation rate of 15%, down from the current 34.6%.
He said, “The numbers for our 2025 budget proposal tell a bold and exciting story of the direction we are taking to retool and revamp the socio-economic fabric of our society.
“In 2025, we are targeting ₦34.82tn in revenue to fund the budget.
“Government expenditure in the same year is projected to be ₦47.90tn, including ₦15.81tn for debt servicing.
“A total of ₦13.08tn, or 3.89 per cent of GDP, will make up the budget deficit.
“This is an ambitious but necessary budget to secure our future.
“The Budget projects inflation will decline from the current rate of 34.6 per cent to 15 per cent next year, while the exchange rate will improve from approximately 1,700 naira per US dollar to 1,500 naira and a base crude oil production assumption of 2.06 million barrels per day (mbpd).
“These projections are based on the following observations: (i) Reduced importation of petroleum products alongside increased export of finished petroleum products, (ii) Bumper harvests, driven by enhanced security, reducing reliance on food imports, (iii) Increased foreign exchange inflows through Foreign Portfolio Investments, and (iv) Higher crude oil output and exports, coupled with a substantial reduction in upstream oil and gas production costs.”
He informed federal lawmakers that a series of economic reforms being carried out by his government are yielding positive results, saying, “Our economy grew by 3.46 per cent in the third quarter of 2024, up from 2.54 per cent in the third quarter of 2023.
“Our Foreign Reserves now stand at nearly 42 billion US dollars, providing a robust buffer against external shocks.”
The bill seeks to authorise the issuance of the Consolidated Revenue Fund of the Federation of N49,740,165,355,396 for the 2025 fiscal year.
Tinubu had presented the budget of N49.7tn to a joint session of the National Assembly on Wednesday.
During Thursday’s plenary, the Senate Leader, Opeyemi Bamidele (APC, Ekiti Central), led a debate on the general principles of the 2025 appropriation bill.
Bamidele, in his lead debate, said the budget proposal demonstrated Tinubu’s commitment to stabilizing the economy, improving lives, and repositioning our country for greater performance.
He said the budget proposal experienced a significant increase of 74.18 per cent from the previous year’s budget and that with the increase, it would address infrastructural decay and developmental challenges in the country.
“The 2025 budget has seen a significant increase of 74.18%, reaching N47.9tn in nominal terms, signalling a bold fiscal strategy aimed at addressing persistent infrastructure gaps and development challenges.
“However, in dollar terms, the budget contracted by 23.22%, dropping from $36.7 billion in 2024 to $28.18 billion in 2025. This reduction in real value limits the potential impact of the budget on economic growth and the population’s well-being,” he said.
Bamidele emphasized that the budget proposal indicated the government’s direction in ensuring a peaceful and secure environment.
The senator noted that when the budget starts implementation next year, the inflation rate will drop from its current rate of 34.6 per cent to 15 per cent, and the exchange rate will improve from N1,700 to a dollar to N1,400 to a dollar.
He projected that there would be a reduction in the importation of petroleum products alongside increased export of finished petroleum products.
Bamidele also projected bumper harvests, increased foreign exchange inflows through Foreign Portfolio Investments, and higher crude oil output and exports, coupled with a substantial reduction in upstream oil and gas production costs.
He argued that the 2025 budget will “consolidate the key policies instituted to restructure our economy, boost human capital development, increase the volume of trade and investments, bolster oil and gas production, get our manufacturing sector humming again, and ultimately increase the competitiveness of our economy.”
He, therefore, urged his colleagues to support the passage of the 2025 budget proposal.
In his contribution, the Deputy Senate President, Barau Jibrin, commended the president for his political will in bringing prosperity to the country.
Jibrin, the senator representing Kano North Senatorial District, noted that the budget demonstrated the government’s intention to fight insecurity.
He said, “Peace is sine qua non for a sound economy, for a sound and up-and-doing society. And we all know the problems we are facing in terms of insecurity. Now, the government has taken steps to deal with it frontally. This is why defence and security got the highest allocation of N4.91 trillion. It shows the readiness of the government to deal with the problem of insecurity once and for all.”
He maintained that investors would be encouraged to establish themselves in the country when the country is secured.
Barau added, “What do you need after tackling insecurity? For a country that creates that environment of peace, what goes next is, of course, making a developing environment for the economy to thrive and for business – the private sector to thrive.
“And how do you do that? It’s by providing the necessary infrastructure. All the necessary infrastructures needed to be implemented, such as good roads, water, and power supply infrastructure.”
The senator representing Lagos East Senatorial District, Adetokunbo Abiru, commended the federal government for surpassing its projected revenue for 2024.
Abiru said projections in the 2025 budget are achievable, including the production of oil prices.
“The ability to stabilise the naira is also not in doubt. With the government’s plans, it will help tackle the inflation rate,” he added.
Abdul Ningi, Bauchi Central Senator, urged his colleagues to prioritize the interest of Nigerians when passing the budget.
“I received yesterday’s budget with very cautious optimism. The talking point now is not talking about what the government brought but what we can do as the parliament.
“The president has done his part, but the ball is in our court. How do our people feel? What is their economic situation? What about hunger? These are things that we should ask as a parliament. It is important that the president pays a lot of attention to insecurity.
“We should ensure that the 2025 budget is highly performed. We should ensure that our people have a better life.
Similarly, Asuquo Ekpenyong (APC, Cross-River South) commended Tinubu for the budget presentation.
Ekpeyong said the review of Nigeria’s economy has positively increased since Tinubu became president.
He added, “His review of 18 months of stewardship over the economy shows an improvement.”
The senator also commended the government for its achievements in foreign exchange reserves.
He noted, “Foreign exchange reserves have increased 42 billion dollars from almost a negative inheritance. Surpluses of N5.8tn, and we see economic growth in the country at 3.4, shooting past the project to a figure of 3.2 per cent.”
He demanded that the South-south Development Commission be included in the budget provision.
“For statutory transfers of the budget, there is no allocation for South-south. We can see that of the South-west Development Commission,” he added.
Osun East Senator Francis Fadahunsi said the proposed amount for defence in the budget is not enough to fight insecurity.
Fadahunsi criticized the exchange rate and said many of the budget projections are not achievable.
“There is going to be a lot of magic next year in the parliament to support the executive in achieving all these goodies,” the senator added.
In his comment, Senator Sadiq Umar (APC, Kwara North), said the budget is targeted at securing and restoring peace to the country.
Umar added that the only way to develop the country is to focus on the key lens that will develop the country.
Victor Umeh (LP, Anambra Central) questioned the government’s inflation projections for the budget.
“I was wondering how N1,500 to a dollar will bring down inflation, which is already at 30 per cent,” he said.
Abia North Senator Orji Kalu said the government needs to pay more attention to manufacturers and support the Bank of Industry for productivity.
Adamawa Central Senator Aminu Abbas said with the proposed amount for defence in the budget, the Nigerian military would get adequate funds to acquire security equipment.
He said, “With the provision for defence, the military needs to get adequate security equipment,” he said.
The senator advised the president to focus on funding for research in subsequent budgets.
After the debate, the Senate President, Godswill Akpabio, put the passage to the vote, and most senators supported it.
Akpabio subsequently passed the budget for a second reading and referred it to the Committee on Appropriations.
He directed the committee to report back to the Senate within four weeks.
The Senate President thereafter announced the adjourning of the plenary till January 14.