By John Joseph
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The Federal Government’s decision to increase the 2025 budget from N49.7 trillion to N54.2 trillion has sparked intense debate among economic experts.
While some have welcomed the move, others have expressed concerns over its potential impact on the economy. On one hand, experts like Tunde Amolegbe, Managing Director of Arthur Steven Asset Management, believe that the
increased budget is necessary for infrastructure growth. “A more ambitious budget is essential to improve our infrastructure,” he said. However, Amolegbe also cautioned against excessive borrowing, highlighting the need for a balanced approach.
On the other hand, economists like Marcel Okeke and Paul Alaje have raised concerns over the potential consequences of the increased spending. Okeke criticized the last-minute adjustment, warning that the budget changes could undermine the government’s credibility.
Alaje, Chief Economist at SPM Professionals, expressed concerns over the impact on inflation, which the government aims to limit to 15%.The proposed budget increase is driven by additional revenue from key government agencies, including the Federal Inland Revenue Service and the Nigeria Customs Service.
The extra N4.5 trillion will be allocated to critical sectors such as agriculture, infrastructure, and security.The House of Representatives has backed President Tinubu’s proposal, with Deputy Speaker Benjamin Kalu assuring swift consideration.
The Senate has referred the request to the Appropriations Committee, with Senate President Godswill Akpabio promising to pass the budget by the end of February.
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