…Nigeria must turn debt into economic asset — Shettima
By Seun Ibiyemi
The 2025 budget was increased from N49.7 trillion to N54.2 trillion to strengthen key economic sectors and infrastructure projects, Minister of Budget and Economic Planning, Abubakar Atiku Bagudu, has revealed.
Speaking to journalists at the Presidential Wing of the Nnamdi Azikiwe International Airport, Abuja, on Wednesday, the minister explained that President Tinubu approved the additional N4.5 trillion to further strengthen the Bank of Agriculture and the Bank of Industry, boost diversification by investing more in the solid minerals sector, and support projects under the Renewed Hope Infrastructure Fund.
“You’ll recall President Bola Ahmed Tinubu submitted a N49.7 trillion budget to the combined National Assembly, and legislative work commenced.
“Through continued interactions between the Executive and the National Assembly, it was established that we could generate more revenue,” Bagudu said.
According to him, the Senate Committees on Appropriations, National Planning, and Finance, along with the Economic Management Team, determined that various government institutions could contribute more revenue than initially projected.
“In that process, both the Senate Committee on Appropriations, Senate Committee on National Planning, and Senate Committee on Finance established that we can generate more revenue by tasking all the institutions to do more.
“The Federal Inland Revenue Service confirmed their ability to generate more than what was initially submitted,” he added.
Bagudu further disclosed that other revenue-generating agencies, including government-owned enterprises and the Nigeria Customs Service, also confirmed their capacity to increase their contributions, resulting in additional revenue of over N4.5 trillion.
This discovery, he said, was taken to President Tinubu, who, after consultations, directed that the extra funds be strategically allocated to critical sectors.
“The beauty of the National Assembly and Executive cooperation is that it’s a harmonious relationship. Mr. President was briefed on this additional revenue, and he guided that it should be used to further strengthen the Bank of Agriculture, the Bank of Industry, support diversification by putting more money in the solid mineral sector, as well as projects under the Renewed Hope Infrastructure Fund,” Bagudu stated.
On whether the increase would necessitate an adjustment of the Medium-Term Expenditure Framework (MTEF), the minister confirmed that changes would be made to align with the revised budget.
“Oh, yes, the fact of the submission and the National Assembly is always welcoming. Recall that even when the budget was submitted, the MTEF was amended because the version approved was for a budget of less than N49 trillion. So it goes together, and the National Assembly has always been part of this process. A consequential amendment to the MTEF will certainly follow,” he explained.
President Tinubu on Wednesday raised the proposed 2025 budget from ¦ 49.7 trillion to ¦ 54.2 trillion, citing additional revenues generated by key government agencies.
The President informed the Senate and the House of Representatives in separate letters that the increase was driven by ¦ 1.4 trillion in additional revenue from the Federal Inland Revenue Service (FIRS), ¦ 1.2 trillion from the Nigeria Customs Service (NCS), and ¦ 1.8 trillion generated by other government-owned agencies.
Recall that President Tinubu in December 2024, presented a budget of N49.7 trillion for the 2025 fiscal year to the National Assembly.
…Nigeria must turn debt into economic asset – Shettima
Meanwhile, the Vice President Kashim Shettima has emphasised the need for Nigeria to transform its public debt into a strategic asset for economic growth and poverty reduction, rather than viewing it as a financial burden.
Shettima laid the emphasis while inaugurating the Supervisory Board of the Debt Management Office (DMO) as part of efforts by the federal government to strengthen fiscal and monetary policy coordination and ensure long-term debt sustainability in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda.
Speaking during the Meeting of the Board on Wednesday at the State House, Abuja, the Vice President who is also Chairman of the Board charged the members to come up with a more strategic approach to public debt management.
According to a statement issued by Senior Special Assistant to the President on Media and Communications, Office of the Vice President, Stanley Nkwocha, Shettima noted that Nigeria must continue to use public debt as a vehicle for the development of critical infrastructure and tool for economic growth and poverty reduction.
”With prudent management, debt can be transformed into an asset for economic growth and poverty reduction. Our goal must be to formulate policies, regulations, and guidelines for the DMO, with a view to achieving long-term debt sustainability for our country,” the VP stated.
VP Shettima explained that this approach aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu’s administration, which prioritizes fiscal discipline, economic stability, and sustainable development.
He stressed that borrowing, when applied prudently, could serve as a catalyst for economic growth rather than a financial liability.
“As you all know, public debt, if prudently applied, becomes an asset for economic growth and poverty reduction. However, recent realities in our economy call for stronger coordination between our fiscal and monetary policies,” he said.
He commended President Bola Tinubu for his economic reforms, acknowledging the President’s dogged efforts towards reforming the Nigerian economy.
He also praised the minister of finance and coordinating minister of the economy and the DMO leadership for their untiring efforts in the day-to-day management of the nation’s sovereign debt portfolio.
“I want to commend the dedication of our leader, President Bola Ahmed Tinubu, GCFR, in his dogged efforts towards reforming our economy. I applaud the Honourable Minister of Finance and the Coordinating Minister of the Economy, and the DMO Management, for their untiring efforts in the day-to-day management of our sovereign debt portfolio,” he said.
The Vice President also noted Nigeria’s recent success in the global financial market on the issuance of a $2.2 billion double-tranche Eurobond, which he described as a testament to investor confidence in the country.
“I also use this opportunity to congratulate them and other members of the Nigerian delegation for a successful outing in the recent $2.2 billion double-tranche Eurobond issuance. The over-subscription rate of the bonds showed an impressive appetite for our country’s sovereign instruments in the global capital market.
“Other members of the Board are Minister of Finance and Coordinating Minister for the Economy, Wale Edun (Vice Chairman); Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (member); Special Adviser to the President on Economic Matters, Dr. Tope Fasua (member); Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso (member); Accountant-General of the Federation (OAGF), Dr. Oluwatoyin Sakirat Madein (member), and Director-General of the Debt Management Office, Patience Oniha (Secretary).