The request by President Bola Tinubu to increase the 2025 budget estimate from N49.7 trillion to N54.2 trillion continues to gather mix reactions, the President of Nigerian Association of Chambers of commerce, Industry, Mines and Agriculture (NACCIMA), Dele Oye, has said that the increase signals proactive approach by the government to revenue management and capital investment, adding however, that further clarifications were needed on the extra sources of income.
He stated: “President Bola Tinubu’s recent appeal to the Senate for an amendment to the 2025 national budget, raising it from N49.7 trillion to N54.2 trillion, marks a noteworthy divergence from the conventional budgetary process. This request, communicated mid-deliberations, prompts an examination of the ramifications and the overarching context of increased fiscal projections.
“The request has been articulated by Senate President Godswill Akpabio, who indicated that the proposed expansion is underpinned by anticipated additional revenues from key government agencies: N1.4 trillion from the Federal Inland Revenue Service (FIRS), N1.2 trillion from the Nigeria Customs Service, and N1.8 trillion from various government-owned entities.
“However, the absence of detailed clarifications regarding these income sources raises a point of concern. Stakeholders are left to ponder the viability and reliability of these projected revenues, particularly as they play a crucial role in justifying the budgetary increment.
“Nevertheless, the aspirations tied to this additional funding, particularly regarding the bolstering of the Bank of Industry and the Bank of Agriculture, reflect a strategic vision aimed at facilitating economic diversification and stimulating growth across critical sectors.
“The intention to channel these funds into strengthening these development banks can yield significant benefits for the productive sector and, by extension, the private sector. Enhanced financial support for these institutions is likely to promote increased investment in infrastructure, solid minerals, and various diversification programs – imperatives for a resilient economy.
“Moreover, the proposed increase necessitates subsequent amendments to the Medium-Term Expenditure Framework (MTEF), which was originally designed to accommodate a budget of less than N49 trillion. Adapting this framework to align with the revised fiscal strategy underlines the government’s ambition to elevate its economic objectives.
“In conclusion, while the initiative to increase the budget signals a proactive approach to revenue management and capital investment, it is paramount for the government to provide clarity on revenue sources and ensure transparency in the budgeting process.
“A well-articulated rationale for the budgetary adjustments will bolster confidence among stakeholders, affirming the government’s commitment to creating a conducive environment for economic growth and development.
“On behalf of NACCIMA, we acknowledge the intentions behind this request and advocate for a thorough examination of its potential impacts on national economic health and stability.”