2025 Poverty Alleviation Budget: FG And States Propose N74 Trillion Plan

In an ambitious move to alleviate poverty and enhance living standards, the Federal Government and 35 states in Nigeria have unveiled a proposed budget of N74.249 trillion for 2025. This significant sum reflects a commitment to tackling economic challenges and driving development. However, Rivers State, grappling with political instability, and the Federal Capital Territory (FCT), Abuja, are yet to announce their budgets.

Key Allocations: Capital vs. Recurrent Expenditure

The proposed budget allocates N35.68 trillion (48.05%) to capital projects aimed at infrastructure and development, while N38.57 trillion (51.95%) is designated for recurrent expenditures, including salaries and overheads. Despite this, legislative approval and potential supplementary appropriations could see these figures rise by the end of 2025.

Notably, most states prioritized capital expenditure, with the exception of Ekiti, Osun, and the Federal Government.

Ekiti State plans to spend N183.46 billion of its N375.79 billion budget on capital projects, with N192.33 billion earmarked for recurrent costs.
Osun State has allocated N144.23 billion for capital expenses out of its N390.03 billion budget, while recurrent spending takes N245.80 billion.
The Federal Government’s proposal includes a total budget of N49.74 trillion, broken down into N30.45 trillion for recurrent spending and N19.29 trillion for capital projects.

Federal Budget Breakdown:

Recurrent Expenditure: N16.33 trillion for debt servicing, N14.12 trillion for other non-debt expenses.
Capital Expenditure: N14.85 trillion for project execution, and N4.44 trillion for statutory transfers.

Top and Least Spenders

Heavy spenders include Lagos (N3.005 trillion), Niger (N1.5 trillion), Ogun (N1.05 trillion), Delta (N979.2 billion), Enugu (N971.8 billion), and Akwa Ibom (N955 billion).

In contrast, the least spenders are Gombe (N320.11 billion), Yobe (N320.81 billion), Ekiti (N375.79 billion), Nasarawa (N382.57 billion), and Ebonyi (N396.59 billion).

Regional Comparisons

By region, the South-West leads with a combined budget of N6.20 trillion, while the North-East lags behind at N2.61 trillion.

Other zones include:
- North-West: N4.38 trillion
- North-Central: N4.03 trillion
- South-South (excluding Rivers): N3.81 trillion
- South-East: N3.48 trillion

Lagos, the nation’s economic hub, stands out with a proposed budget of N3.005 trillion, surpassing the combined budget of six North-Eastern states (Adamawa, Bauchi, Borno, Gombe, Taraba, and Yobe) at N2.61 trillion. Interestingly, Lagos’ budget is just N476 billion shy of the combined budgets of five South-Eastern states (Abia, Anambra, Ebonyi, Enugu, and Imo) at N3.48 trillion.