The House of Representatives, during its Thursday plenary, passed the N49.8 trillion budget estimates for the 2025 fiscal year through the Second Reading.
While referring the Appropriation Bill to the Joint Committees on Appropriations, Finance, and National Planning for necessary legislative scrutiny, the House resolved to ensure the conclusion of all legislative processes on the 2025 budget proposal and pass it through the Third Reading by January 31, 2025.
Some lawmakers, during the debate on the general principles of the 2025 budget proposal, underscored the need to implement fiscal and monetary policies to address the myriad of socioeconomic challenges facing the country.
They also emphasized the need for an upward increase in budgetary allocations to the security and agriculture sectors, as well as a reduction in the budget deficit and inflation, while blocking financial leakages.
In his remarks, Minority Leader Hon. Kingsley Chinda noted that if implemented, the proposed 2025 budget could benefit the country. However, he criticized the proposed reduction of inflation from the current 34.6% to 15%, as well as the exchange rate projection from N1,700/$ to N1,500/$ in 2025, describing them as “ambitious and unrealistic.”
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He stated:
“I agree with those who said that if the budget is implemented as presented, it has the potential to turn things around. However, it is not enough to praise the budget as it stands on paper because it is not yet Uhuru.
“The target of reducing inflation to 15% is too ambitious. Even if we succeed in improving security, food security in 2025 is not guaranteed.
“As promising as the budget proposal is, the allocation for security will not take us far, as it is only 50% more than the amount Nigerians paid as ransom. Moreover, the N1,500 exchange rate projection is out of touch with reality.”
Hon. Chinda expressed grave concern over startling data from the latest Crime Experience and Security Perception Survey (CESPS) released by the National Bureau of Statistics (NBS), which revealed that Nigerians paid an alarming N2.23 trillion in ransom to kidnappers between May 2023 and April 2024. He stressed the importance of achieving security and food security simultaneously.
He also questioned the feasibility of the projected revenue of N34.82 trillion, given the country’s current revenue sources. He urged President Tinubu’s administration not to overtax Nigerians in pursuit of this ambitious target.
Highlighting the high fiscal deficit of N13.08 trillion, Hon. Chinda remarked:
“With this, I don’t see how Nigerians will not go to bed hungry.”
Deputy Minority Whip Hon. George Ozodinma emphasized the need for increased budgetary allocations to the South East Development Commission for its effective take-off.
Similarly, Chairman of the House Committee on Insurance and Actuarial Matters, Hon. Ahmad Jaha, argued that the N4.91 trillion proposed for security in the 2025 budget is insufficient and stressed the need to prioritize security funding.
“All the budget elements are achievable if we are secure as a nation,” Hon. Jaha stated, adding that the proposals, particularly those focusing on agriculture and infrastructure, are ambitious.
“Security is crucial, but I must emphasize that even the 2.06mbpd oil production target cannot be achieved without adequate security,” he concluded.
Meanwhile, the House resolved to adjourn plenary to Tuesday, January 14, 2025.
