Following President Bola Ahmed Tinubu’s request that the 2025 budget be increased from forty nine point seven trillion naira to fifty four point two trillion naira, all eyes are now focused on the National Assembly to see if they will accept the request or not.
Some critics have questioned why the country’s increased revenue from oil, rising income has not eased Nigeria’s debt burden.
But another group argues that the initial budget of ₦49.7 trillion or even the increased ₦54.2 trillion is relatively small when converted to dollars.
According to them, more borrowing may be necessary to fix key sectors, provided funds are spent transparently and efficiently.
In a letter to the National Assembly, President Bola Tinubu explained that the additional ₦4.5 trillion stems from increased revenue generated by the Federal Inland Revenue Service (FIRS), which contributed an extra ₦1.4 trillion; the Nigeria Customs Service, added ₦1.2 trillion; and other government-owned enterprises, accounted for ₦1.8 trillion.
The presidency maintains that these funds will strengthen national security, youth empowerment, infrastructure, and economic expansion which are key pillars of the Restoration Budget: Securing Peace, Rebuilding Prosperity for 2025
However, despite this revenue boost, borrowing remains a major component of the budget. Critics argue that with more funds available, the government should reduce its dependence on loans.
Yet, the administration continues to rely on borrowing, raising concerns about Nigeria’s growing debt profile and its long-term economic impact.
Before this increase, the initial 2025 budget had already faced opposition. The Conference of United Political Parties (CUPP) labeled it a “risky gamble with unrealistic assumptions,” questioning its feasibility and Nigeria’s commitment to meaningful development. Economic analysts also warned about ambitious exchange rate projections and mounting debt obligations.
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These concerns remain valid even as the budget expands.
Meanwhile, some economic experts argue that even the proposed ₦54.2 trillion budget is inadequate when converted to dollars, limiting its capacity to drive significant economic transformation.
Given the current exchange rate, they suggest that the government may need to borrow strategically to rebuild critical sectors and stimulate long-term growth.
However, they emphasize that such borrowing must be targeted, devoid of corruption, and channeled into infrastructure, education, healthcare, and industrial development to yield tangible benefits for Nigerians.
The Nigerian public remains divided. While some see the revised budget as an opportunity to enhance infrastructure and social services, others fear it could lead to inflation, higher taxes, or further economic strain.
Opposition lawmakers have also called for greater transparency in the allocation of funds to ensure efficiency and accountability.
As the National Assembly reviews the proposal,economic experts advise that stakeholders must strike a balance between borrowing for development and maintaining fiscal responsibility.
While targeted investments could drive progress, unchecked borrowing without transparency could worsen Nigeria’s economic challenges.
The key question remains: Can the government ensure that every borrowed naira is put to work for the benefit of Nigerians?
(Editor : Ena Agbanoma)
