By Olugbenga Salami
Since January 14, various ministries, departments and agencies, MDAs of the federal government have been rushing to the National Assembly to defend their allocations in the 2025 budget. The two chambers of the legislative arm of government, the Senate and the House of Representatives, had initially suspended plenaries for two weeks to enable them attend to the heads of the MDAs, but later increased the period for budget defence by one week, to now end on January 31.
With the latest development, it is now certain that the government will not be able to sustain the practice of January to December budget circle started by the former President Muhammadu Buhari administration. Already, the National Assembly has approved the request of President Bola Tinubu to extend the implementation of the capital component of the 2024 budget till June 30, 2025 to enable the government utilise the components fully.
The President had on December 18, 2024 presented N49.7trillion as the 2025 budget proposal, christened “Budget of Restoration: Securing Peace, Rebuilding Prosperity” to the joint sessions of the National Assembly. Earlier, the two chambers had approved the 2025-2027 Medium Term Expenditure Framework, MTEF and the Fiscal Strategy Paper, FSP with a total spending of N47.9 trillion and a new borrowing plan of N9.22 trillion, constituting domestic and foreign borrowings.
Constitutionally, it is the duty of the legislature to scrutinize allocations to all the MDAs in form of reviewing and debating the budget proposals by the executive arm of government, and then authorize spending to implement the budget, through its passage of the annual estimates.
It is also a fact that if the legislature does not rigorously examine and debate the budget, its power is not being effectively exercised, and the government’s accountability to the electorate for its fiscal strategy and strategic budget allocation decisions is undermined.
President of the Senate and chairman of the National Assembly, Godswill Akpabio, assured that the Red Chamber in particular would ensure that every naira spent out of the 2025 budget touches the lives of Nigerians, and therefore urged the MDAs to cooperate accordingly. He spoke on Thursday, January 16 at the stakeholders’ public hearing on the budget organised by the Senate Committee on Appropriations. The gathering heralds the inputs of the Appropriation sub-committees of the earlier standing committees that interfaced with the leadership of MDAs.
Akpabio noted that the 2025 fiscal policy is “a strategic instrument to secure peace, ignite prosperity, and lay the cornerstone of a stronger, more resilient Nigeria.” He considered the session as an opportunity for the National Assembly to craft a budget that not only meets immediate needs, but that will also build a resilient and inclusive economy for generations to come.
He, however, expressed confidence that the task of properly crafting the budget was not beyond the reach of the lawmakers, as he said “within every challenge lies the seed of opportunity”, adding that “the task before us is formidable, but it is neither beyond our reach nor beneath our determination.”
Meanwhile, the chairman, Senate Committee on Appropriations, Senator Solomon Adeola (APC Ogun West), at the retreat lamented that a lot of revenues have been held hostage by such organizations as the Nigerian National Petroleum Company Limited, NNPCL which it alleged believes “there are still some elements of subsidy that are being treated as an operational expense in their document that they still need to wipe out for more revenue to be free and some all other sundry items.”
He also cleared the air on the padding allegations that surrounded the 2024 budget, describing them as “needless controversy.” According to him, “The unfounded allegations of missing N3.0 trillion misrepresented the facts on the funds appropriated for agencies whose funds are on the first-line charge.”
Adeola, while pointing out the focus of the 2025 Appropriation Act, maintained that the government sees it as “a deliberate effort at solidifying the gains of previous fiscal policies while charting a course for sustainable economic growth.”
“It is important to remind us all, that the Constitution of the Federal Republic of Nigeria vested in the National Assembly, appropriation rights and powers over public revenues and expenditures. The appropriation rights and powers conferred on the National Assembly are exercised carefully and delicately in the best interest of the public, and to ensure that growth and development are promoted in all the senatorial districts and federal constituencies across the country.
“It is important to note that appropriation decisions made by the National Assembly are not arbitrary or solely based on its own preferences. Instead, these decisions are informed by a process that involves suggestions and input from relevant Ministries, Departments, and Agencies, MDAs of the government, and other stakeholders.
“Therefore, it is uncharitable to chastise the National Assembly for exercising its appropriation powers, granted by the Nigerian Constitution, in ensuring that there is development and government presence in every section of the country,” he explained.
However, what makes the 2025 budget defence different is the limited time set for it by the National Assembly after late presentation by the President. This has been making the legislative complex, right from the outside gate popularly called MOPOL Gate, to be heavily jam-packed with many vehicles by the heads of various MDAs while security agents have been facing haculean task controlling the traffics.
All the MDAs were trying to beat time by having their budgetary allocations defended and approved by the legislature. To enable them meet up with the time set and ensure that every MDA is attended to, the legislature adopted joint meetings method whereby the Senate and House of Representatives standing committees meet with each of the MDAs.
The rush in the presentation and defending of their allocations sometimes created tensions and confusions between the lawmakers and some heads of MDAs during the joint committee meetings. These, sometimes forced them to go into closed door sessions for amicable resolution of their misunderstanding.
For example, there was a heated argument at a 2025 budget defence session on Thursday, January 17 as lawmakers tried to make sense from the details of last year’s budget of the Nigeria Police Force, NPF. Trouble started when the Inspector General of Police, IGP, Kayode Egbetokun, was giving a breakdown of funds used for the construction of five Zonal Police Headquarters in the country.
Egbetokun had barely started his presentation when a member of the House of Representatives, Mark Esset from Akwa Ibom interjected – questioning why the details of what the IGP read is not contained in the document given to him. But it was Senator Onyekachi Nwebonyi (APC Ebonyi North) that turned on the heat, insisting that as a senator, he should have the appropriate copy of what the IGP dished out to them.
Nwebonyi said: “We are here to serve Nigerians and Nigerians should see us as a very serious institution. We are not against the presentation of the IGP. But I, as the Senator of the Federal Republic of Nigeria, should have what the IGP is reading.”
All efforts to explain his intention were thwarted by shouts and rowdiness which apparently led Nwebonyi’s anger to rapidly grow more intense after his Point of Order was overruled by the chairman of the House of Representatives Committee on Police Affairs, Hon. Abubakar Yalleman to allow the IGP continue with his presentation. With his anger at boiling point, Nwebonyi took his belongings and stormed out of the budget defence exercise, but as he did, he kept exchanging hot words with mostly House of Representatives members who jeered at him as he took his exit.
Aside the drama and tension, there were instances whereby the lawmakers applauded some MDAs for good jobs done, especially implementation of the previous budgets. Similarly, they helped many to jack up their allocations and revenue targets, having considered them as inadequate.
One of such MDAs that received commendation from the legislature is the Federal Inland Revenue Service, FIRS for surpassing its revenue collection target of N19.4trillion in 2024 to N21.6trillion. Impressed by the performance, the National Assembly through its Joint Committees on Finance, however, proposed N25 trillion tax collections or revenue generation target for FIRS in 2025 fiscal year.
The deputy chairman, House of Representatives Committee on Finance, Hon. Saidu Musa Abdullahi particularly commended the Executive Chairman of FIRS, Mr Zacch Adedeji for the great performance which he described as unprecedented. “The feat attained by FIRS on revenue collection or generation in 2024 was unprecedented and a very wonderful one, worthy of commendation. That you surpassed the target set for the agency in the 2024 Appropriation Act from N19.4trillion to N21.6trillion, is very cheering and encouraging,” he said.
He, however, urged the FIRS boss to understudy the template being used in South Africa which, according to him, generates revenue from tax collections far above that of Nigeria despite having smaller population of about 45 to 54 million people when compared to 200million population in Nigeria.
“We shall give you total support on your tax reform, but you need to bring in more number of taxable citizens into net from the informal sector,” Abdullahi said.
Also commending FIRS for surpassing projected tax revenue in 2024, Senator Joel-Onowakpo Thomas (PDP Delta South) in his remarks, said taxes all over the world is the way to go, the very reason, FIRS must deepen the process through planned reform. He suggested that the committee should increase projected revenue for FIRS in 2025 to N30 trillion.
Similarly, the National Assembly Joint Committees on Finance has jerked up revenue projections for Nigeria Customs Service, NCS from proposed N6.5trillion to N12trillion in the 2025 fiscal year. It also increased that of the Nigeria Deposit Insurance Corporation, NDIC from N163.3billion to N180billion.
The decisions were made when chief executives of the two agencies appeared before the joint committees for defence of 2024 budget and revenue projections for 2025 fiscal year.
First to make presentation on revenue projections for the 2025 fiscal year was the Comptroller General of Nigeria Custom Service, Bashir Adeniyi who said that having generated N6.1trillion in 2024, Customs will comfortably generate N6.5trilliin in 2025.
But the chairmen of the joint committees, Senator Sani Musa and Hon. James Faleke in their separate remarks told the NCS boss that the 2025 projected revenue should be far above N6.5trillion.
Senator Musa in particular said N10million should be the minimum revenue generation target for Customs in 2025 which was however increased to N12trillion based on suggestions made to that effect by some other members of the committee.
Similar ambitious revenue generation projection was made for the NDIC when its Managing Director and Chief Executive Officer, Mallam Bello Hassan made presentation on defence of 2024 budget and revenue projection for 2025.
The NDIC boss in his presentation informed the committee that N163.3billion was projected as revenue generation in 2025 which was described as very low by the committee chairman, Senator Musa.
The chairman, after consultations with Hon. Faleke, proposed N180billion for the Insurance body as projected revenue for 2025.
The joint committee has also jerked up the projected revenue of the Nigeria Port Authority, NPA for 2025 from N997billion to N1.75trillion. The increased revenue projection, according to the chairmen, was done for maximization of the 56 revenue sources NPA has.
Managing Director of NPA, Dr. Abubakar Dantsoho had in his presentation, informed that the agency remitted N753billion into Consolidated Revenue Fund and projected N997billion for 2025 fiscal year.
During his own presentation before the joint committees, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, NNPCL, Malam Mele Kyari said the company remitted N10trillion to the federation account as at September 2024. He also declared that NNPCL remains the only company in Nigeria that publishes 100% of its account on a yearly basis.
Kyari added that the company is the highest tax payer, highest payer of royalty and dividends in the country.
He, however, said that the company want forensic audit to be conducted on money spent by it for stabilization of price of petrol from January to September 2024 and uninterrupted supply of the product.
In its own, the Fiscal Responsibility Commission, FRC, has secured the assurance of the legislature for allocation of adequate funds as well as other agencies of government that play watchdog roles. According to the Red Chamber, those agencies cannot continue to be weakened by underfunding, given their strategic and critical roles in compelling revenue generating agencies to comply with financial regulations.
Chairman, Senate Committee on Finance, Senator Sani Musa (APC Niger East), stated this during the 2025 budget defence of the FRC, when its chairman, Victor Muruako appeared before him. The chairman lamented the underfunding of the commission, noting that the principle of budget envelope which makes its mandatory for the Budget Office to make proposals for them was hampering their activities as adequate funds have never been allocated since its establishment in 2007.
The Fiscal Responsibility Commission was established in 2007 under the Presidency by the Act of Parliament to “promote a transparent and accountable government financial management framework for Nigeria.”
The lawmaker explained that the parliament will look into FRC’s 2025 budget with a view to reconsider it. “One major area that we looked at is funding. You are not funded very well. And you are just like the watchdog of all those agencies that generate revenue. You are more like the Office of Auditor General. But yours is different because you mainly look at revenue and remittances. What they’ve done has outweighed you. And honestly, Mr. Chairman, I will commend you because you’ve been up and doing all this,” Musa said.
Earlier in his budget performance report, the FRC boss said, they were doing their best, but inadequate funding has posed a major challenge to enforcing remittances in the Consolidated Revenue Fund, CRF. According to him, the 2025 budget of N1.6 billion for the Commission was grossly inadequate for the extensive work the agency was into, while he expressed the hope that lawmakers will reconsider funding of the agency.
Also, the National Assembly considered the N8.9billion budget for the Ministry of Information and National Orientation as grossly inadequate and therefore summoned the Minister of Budget and Economic Planning, Senator Atiku Bagudu for required consultation on bigger envelope for the ministry.
Specifically, the chairman of the Senate Committee on Information and National Orientation, Senator Kenneth Eze (APC Ebonyi Central), stated when the minister, Alhaji Mohammed Idris, appeared for defence of 2024 budget and presentation on budgetary proposal for 2025 that the decision to reject the budget was unanimous and had been adopted by all members of the committee.
“Last year, the minister appeared before the National Assembly and in particular the Senate and we observed the very insignificant and minimal appropriation for the entire ministry considering the fact and the role that the information sector plays in this country and we are saying we want to drive a transformative agenda of Mr. President.
“We deemed it necessary last year to recommend to the Appropriation Committee that there is every need for the information sector to be well funded and in doing that by the end of the day, we didn’t get the expected result,” he explained.
Earlier, the minister posited that the mandate of the ministry as a service provider is to project and defend the image of the country, as well as dissemination of information and promotion of national values. “The year 2024 was pivotal for the ministry as we rolled out a series of innovative and impactful programmes to enhance public communication, deepen citizens’ engagement, and promote national values,” he said.
But for the Ministry of Women Affairs, it had its 2025 budget proposal soared to N78.5 billion compared to N6.5billion total allocation appropriated in 2024. The wide gap of N71 billion between total budgetary allocation for the ministry in 2024 and the proposal made for 2025 fiscal year as explained by the Minister of Women Affairs, Hajiya Imaan Sulaiman-Ibrahim, arose from the N68 billion counterpart funding provided for the World Bank project.
Hajiya Sulaiman-Ibrahim explained to members of the National Assembly Joint Committee on Women Affairs during budget defence session for 2025 fiscal year that N7.4billion is the sum earmarked for core capital projects of the ministry this year. She added that N2.6billion is proposed for personnel cost while N810million is proposed for overhead cost.
However, the minister in her presentation on performance of the N6.5billion 2024 budget, lamented that only 18% of N4.6billion capital votes, was released which is N869.8million, but added that N1.3billion appropriated for personnel cost in 2024 and N565.8million appropriated for overhead costs, got 100% implementation.
Being new in the ministry, the Senator Ireti Kingibe and Hon. Kafilat Ogbara-led joint committee, urged the minister to study the terrain thoroughly and correct any observed lapses. They commended the ministry for generating over N4million as internally generated revenue in 2024, which according to them, has never happened before.
On jobs creation, the Ministry of Humanitarian Affairs and Poverty Reduction, has proposed N260billion appropriation to the National Assembly to fulfil its mandate of creating two million jobs in the 2025 fiscal year. The minister in charge of the ministry, Professor Nentawe Yilwatda made the presentation to the National Assembly joint Committee on Poverty Reduction and Social Investment during the 2025 budget defence session.
He said: “The National Assembly should note that the ministry has a mandate to create two million jobs in 2025. This will be achieved through a combination of efforts. The ministry has already procured starter packs 7 that enable over 110,000 beneficiaries to embark on self-reliant ventures. These starter packs are vital tools for entrepreneurship and economic growth.”
While responding to questions bothering on the non-implementation of the 5,000 vulnerable Nigerians, the minister assured that efforts will be intensified to get Mr. President’s approval for the release of the sum of N3.7billion approved in the 2024 Appropriation Act as grant to 5,000 vulnerable groups domiciled with Access Bank for onward disbursement to the beneficiaries.
According to him, the ministry’s 2025 overhead ceiling was increased from the sum of N682.682.013billion in 2024 to the sum of N978,386,116.00billion in 2025, representing 43.31% increase above the 2024 budget with a view to cushioning effect of inflation.
He, however, lamented that the capital budget ceiling of N4,601,092.674.00 would not be able to address the ever increasing humanitarian challenges, saying “it is worth noting that global humanitarian support from donor countries have dropped, and most donors are targeting the Middle East, Sudan and Ukraine.
In their separate responses, the co-chairmen of the joint committee, Senator Idiat Adebule and Hon. Abdulkadir Jobe, assured Yilwatda of the readiness of the National Assembly to provide sufficient fund for the ministry in 2025 fiscal year for its various intervention programmes geared towards reduction of poverty among the vulnerable Nigerians and mitigating humanitarian crises.
Another cheery news came from the Director General of the Bureau of Public Procurement, BPP, Dr. Adebowale Adedokun, who said that the agency saved Nigeria N1.9trillion from contracts fraud over the years. He disclosed this during budget defence session BPP had with the Senate Committee on Public Procurement.
According to him, BPP set up 17 years ago, precisely on June 14, 2007, is a key stakeholder in the war against corruption in the country, particularly those that have to do with contracts awards, inflation and diversion.
“BPP has within the last 17 years been changing the landscape of public procurement in Nigeria by ensuring transparency, fairness and efficiency on contracts awards and execution. BPP has been saving the country from loss of at least N40 billion annually to contracts inflation, diversion of public fund and poor service delivery.
“Records from our price intelligence unit indicate that total money prevented so far from being diverted to personal pockets from contracts award is N1.9trillion. BPP has over the years been significantly contributing to increase revenue generation by the relevant agencies like the Federal Inland Revenue Service, FIRS, Nigeria Pension Commission, PENCOM, etc,” Adedokun stressed.
In their comments, members of the committee chaired by Senator Olajide Ipinsagba (APC Ondo North), wondered how BPP with just 158 workers, would effectively and efficiently monitor contract awards and execution of over 800 government agencies under its purview. They, therefore, directed the Director General to include employment more workers in the agency’s 2025 budget.
However, both chambers of the National Assembly will not be able to pass the 2025 budget in this January as the exercise is expected to end on the last day of the month.
Before now, especially during the 9th National Assembly, headed by Ahmad Lawan as President of the Senate, and Femi Gbajabiamila as Speaker of the House of Representatives, the country’s annual budget circle was operated from January to December. To keep with the trend, annual budgets were submitted by President Muhammadu Buhari two months before the end of the year. Lawmakers on the other hand worked round the clock to pass the budget before embarking on their Christmas/New Year breaks.
Unfortunately, that trend appears to have been jettisoned with the late presentation of the national budget by President Tinubu and this has made it difficult for the current National Assembly being led by Godswill Akpabio as the President of the Senate and Tajudeen Abbas as the Speaker of the House of Representatives to work on the annual document and pass it into law in record time.
It is, however, expected of the Tinubu administration to restore and ensure sustenance of the annual fiscal circle, not only for the ease of scrutinising the estimates by the legislature, but effective planning and implementation of the budget in ways that it will touch the lives of the people and improve on national development.
