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Tag: 2025 Appropriation Bill

  • Reps pledge rigorous scrutiny of 2025 appropriation bill

    Reps pledge rigorous scrutiny of 2025 appropriation bill

    Deputy Spokesman of the House of Representatives, Philip Agbese (APC, Benue), has assured Nigerians that the House will adopt stringent measures in reviewing the 2025 Appropriation Bill to ensure it advances the nation’s interests.

    Speaking on Tuesday, Agbese emphasized that the parliament is committed to thoroughly examining the budget proposal submitted by President Bola Tinubu.

    Meanwhile, on Monday, January 6, 2025, the Chairman of the House Committee on Appropriations, Abubakar Bichi, met with other committee chairmen ahead of the budget defense sessions with Ministries, Departments, and Agencies (MDAs) scheduled to begin Tuesday.

    Bichi reiterated that while the executive is responsible for proposing the budget, the National Assembly, as an independent arm of government, will thoroughly scrutinize the estimates before passage.

    “Like we did in 2024, we will be guided by the needs of the nation in arriving at a final estimate that we will pass and transmit to the President for his assent.”

    Agbese emphasizing the readiness of the House to work on the Appropriation Bill, day and night to ensure the timely passage of the  budget.  

    “Last year, we cut short our holiday to work on the 2024 budget. This is already playing out again as we have commenced the defense of the 2025 budget estimates starting with the Ministries, Departments and Agencies.

    “The 10th House led by the Speaker, Tajudeen Abbas is committed to the welfare of Nigerians. As a result, it is prepared to work relentlessly on the proposal to ensure that the budget work for the nation.

    “As a House, we have no other interest apart from our collective national interest. All we are interested in is the good of our country and fellow Nigerians. So, as we embark on this important exercise, we will look at critical sectors of the economy capable of stimulating economic growth and act accordingly.

    “Of course, you know that the security of our beloved country has been a top issue for years. Health, education, job creation, education and empowerment of the youth and women are areas we will be looking at for as we begin our job on the 2025 budget proposal.”

    According “The leadership through the Committee has set a very tedious template on what MDAs must meet before approve any estimate. 

    “MDAs must show how much they have complied with due process of law in implementing the previous budget, convince lawmakers about their understanding of the President’s vision in the areas of responsibility and equally be able to justify that they have what it takes to spend Nigerian tax payers’ money.

    “Mr Speaker is very particular about accountability and due process. 

    “Agencies which fail to meet our parameters as a parliament will have no allocation for capital projects in 2025. This is exactly why we are voted by Nigerians,” he added.

    Meanwhile, defence of the budget estimates by Ministries, Departments and Agencies of government before the various House Committees failed to begin in the House of Representatives on Tuesday as expected. 

    Read Also: House of Reps: The year in retrospect

    As at about 5.00pm on Tuesday, there was. No sign of any activity at the various committee rooms in the House where the budget defence is expected to take place. 

    It was not clear at the time of this report why the budget defence failed to start, but it may not be unconnected with the absence of most members of the House who may still be enjoying the Christmas and new year break. 

    The House is expected to resume plenary on Tuesday, January 14, 2025.

    There are however indications that the various MDAs may have to appear before joint Committees of the Senate and House for their budget defence in view of short time available to the lawmakers. 

    Bichi had assured that the lawmakers scrutinise the budget very well in the national interest.

  • 2025 appropriation bill scales second reading in Reps

    2025 appropriation bill scales second reading in Reps

    The House of Representatives on Thursday passed for second reading the 2025 appropriation bill of N49.7 trillion presented to the National Assembly by President Bola Ahmed Tinubu on Wednesday.

    Members took turn to commend the President for the budget, describing it as ambitious, while some warned that the parameters for the budget were not realistic, calling for proper implementation and monitoring.

    Leading the debate on the bill, House Leader, Julius Ihonvbere said President Tinubu admitted during the budget presentation that Nigerians were going through rough times, but added that for once, Nigerians are seeing a government that is ready to refocus the Nigerian economy.

    He said the budget has made adequate provision for the education sector as well as security, health and infrastructure, adding that with the determination of the government, the country will soon begin to see foreign investments in the country.

    Ihonvbere applauded the determination of the government to reduce inflation to 15 percent in 2015, saying the target was realizable if all Nigerians contribute their quota, pointing out the President has demonstrated serious courage and leadership in moving the nation forward.

    Former Deputy Speaker of the House, Ahmed Idris Wase wants proper implementation and monitoring of the security budget, adding that doing so can put an end to the security challenges in the country.

    He said: “We should follow up the utilization of the security budget to ensure value for money”, and called for the speedy passage of the budget to ensure that what is allocated to the various constituencies are implemented.

    He decried the challenge in the health sector especially in the area of funding and infrastructure.

    But Jeremiah Umoru questioned the criteria used in allocating money to the South West Development Commission whose board has not been constituted, while the North Central and South South Development Commission whose establishment bills are currently with the President are left out.

    Wale Hammed commended the President for his infrastructural drive as shown in the Lagos to Calabar and Sokoto to L:agos road projects, saying “in 1985 when I went to Sokoto to study, we were told that there will be a road from Sokoto to Lagos. I spent seven years there and the road was not constructed. It has remained like that over the years. Now, the road is being constructed.”

    He also applauded the government for paying attention to capital budget, which he said is almost at par with the recurrent expenditure in the budget.

    Also contributing, Babajimi Benson said with adequate security in the country, Nigeria will be able to unlock its potentials, adding that the N4.9 trillion budgeted for the security sector does not include the potentials of the Defence Industries Corporation of Nigeria.

    He said: “With the reforms in DICON, a lot of countries are interested in investing there and very soon, Nigeria will become a producer of military hardwares.”

    But minority leader of the House, Kingsley Chinda said the budget was overtly over ambitious inspite of the President’s optimism about the budget, adding that if well implemented, the budget portend something good for the Nigerians.

    Chinda said however that Nigerians must not lose site of the fact that the budget is merely a projection, adding that while considering whether the projections are realizable, the indices on ground must be considered.

    Read Also: BREAKING: Senate passes N49.7trn 2025 appropriation bill for second reading

    He said: “Our indices are not completely correct. So, it is not yet uhuru. The plan to reduce inflation from about 35 percent to 15 percent is over ambitious and I don’t see how we can achieve that. If we are able to achieve security in 2025, will that improve food security in 2025. I don’t think so. We can be looking at 2026 for food security.

    “The budget for security will not take us to the promise land. In terms of revenue generation, the revenue sources remained the same. The concern is that we let us not over tax the people again. We should be talking about expanding the revenue sources, tighten the tax net.

    “The issue of revenue target is key, while the amount for deficit appear to be too high. With this figure, I don’t see how Nigerians will not go to bed hungry in 2025. How do we achieve an exchange rate of N1,500 when we have market forces dictating the exchange. What are the things on ground that will crash the exchange rate?

    Chinda said although the budget appear beautify, there is much more to be done to ensure that the target is achieved, while warning that environmental sustainability must be properly taken care in the budget.

    Some members also called for increased allocation to the zonal development commissions to actualize the intention for which they were established.

  • JUST IN: Ogun postpones presentation of 2025 appropriation bill

    JUST IN: Ogun postpones presentation of 2025 appropriation bill

    The presentation of the Ogun State 2025 Appropriation Bill to the State House of Assembly by Governor Dapo Abiodun, originally scheduled for Friday, November 29, 2024, has been postponed.

    Read Also: Tinubu pledges to prioritise skills development for out-of-school Nigerians

    In a statement signed by the Clerk and Head of Legislative Service, Sakiru Adebakin, the Assembly assured that a new date for the budget presentation would be communicated soon.

    The Clerk expressed regret for any inconvenience caused by the postponement.

  • Federal Govt targets N34.8tr revenue in 2025 Appropriation Bill

    Federal Govt targets N34.8tr revenue in 2025 Appropriation Bill

    The 2025 Appropriation Bill targets N34.8 trillion revenue, it was learnt yesterday.

    The Bill also projects a comprehensive debt restructuring strategy aimed at freeing up funds for critical infrastructure development.

    This approach is one of the key components of the 2025-2027 Medium-Term Fiscal Framework and Fiscal Strategy Paper (MTEF/FSP), which the Federal Executive Council (FEC) approved  on Thursday.

    The MTEF/FSP with the N47.9 trillion 2025 Appropriation Bill are to be transmitted to the National Assembly for consideration.

    The federal lawmakers resume today from a two-week recess.

    With declining household and private-sector spending, the government plans to secure long-term non-commercial facilities with tenors ranging between 10 and 50 years and a moratorium of five to seven years.

    According to the MTEF/FSP document released by the Budget Office of the Federation, the provision for debt service is expected to rise significantly due to the country’s large debt profile and the Central Bank of Nigeria (CBN) Monetary Policy Rate (MPR), which stood at 27.25 per cent as of September.

    The MTEF/FSP has outlined ambitious revenue and expenditure goals in 2025.

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    Under revenue, the Federal Government is targeting N34.8 trillion, with N19.6 trillion and N5.7 trillion from oil and non-oil taxes respectively; N2.87 trillion from Government-Owned Enterprises (GOEs); N3.6 trillion from independent revenue sources and N4.8 trillion from other sources.

    Next year’s expenditure goal of the government is N47.9 trillion, comprising N14.2 trillion for non-debt recurrent expenditure; N16.4 trillion for aggregate capital expenditure; N15.38 trillion for debt service and N2 trillion for other expenditures.

    The government acknowledged persistent revenue mobilisation challenges, low oil and gas revenues, and escalating costs of fuel subsidies as contributors to the federal budget deficit.

    However, recent reforms, including the removal of petrol subsidies, reduction in tax waivers, and higher crude oil production, are expected to alleviate fiscal pressures.

    To bridge fiscal deficits, the government will prioritize cheaper and more flexible borrowing options and implement revenue mobilization measures.

    “Borrowing, the document said, “will be a last resort, used only for long-term growth projects or critical needs”.

    The government plans to intensify efforts to improve fiscal management by strengthening the budget process and scrutinizing spending by ministries, departments, and agencies (MDAs) next year.

    Key targeted measures include: prioritising ongoing projects over new ones; streamlining administrative costs and merging overlapping agency functions; enhancing treasury controls to curb financial mismanagement and corruption and reviewing fiscal incentives to increase transparency in revenue collection.

    According to the document, the need to create new agencies will be rigorously evaluated. Only when no agency exists that performs the same function that such need may be considered; Agency-by-agency review of functions, expenditure patterns and staffing levels, outputs and results, and identification of functions to privatize”.

    The framework also emphasizes national security as a top priority. Investments will focus on military equipment, barracks accommodation, personnel welfare, and cybersecurity.

    Collaborative efforts among security services will address challenges such as banditry, terrorism, and kidnapping to create a safer environment for economic growth.

    The government plans to overhaul internal security strategies to safeguard lives, properties, and investments nationwide. Improved security conditions are expected to stimulate economic activity and social life (including nightlife, which constitutes between 24-40 per cent of economies of states where they are functioning well), enhance farm productivity, and boost access to education, especially for vulnerable groups like girls.

    Assumptions for 2025-2027 MTEF/FSP

    The Federal Government has also outlined ambitious economic projections and revenue strategies for 2025-2027 in the MTEF/FSP.

    Central to the plan is achieving a 3.68 per cent economic growth rate, compared to 2.74 per cent in 2023 and 3.55 per cent in the outgoing year, amid a shrinking dollar-denominated GDP and ongoing fiscal challenges.

    Nominal GDP is projected to grow from N293.74 trillion in 2024 to N352.36 trillion next year. It is to be primarily driven by inflation-related consumption.

    However, in dollar terms, the GDP is expected to contract significantly, falling by nearly 40 per cent from $348.4 billion in 2023 to $218.3 billion in the outgoing year.

    Inflation, which averaged 32.8 per cent in the first half of 2024, is projected to decline to 16.94 per cent in 2025, offering potential relief to households and businesses.

    The document noted that the CBN anticipates stabilising the naira at N1, 400/$ next year, “contingent on improved economic activities and reforms in the oil sector”.

    Crude oil remains a key revenue driver, with a conservative benchmark price of $75 per barrel for 2025, slightly lower than $77.96 in 2024, ensuring budget realism.

    The government plans to step up efforts to expand non-oil revenue streams to address fiscal gaps.

    Tax administration reforms will target improved compliance, closing loopholes and bringing more businesses and individuals, especially from the informal sector into the tax net