* Political class, citizens differ
* Portray FG’s commitment to security, infrastructure, better economy – Lawmakers
* Budget increases 74% in nominal terms, but decreases 23% in real terms
* It’s the worst so far, doesn’t propose much – CUPP
The 2025 budget proposal of N49.7trn that President Bola Tinubu presented to the National Assembly on Wednesday has sparked divergent views from Nigerians, DAUDA ISAMAIL reports.
On Wednesday December 18, President Bola Ahmed Tinubu presented the 2025 budget of N49.7 trillion to a joint session of the National Assembly.
The budget, christened “Budget of Restoration: Securing Peace, Rebuilding Prosperity,” was subsequently read on the Senate floor for the first time on the same day, but by Thursday, it passed the second reading after it was debate.
During Thursday’s plenary, Sen Bamidele (Ekiti Central) said the budget proposal demonstrated Mr Tinubu’s commitment to stabilising 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 the rise would address infrastructural decay and developmental challenges in the country.
“The 2025 budget has seen a significant increase of 74.18 per cent, reaching N47.9 trillion 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 per cent, 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 well-being of the population,” he said,.adding that the budget proposal indicated the government’s direction in ensuring a peaceful and secure environment.
The senator projected that when the budget implementation starts next year, the inflation rate will drop from 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 said that the importation of petroleum products would be reduced, and the export of finished petroleum products would be increased.
Mr Bamidele also projected bumper harvests, increased foreign exchange inflows through Foreign Portfolio Investments, higher crude oil output and exports, and a substantial reduction in upstream oil and gas production costs.
Contributing, the Deputy Senate President, Barau Jibrin, commended the president for his political will in bringing prosperity to the country.
Mr Jibrin, who represents Kano North Senatorial District, noted that the budget demonstrated the government’s intention to fight insecurity.
“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 said.
Mr Jibrin maintained that when the country is secured, investors will be encouraged to establish in it.
On his part, Asuquo Ekpenyong (Cross River South), commended President Tinubu for the budget presentation, and that the positive review of Nigeria’s economy has increased since Mr Tinubu became president.
The senator also commended the government for its achievements in foreign exchange reserves.
“Foreign exchange reserves have increased 42 billion dollars from almost a negative inheritance. Surpluses of 5.8 trillion and we see economic growth in the country is at 3.4 shooting past the project to 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.
Senators Sadiq Umar (Kwara North), Adetokunbo Abiru (Lagos East), each commended the budget proposal.
Although some other senators raised concerns about specific items in the budget like the high amount for debt servicing and the oil production projections amongst others, most lawmakers spoke in favour of the bill. Eventually, Senate President Godswill Akpabio, referred it to the committee on appropriation for further legislative action, asking the committee to report to the Senate in four weeks.
The story wasn’t different at the House of Representatives where it has also passed it’s second reading.
In like manner, experts and the masses alike are also divided in their opinions.
The Director, Institute of Capital Market at the Nasarawa State University, and President, Capital Market Academics of Nigeria, Prof Uche Uwaleke, said the N1,400 to the dollar exchange rate stipulated in the N47.9 trillion 2025 budget is unrealistic.
The financial expert, in an interview with the News Agency of Nigeria, NAN, had said such exchange rate projection could give significant room for off-budget funds.
“I think the exchange rate of N1,400 to the dollar is unrealistic based on a one-year outlook of FX flows. It introduces a slack in the 2025 budget implementation, which gives room for significant off-budget funds,” he said.
However, former President of the Abuja Chamber of Commerce and Industry, Dr Chijioke Ekechukwu, said that the N47.9 trillion budget was realistic.
According to the economist, N47.9 trillion may look audacious and humongous, but when converted to dollars at the current exchange rate of N1,735 per dollar, it is about $27.6 billion.
“This is not up to the budget of many states in the United States. The exchange rate, the inflation rate, and the high cost of living have necessitated this huge budget figure. The crude oil price of $75 per barrel and exchange rate of N1,400 are apt,” he said.
For Bismarck Rewane, Executive Director of Financial Derivatives, a consultancy firm, he described the $75 per barrel oil price as unrealistic in the face of global uncertainties, saying the benchmark should be closer to $65 per barrel to allow for fiscal flexibility.
On his part, the Chief Executive Officer of CFG Advisory, Tilewa Adebajo, saw a disconnect between the budget projections and Nigeria’s fiscal reality.
Adebajo said N1,400 to the dollar was overly optimistic, adding that inflationary pressure and deficit financing could push rates beyond N1,800.
He said, “The real issue is whether we can afford what we are budgeting for. Revenues for 2024 were projected at N17 trillion, but we consistently implemented only half the budget due to shortfalls. If you cannot fund your plans, you carry deficits forward, a cycle we have seen repeatedly.”
Similarly, the Coalition of United Political Parties, CUPP, has punctured the 2025 Budget proposal of N49.7trn presented to the National Assembly by President Bola Ahmed Tinubu for passage into law, saying it might be the worst so far by any government in the country, just as it quickly noted that the implementation would prove even more challenging.
Spokesperson of CUPP, Comrade Mark Adebayo, said this in reaction to the said budget, recalling sadly that over the years, successive Nigerian governments’ ritual of annual budget presentations had always been a shadowy business and bundles of contradictions.
CUPP said Nigerians should not have any high expectations in the areas of economic recovery or inflation reduction as indicated in the budget proposal by the president, declaring pointedly that the proposal “doesn’t promise much” even before its implementation.
According to Adebayo, whatever little promises embedded in the budget proposal are a mere optical illusion, saying this is because it was coming with factory-fitted anomalies that cannot be fixed easily, if possible at all.
“Over the years, successive Nigerian governments’ ritual of annual budget presentations has always been a shadowy business and bundles of contradictions.
“The 2025 appropriation Bill (Budget proposal) submitted on Wednesday to the national assembly by President Bola Tinubu might be the worst so far. The implementation will prove even more challenging.
“Nigerians should not have any high expectations in the areas of economic recovery or inflation reduction. This is because even before the budget cycle begins to be implemented, it doesn’t promise much. Whatever little promises embedded in it are a mere optical illusion.
“I say this because the budget is coming with factory-fitted anomalies that cannot be fixed easily, if possible at all,” he said.
Speaking further, the CUPP chieftain said nothing good can come from a budget with a projected deficit of N13.39trillion which was to be financed through borrowing, describing such as a budget of continuous slavery and exacerbated poverty in a country that “has already overborrowed as it stands today.”
Adebayo described the current situation as alarming, saying that it only goes to show that those currently in power at the center have no business being in government at all.
“Nothing good can come from a budget with a projected deficit of N13.39 Trillion Naira which is to be financed through borrowing. That’s a budget of continuous slavery and exacerbated poverty. Nigeria has already overborrowed as it stands today. It is tragic that this government lacks any creative idea to finance the budget other than borrowing. This is alarming, to say the least.
“It only goes to show that those currently in power at the center have no business being in government at all,” he said.
And on the streets too, it has been a case of different strokes for different folks as views are divergent.
