President Tinubu presented the N49.7 trillion budget proposal to a joint session of the National Assembly on Wednesday.
The House of Representatives has passed for both first and second readings the N49.7 trillion budget proposed by President Bola Tinubu.
The budget bill scaled these two legislative stages on Thursday after a debate on its general principles during plenary.
President Tinubu presented the budget proposal to a joint session of the National Assembly on Wednesday.
However, the late submission of the budget by the president makes it unlikely that the January-December fiscal calendar will be maintained.
Process of passing budget
The budget, like any bill, must go through specific stages before becoming law.
It is first introduced to the House as the first reading. The bill is then debated by lawmakers, and if approved, it passes the second reading and is referred to the Committee on Appropriations for further action.
The Committee on Appropriations reviews the bill and makes necessary adjustments.
Subsequently, a report is presented to the House, after which the bill is considered by the Committee of Supply on a clause-by-clause basis.
Once this stage is completed, the bill moves to the third reading for final passage.
Parameters of the 2025 Budget
According to the bill, the government proposes a total budget of N49.7 trillion, broken down as follows:
· Statutory transfers: N4.4 trillion
· Debt servicing: N16.3 trillion
· Recurrent (non-debt) expenditure: N14.1 trillion
· Capital expenditure: N14.8 trillion (to the development fund)
The proposed budget includes a deficit of N13.08 trillion, equivalent to 3.89 per cent of GDP.
Other parameters include an exchange rate of ₦1,500 to a dollar and a base crude oil production estimate of 2.06 million barrels per day (mbpd)
These variables are subject to possible adjustments by the National Assembly during the legislative process.
Debate
Most lawmakers spoke in favour of the bill, though concerns were raised about the high amount for debt servicing and the oil production projections.
Several lawmakers also expressed reservations about the executive's ability to implement the budget effectively.
The Deputy Minority Whip, George Ozodinobi (LP, Anambra), criticised the budget for allegedly neglecting major projects in the South-east region.
He argued that the region feels marginalised by the government and cited the Lagos-Calabar Coastal Highway and the Sokoto-Badagry Road as examples of legacy projects in other regions.
The Minority Leader, Kingsley Chinda (PDP, Rivers), criticised the budget parameters, particularly the projected 15 per cent inflation rate, describing it as unrealistic.
"The inflation reduction target is too ambitious. Even if we address insecurity, achieving food security in the same year is highly unlikely," he said.
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Oluwole Oke (PDP, Osun) described the budget as inadequate, highlighting the underfunding of Nigeria's foreign missions.
He noted that the allocation of N286 billion for foreign missions is insufficient, considering studies showing that N2 trillion is required to run them effectively.
"This budget is grossly inadequate. I have no issue with borrowing, but there are significant leakages in the system. The Finance Committee must identify these leakages. Many individuals are exploiting loopholes in our laws to evade taxes," said Mr Oke, who chairs the foreign affairs committee of the House.
After about four hours of debate, the bill was passed as most of the lawmakers supported it when Deputy Speaker Ben Kalu put it to vote.
Before the ruling, Mr Kalu directed that all newly created regional development commissions should receive equal funding.
