National Assembly Reverse Passage Of 2025 Budget, Make Adjustments

Both chambers of the National Assembly have reversed the passage of the 2025 national budget earlier approved last week.

Naija News reports the reversal by both the Senate and the House of Representatives is to effect corrections on some errors in line items under capital and recurrent expenditures.

While the total budget size remains at ₦54.9 trillion, the capital expenditure has been reduced by more than 500 billion naira and the recurrent expenditure was increased by the same amount.

The bill, as passed by both chambers, sequel to a motion from the chairman of the joint committee on appropriations, Senator Adeola Olamilekan and the appropriations committee chairman in the house Abubakar Kabir, now puts recurrent expenditure at ₦13.588 trillion, while the capital expenditure is ₦23.439 trillion.

The details of the adjustments are:

Ministry of Defence – Reduced from ₦2.51 trillion to ₦2.49 trillion.

Ministry of Police Affairs – Adjusted from ₦1.225 trillion to ₦1.224 trillion.

Pensions, Gratuities, and Retirement Benefits – Increased from ₦950 billion to ₦1.44 trillion.

Military Pensions and Gratuities – Raised from ₦252.6 billion to ₦383.9 billion.

National Pension Commission (PENCOM) – Increased from ₦529.4 billion to ₦804.7 billion.

Budget Cuts to Key Ministries

Presidency – Reduced from ₦144.4 billion to ₦142.7 billion.

Federal Ministry of Agriculture and Food Security – Cut from ₦1.95 trillion to ₦1.83 trillion.

Federal Ministry of Works – Adjusted from ₦2.04 trillion to ₦2 trillion.

Federal Ministry of Education – Reduced from ₦953.9 billion to ₦944.6 billion.

The earlier version of the 2025 budget passed by the National Assembly last Thursday, 13th February, had ₦13.064 trillion allocated for recurrent and ₦23.963 trillion went to capital.

Meanwhile, the currency in circulation within the Nigerian banking sector surged to ₦5.24 trillion in January 2025, marking the highest level ever recorded by the Central Bank of Nigeria (CBN).

This significant increase, up from ₦4.88 trillion in December 2024, represents a ₦1.22 trillion rise from the ₦3.65 trillion reported in January 2024.

Analysts attribute the rise to sustained printing of the local currency by the CBN and the escalating inflation rate in the country.

The surge also reflects growing public distrust in the banking system, with many Nigerians opting for cash transactions amid economic uncertainty.

When CBN Governor, Olayemi Cardoso assumed office in September 2023, currency in circulation stood at ₦2.76 trillion.