Increase of 2025 appropriation bill to N54.2trn: salute to a transparent President, by Kola Amzat

Literally, government budget is a projection of government’s revenues and expenditure for a specific period, usually referred to as a fiscal or financial year, which may or may not correspond with the calendar year.

As fundamental as Appropriation Bill to government fiscal planning is, as well as maintaining financial focus in governance, successive leaders of government had totally been found wanting, as they had derelict in their responsibility to present to Nigerians the true state of nation accrued revenues and even, diverse areas the revenues had been

expended in the past.

In a country like ours, where unexpected revenues flow from all directions, even sometimes, when government budget might have been prepared and already sent to national assembly for passage, it’s incumbent on the president to be as transparent and truthful as much possible to reasonably provide insight for the country men & women the depth of the nation resources.

This is exactly what President Bola Tinubu has done by increasing 2025 Appropriation Bill from ₦49.7 trillion to ₦54.2 trillion, with the additional projected revenues of totaling ₦4.5 trillion coming from Federal Inland Revenue Services (₦1.4 trillion), Nigerian Customs

Services (₦1.2 trillion), as well as other federal government owned agencies (₦1.8 trillion).

Remarkably, the request to effect the adjustment has been sent to both chambers of the national assembly, with the president anchoring the increase on the outlined revenue surpluses from various government bodies as primary drivers of the adjustment.

According to the information contained in the request made onto national assembly, the additional funds have provided the government with the fiscal window to expand the budget and address critical national priorities.

But, the crux of this Piece is to applaud and pay tribute to the president for his transparency, probity and high degree of patriotism for factoring the additional revenues of ₦4.5 trillion into the 2025 Appropriation Bill.

The euphoria that greeted the original 2025 Appropriation Bill of ₦49.7 trillion hasn’t died down, with quite a number of Nigerians describing it as unprecedented, audacious and very unusual in the annals of Nigeria fiscal initiatives, as it purposed to significantly turn-around the nation infrastructures, security architecture, medical facilities, educational infrastructures and more importantly, to contribute significantly in stabilizing the economy. 

If desire, the president could have conveniently and seamlessly hide under the guise of accolades that the original Appropriation Bill of ₦49.7 trillion has variously attracted to APPROPRIATE the additional revenues in question to private account, instead of adding it to the original sum, already awaiting the passage into law by national assembly.

If the president has resolved to opt for appropriating the additional sum of ₦4.5 trillion into private account, absolutely nothing would have happened.

Indeed, it wouldn’t have come to the knowledge of Nigerians that there is even, additional revenues flowing from any other sources.

Besides been transparent, this president is also fully aware of huge resources required for the implementation of his 7 point Agenda as encapsulated in the Renewed Hope-Defense & internal security, macro-economic stability, improved investment environment, human capital development, poverty reduction as well as social security, poverty reduction.

The president is not oblivious of the fact that, every penny of the nation resources is required to be pooled together to fund the lofty 7 point Agenda, as well as all other developmental initiatives spread all across the country. Hence, his desire to factor the additional revenues into the original budget estimates.

Meanwhile, this writer vehemently disagree with the submissions of quite a few Nigerians who are of the view that the government should have deployed the additional revenues of ₦4.5 trillion to reduce the deficit finance portion of the budget.

In accounting world and even, global budget planning, it’s traditional

that a contemporary budget process is not complete without component of deficit financing; what the architects of budget should always guide against is a debt financing that would be overwhelming and unreasonable, when juxtaposed with the total budget.

The deficit finance component of ₦13.39 trillion of 2025 Appropriation Bill is therefore germane, apt and good enough to drive the aims and objectives of the bill.

Of course, no government or corporate body could conveniently operate without deficit financing. The caveat remains that, the deficit financing must be effectively managed, amongst other components of the budget.

Kola AMZAT (FCA, FCIB)

Lagos based Financial & Management Consultants,

09077509348.