Tinubu communicated the budget adjustment in separate letters to both the Senate and the House of Representatives, which were read during today's plenary session by Senate President Godswill Akpabio.

But, How does the increase in the 2025 budget align with the government's broader economic growth and development goals for the country?

According to President Bola Tinubu, the increase is driven by $1.9 billion in additional revenue from the Federal Inland Revenue Service $1.6 billion from the Nigeria Customs

Service, and $2.4 billion generated by other government owned agencies. Economist Professor Adeola Adequan Gu suggests that the approval of the budget is likely to be delayed,” What we have expected that by now that the budget to be passed, Nigeria will have a functional budget for 2025. But that's not so. And the with the new request from the from Tinubu, it is likely that that would delete folder.

The passage of the of the of the of the of the budget by. Minimum of few days or week weeks now I mean that again will create some certainty in the economy and I mean the earlier the budget is passed usually I think it trained for some few years. Must be to have a functional budget by January 1, so this new request is likely to cause a delay, but more importantly is that Tinubu is spending money that has not even been realized. In my view, I think this.

Proposals from the revenue agencies maybe indicated that they were able to raise more revenue for the financial year. And Tinubu that's going ahead to spend this expected revenue and it's only realized.”

Adeola says the potential implications of the budget increase on key sectors like infrastructure, education and healthcare, and an impact on ordinary citizens is that it's likely to increase the deficit.

“So most like this is going to increase the deficit really, because in many cases historically revenue in Nigeria is. You know, usually you know, you know, optimistic. They guys feel optimistic in its revenue projection.

And then at times that is not usually realized. So I have not my strong hunch is that this may lead to increase. In the in deficit with the consequent impacts on the economy or macroeconomic outcomes, especially inflation and the macroeconomic stability.

“No, it's not very clear, you know. You know where this body is going to be spent. You know, I think the President has established, as you know, some regional development commissions. And there are also situations that it was always spent on the food security and related issues. Where the National Assembly will decide where the money will go eventually.

But hopefully the increase would the going to key priority areas of the government which as stated previously is security and national security is very important because it is tied to. So many things. It will help increase food production. It will reduce all the cost that the corrupt is bearing down due to soldiers dies and the security and hopefully more also going to education and.

At heads that will prove the welfare. And the human occupants your ideas. As the government looks to boost key sectors including infrastructure, education and healthcare, the path forward remains uncertain, with concerns about the potential increase in the deficit.

While the additional revenue may offer some financial breathing room, questions about spending priorities. And their impact on ordinary citizens still linger. Only time will tell how this budget adjustment will shape the country's economic future.

--ChannelAfrica--