
…Nigeria’s revenue may double above N49.7trn in 2026
The Chairman, Senate Committee on Appropriations, Senator Solomon Adeola, on Thursday, lamented that a lot of revenue has been held hostage by the Nigeria National Petroleum Company Limited (NNPCL).
Adeola who spoke at the National Assembly during a stakeholder’s public hearing/ interactive session on the 2025 Appropriation bill, also alleged that there were still some elements of subsidy that were being treated as an operational expense in their document that they still needed 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. The unfounded allegations of missing ₦3.0 trillion, misrepresented the facts on the funds appropriated for agencies whose funds are on the first-line charge,” he stressed.
He also pointed out the focus of the 2025 Appropriation Act, maintaining 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 highlighted that in the past the country borrowed money to stabilize the Naira so that the exchange rate could be somehow good and that it was free from threats, saying: “To stabilize the Naira, we are borrowing. CBN is doing a lot of things behind the scenes. But when this administration came, it said there was no need for that. If you recall, we are operating a free economy.
“We must be seen to be operating that free economy and it throws everything to the table. No more subsidies, no more exchange rate difference and no more electricity tariff. By so doing, what we are trying to do, this 49.7 trillion you are seeing, maybe by next year it will have doubled because by then, there is still a lot of our revenue that still needs to be free.
“By the time all this comes to pass, I can tell you maybe next time when we are gathered here, we will start having a budget of a minimum of about 100 trillion naira. So we are walking around the clock, especially on this side of the divide, to ensure that we shore up our revenue.
“We are in the consciousness of all of these, that we are not doing well in terms of our budgetary provision and everything. Even to fund the budget, is somehow a struggle. We found out that we projected revenue of certain amounts and at the end of the day, we can’t meet the target. To bridge the gap, we have to go and borrow. So it will add more to the deficit you are seeing.
“So this current administration is noting all this and they are working around the clock. And I can tell you as I said, by next year we have a budget that will double this one you are, that we have today. So I can assure you we are working.
According to him, the fiscal direction includes “restore macro-economic stability, deliver tangible infrastructure improvements, enhance human capital development through robust investments in security, education and healthcare, reduce poverty by expanding social safety nets and the creation of millions of decent paying jobs and employment opportunities, while fostering a business-friendly environment capable of unlocking domestic investments and attracting foreign direct investments, across multiple sectors of the economy.”
He disclosed that the National Assembly would follow up on MDAs all year round to ensure that the promises made by the executive to ensure a decline in inflation from an average of 27.85% in 2024 to 15% in 2025, the exchange rate stabilizes at ₦1500 to $1, crude oil production of 2.06 million barrels per day (mbpd) in 2025, and benchmark oil price projected at $75 in 2025, is realised.
Budget Breakdown:
Senator Olamilekun further provided a breakdown of items in the 2025 budget proposal as follows
Projected Aggregate Revenue: ₦36.35 trillion
Projected Aggregate Expenditure ₦49.74 Trillion
Budget Deficit ₦13.38 Trillion.
Statutory Transfers 8.9%
Debt Servicing / Sinking Fund 32.8%
Recurrent (non-debt) Expenditure 28.4%
Capital Expenditure 29.9%
On this, the Appropriation Committee Chairman argued that the current expenditure component would give room to execute the government’s tax reforms with a view to taking advantage of all dormant revenue sources.
He added that it would further seek short and medium-term measures to drive down recurrent and debt service costs for the country.
Continuing, he emphasised the need to redirect the economy to capital expenditures and infrastructural development that would create a supporting environment for business growth and economic development.