posted 19th May 2025
BudgIT Flags 2025 Federal Budget as Non-Compliant and Opaque
Lagos, Nigeria – 19 May 2025
BudgIT, a prominent civic-tech organisation advocating for transparency in Nigeria’s public finance, has raised serious concerns over the Federal Government’s 2025 Budget, labelling its formulation as legally questionable and lacking adequate disclosure, particularly in its revenue framework. The critique comes on the heels of the budget’s presentation, highlighting significant gaps in fiscal responsibility and transparency.
The 2025 Budget, initially proposed at N47.9 trillion by President Bola Ahmed Tinubu, was later revised to N54.2 trillion in a presidential letter citing increased revenue expectations. The National Assembly further adjusted the figure to N54.9 trillion, but without providing the macroeconomic or fiscal analysis to justify the additions—a move BudgIT deems non-compliant with the Fiscal Responsibility Act (FRA) of 2007.
Section 12 of the FRA mandates that aggregate expenditure must not exceed estimated aggregate revenue plus a deficit of no more than 3% of the Gross Domestic Product (GDP). Additionally, the Act stipulates that expenditure and revenue should not surpass the estimated Gross Domestic Product or any sustainable percentage determined by the National Assembly for each financial year. BudgIT notes that, based on the Budget Office’s GDP projection of N338 trillion, the total spending should not exceed N51.95 trillion. However, the current appropriation exceeds this limit by N3 trillion, raising concerns about fiscal discipline and legal compliance.
The organisation also pointed out the government’s continued failure to provide a detailed revenue breakdown for the 2025 fiscal year. While references have been made to certain revenue sources, no comprehensive data has been released for independent scrutiny, further shrouding the budget in opacity. BudgIT highlighted that the latest available Federal Budget Implementation Report only covers the second quarter of 2024, despite formal requests for more recent updates.
Vahyala Kwaga, BudgIT’s Group Head of Research and Policy Advisory, expressed alarm at the regression in fiscal transparency. “Transparency is not a favour citizens receive; it is a constitutional and moral obligation of the government,” Kwaga stated. “The 2025 Budget, as it stands, fails the basic tests of legality, transparency, and economic prudence. At a time when Nigeria faces rising debt, inflationary pressures, and critical development challenges, the importance of fiscal clarity cannot be overstated. Citizens have the right to know how public funds are sourced and allocated, and the government has the duty to provide such information.”
Kwaga further warned of a worrying shift towards arbitrariness and opacity in the presidency’s fiscal conduct, noting that unchecked actions could undermine Nigeria’s significant gains in institutionalising transparency and compliance within its public finance framework.
BudgIT has called on the Presidency to uphold the principles of transparency, due process, and legal compliance in managing public funds. The organisation also urged citizens, civil society groups, the private sector, and the international community to demand the full revenue framework underpinning the 2025 Budget to ensure accountability.
