National Assembly Revises 2025 Budget: Capital Expenditure Reduced, Recurrent Spending Increased by Over 500bn

The National Assembly on Tuesday undertook a comprehensive review of the 2025 budget, which had been passed just last week, making significant adjustments by reducing the capital expenditure component and increasing recurrent spending by more than N500 billion.

However, despite these changes, the overall budget size remains unchanged at N54.99 trillion—a figure that underscores the importance of meticulous fiscal oversight in the wake of identified discrepancies. Lawmakers explained that the review was necessitated by errors uncovered by the Joint Appropriation Committee, which had spotted inaccuracies in the initial figures approved by both the Senate and the House of Representatives.

Francis Waive, Chairman of the House Committee on Rules and Business and a member of the APC from Delta, was at the forefront of the motion for this critical review. Waive clarified that the corrections stemmed from the committee’s discovery of errors in the figures passed earlier, emphasizing that it was their duty to address these mistakes to ensure that every Naira allocated was accounted for accurately. In a climate where fiscal responsibility is paramount, this move signals the National Assembly’s commitment to both transparency and accountability in the management of public funds.

The adjustments made during Tuesday’s plenary sessions reveal a deliberate reallocation within the approved budget. While the statutory transfers of N3.64 trillion and N14.32 trillion remain intact, other components of the budget have been reconfigured. Specifically, the recurrent expenditure—which covers the routine costs of government operations such as salaries, maintenance, and administrative expenses—has been increased by over N500 billion. This increase is intended to bolster the everyday functioning of government agencies, ensuring that the operational efficiency of public institutions is maintained without disruption. On the other hand, the capital expenditure, typically earmarked for long-term infrastructure projects and investments in public assets, was reduced by the same amount. This recalibration is likely to have implications for ongoing and planned projects involving roads, bridges, and government buildings, potentially prompting a re-examination of the priority and scope of these projects.

In the detailed corrections made during the session, several ministries and agencies have seen varied adjustments. Ministries such as Defence and Police Affairs, along with entities like the National Pension Commission, Universities Pensions, the Office of the Head of the Civil Service of the Federation (responsible for civilian pensions), and the Pension Transition Arrangement Directorate, experienced reductions in their budget estimates. These cuts could reflect a broader reassessment of spending priorities, possibly driven by revised forecasts or an effort to tighten expenditure controls in areas where operational efficiencies can be improved. Conversely, the budget proposals for key government bodies were increased. Among those benefiting from the upward revisions were the Presidency, the Federal Ministry of Information and National Orientation, the Office of the National Security Adviser, and the Office to the Secretary to Government of the Federation. Additionally, several prominent ministries including Agriculture and Food Security, Works, Labour and Employment, Transportation, Innovation, Science and Technology, Education, Environment, Health, and Social Welfare saw their proposed budgets rise, indicating a strategic shift towards reinforcing agencies that are seen as critical to the nation’s immediate and long-term interests.

The reallocation of funds within the budget framework carries significant implications for Nigeria’s economic and administrative landscape. By increasing recurrent expenditure, the Assembly appears to be prioritizing the seamless operation of government services. Enhanced funding for routine expenses such as personnel salaries, maintenance, and administrative operations is expected to strengthen the day-to-day functionality of public institutions. This is particularly vital in times of economic uncertainty, where the reliability and efficiency of government services can have a direct impact on public confidence and overall social stability. However, the reduction in capital expenditure may have mixed consequences. While reallocating funds to cover immediate operational needs might provide necessary short-term relief, it could also delay or scale back critical long-term infrastructure projects. These projects, often pivotal for sustained economic growth and improved public services, are essential for job creation and enhancing Nigeria’s global competitiveness. The balance between addressing immediate fiscal needs and investing in the future remains a contentious and complex issue.

This decision to amend the budget mid-stream reflects the legislative body’s readiness to adapt to emerging fiscal challenges. Lawmakers stressed that the corrections would not alter the overall size of the budget but would serve to fine-tune the allocation of resources to better align with current governmental priorities. The meticulous review process, carried out in both the Senate and the House, underscores the collaborative effort among lawmakers to uphold the integrity of the budgetary process. It also serves as a reminder that continuous oversight is crucial, even after the initial passage of a budget, to ensure that financial planning remains robust and responsive to the evolving needs of the nation.

Critics of the revised allocations argue that the reduction in capital expenditure could jeopardize long-term infrastructural development, potentially hindering economic growth over time. Proponents, however, contend that ensuring the smooth operation of government services is equally, if not more, critical in the present context, particularly when daily operational efficiency directly affects the well-being of citizens. This debate reflects the broader tension in fiscal policy between investing in the future and managing the current demands of governance.

As the revised budget moves toward final approval and subsequent implementation, it will undoubtedly be scrutinized by both public and private sector stakeholders. The increased allocation for recurrent expenditure is expected to bolster public services, while the cut in capital expenditure may force a strategic reassessment of long-term development projects. In the coming months, the effectiveness of these adjustments will be closely monitored, and their impact on Nigeria’s economic trajectory will be a key focus for analysts and policymakers alike.

The National Assembly’s proactive stance in revising the 2025 budget illustrates a firm commitment to fiscal discipline and adaptive governance. By addressing errors in the initial figures and realigning expenditure priorities, lawmakers are ensuring that the budget remains both accurate and strategically sound. This approach not only reinforces public confidence in the government’s financial management but also sets a precedent for continual review and correction in the face of unforeseen challenges.