Federal Government Proposes ₦54.2 Trillion Budget for 2025 Amid Economic Concerns ABUJA – The Nigerian government has proposed an upward revision of the 2025 national budget to ₦54.2 trillion, marking a 9.1% increase from the initial ₦49.7 trillion presented to the National Assembly on December 18, 2024. President Bola Ahmed Tinubu formally communicated this adjustment through a letter addressed to the Senate, which was read during a plenary session by Senate President Godswill Akpabio. The letter, titled “2025 Appropriation Bill: Allocation of Additional Revenue of ₦4.53 Trillion,” outlined the sources of the extra funds and their intended allocations. Sources of Additional Revenue in the 2025 Budget The budget increase stems from improved revenue generation by key government agencies: With the added revenue, the total 2025 budget size will expand from ₦49.7 trillion to ₦54.2 trillion, which, according to the president, aligns with his administration’s commitment to inclusive growth and economic security. Proposed Allocation of Additional Funds The additional ₦4.5 trillion will be directed toward critical sectors, including: Concerns Over Inflation and Fiscal Deficit Despite the government’s optimism, economic experts have raised concerns about the implications of the budget expansion, citing potential risks such as: Economists Warn Against Fiscal Imbalance According to David Adonri, Vice Chairman of Highcap Securities Limited, the budget increase could negatively impact macroeconomic stability. He criticized the government’s failure to balance its fiscal policies, warning that excessive public spending amid limited goods supply would exacerbate inflation. Similarly, Oluwole Adeosun, former President of the Chartered Institute of Stockbrokers (CIS), expressed concerns over the growing budget deficit, currently at ₦13 trillion. While he acknowledged the need for higher government spending, he cautioned that the deficit must be properly managed to avoid excessive public debt accumulation. Revenue Projections and Overestimation Risks Public finance analyst Clifford Egbomeade questioned whether the projected revenues from FIRS, Customs, and other agencies were realistic. He warned that revenue underperformance could widen the fiscal deficit, forcing the government to borrow more and worsening economic instability. Furthermore, Dele Oye, President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), expressed concerns over the lack of clarity regarding the revenue projections. He stressed the need for transparency to ensure that the additional funds are judiciously allocated to productive sectors. Public Reactions: Economic Hardship on the Rise? Nigerians have reacted strongly to the budget increase, with many expressing concerns about rising inflation, economic hardship, and government insensitivity. Entrepreneur Endurance Osibanjo criticized the government’s approach, stating that rather than alleviating economic hardship, policymakers are imposing heavier burdens on citizens. Joshua Ajewole, a publisher, echoed this sentiment, arguing that government policies widen the gap between the rich and the poor. Similarly, journalist Manoah Kikekon decried the continuous price hikes, stating that the administration is making life more difficult for Nigerians. Public relations expert Iranitiola Olutayo warned that increased government spending without accountability and proper execution could lead to economic stagnation rather than progress. Conclusion: Will the Budget Increase Benefit Nigerians? While the ₦54.2 trillion budget aims to stimulate growth, the lack of transparency, revenue concerns, and potential inflationary pressures raise critical questions. Experts argue that for the increased budget to have a meaningful impact, it must be backed by effective fiscal discipline, strategic execution, and a commitment to reducing Nigeria’s debt burden. The National Assembly is expected to pass the final budget by February 2025, after which President Tinubu will sign it into law. Until then, the debate over its potential impact on Nigeria’s economic future continues. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
Discover why Nigeria’s Finance Minister, Wale Edun, supports the 50% telecom tariff hike, the implications for consumers, and expected service improvements. In response to growing economic challenges, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has endorsed the recent 50% increase in telecom tariffs, emphasizing that inflationary pressures must be reflected in the operational costs of telecommunications companies. The announcement, made earlier this week, has sparked widespread reactions across various sectors. While telecom firms argue that the hike should exceed 50%, labor unions and the National Association of Telecommunications Subscribers (NATCOMS) have criticized the move, claiming it disproportionately benefits companies while burdening everyday Nigerians. Government Compromise with Telecom Firms During an interview with Arise TV at the 2025 World Economic Forum in Davos, Switzerland, Edun disclosed that the government reached a middle ground with telecom operators to ensure business sustainability while addressing public concerns. “Inflation has risen significantly, and this reality must be reflected in the operational framework of telcos. Although their prices are regulated, arbitrary tariff hikes are not permitted,” Edun explained. He further noted that the tariff adjustment is only the starting point in balancing consumer affordability and business viability. Mounting Financial Pressures on Telecom Firms Edun elaborated on the financial challenges facing the telecom sector, citing inflation, exchange rate instability, and the heavy capital investment required to meet increasing consumer demand. He warned that these factors, if not addressed, could jeopardize the sector’s sustainability, which plays a critical role in Nigeria’s digital economy. “For years, tariff rates have remained stagnant despite rising operational costs. The 50% adjustment ensures telcos can continue to innovate and provide services, while supporting economic growth,” he added. Service Quality Expected to Improve The government has linked the tariff hike to improved service delivery. Edun emphasized that Nigerians should experience better call termination rates, fewer dropped calls, and enhanced overall service quality following the adjustment. “Our goal is to see telecom operators deliver high-quality services while fostering innovation, creating jobs, and driving GDP growth. This tariff adjustment is part of a broader plan to align the sector with global best practices,” Edun remarked. Reactions from Stakeholders The tariff increase has drawn a mixed response from stakeholders. While telecom companies view the adjustment as a step in the right direction, consumer advocacy groups remain skeptical about its impact on affordability. As the debate continues, it remains to be seen how this policy will shape the future of Nigeria’s telecom industry and its contribution to the nation’s economic landscape. Call to Action What’s your take on the 50% telecom tariff hike? Share your thoughts in the comments below! READ ALSO” Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
Kindly Share:
Economist Bismarck Rewane highlights the importance of power sector reforms in achieving Nigeria’s 2025 economic growth targets. Explore insights on inflation, Naira stability, and GDP forecasts. Prominent economist and CEO of Financial Derivatives Company Limited (FDC), Bismarck Rewane, has projected that power sector reforms will be crucial to achieving Nigeria’s 4.6% economic growth target for 2025. In an in-depth interview, he provided insights into inflation trends, currency valuation, and factors influencing the country’s economic trajectory. Inflation Projection for 2025: Why Lower Rates Are Unlikely Rewane anticipates a 25% inflation rate in 2025, despite the Federal Government’s optimistic projection of 15%. He explains that inflation is historically persistent, with November 2024’s figure reaching 34.6% and a marginal increase expected for December. While inflationary growth may decelerate, significant reductions depend on increased productivity and faster GDP growth, as inflation results from limited supply relative to cash circulation. Rewane highlights that the Central Bank of Nigeria (CBN) is working to control liquidity by reducing excess cash flow. However, he cautions that a substantial drop in inflation would require consistent productivity growth, emphasizing the gap between public expectations and economic realities. Naira Exchange Rate Forecast: Stabilization Predicted Regarding currency valuation, Rewane predicts the Naira will appreciate to ₦1,550 per US dollar by early 2025. His projection is based on improving economic equilibrium, where the gap between the official and parallel market exchange rates has narrowed. Other contributing factors include: He further explains that the Naira remains undervalued, but with cautious optimism, a 10% appreciation is feasible under current monetary policies and stable commodity prices. Banking Sector: Reduced Profitability Expected in 2025 The Nigerian banking sector, which experienced significant profits due to exchange rate gains in 2024, is expected to face lower profitability in 2025. Rewane predicts that the current exchange rate gains will reverse, leading to potential losses for banks. Increased market competition and the ongoing recapitalization efforts will further pressure profit margins. He emphasizes that while the banking sector will remain vital for economic activities, its relative influence will decline due to heightened rivalry and evolving market conditions. GDP Growth Projections and Power Sector Reforms Rewane views the Federal Government’s 4.6% GDP growth target for 2025 as achievable but emphasizes the urgent need for power sector reforms. He asserts that resolving issues within the power sector could potentially elevate GDP growth to 6% or higher. Key recommendations for reform include: Without these changes, Rewane cautions that growth may remain stagnant at around 2.5%, which would merely match Nigeria’s population growth, limiting economic advancement. Key Surprises and Risks in 2025 Rewane differentiates between growth and development, emphasizing the need for both physical and institutional infrastructure. He calls for: He stresses that while physical infrastructure such as roads and bridges remains essential, institutional frameworks are equally critical for sustainable development. Accountability, both financial and moral, must be upheld to drive Nigeria’s progress effectively. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
Kindly Share:
Amid Inflation, Abuja Residents Opt for Local Beverages Over Soft Drinks As the cost of living continues to soar in Nigeria, many residents of Abuja are turning to locally made drinks like zobo, kunu, tiger nut beverages, and fresh fruit juices as affordable and healthier alternatives to carbonated soft drinks. In separate interviews conducted on Saturday, several residents expressed that homemade drinks not only help them save money but also offer health benefits compared to sugary sodas. Why Homemade Drinks Are Gaining Popularity Zobo, a refreshing drink made from dried hibiscus petals and spices, and kunu, derived from ground sorghum and spices, have become household staples. These beverages are praised for their affordability, availability, and reduced sugar content. Adah Jacob, a resident of Abuja, noted the drastic rise in the prices of soft drinks, especially during the festive season. “Since soft drinks are now expensive, I’ll opt for zobo. After all, it’s healthier and saves costs. A bottle of Coke now costs between N450 and N500, while a pack of 12 costs nearly N6,000, compared to N2,500 last year,” she explained. Mary James, another resident, shared her perspective: “Switching to natural drinks made from tiger nuts or Nutri-C has not only helped me save money but has also reduced my soda addiction. These local drinks are both healthier and budget-friendly.” Ms. James, who once sold soft drinks, added that the declining patronage for carbonated beverages has made even personal consumption unaffordable. Homemade Drinks: A Healthier Alternative Abu Gebu, a father of four, emphasized that homemade drinks offer more control over sugar content, making them a healthier choice for families. “Soft drinks are too sugary for children and even some adults. With homemade drinks, you can control the ingredients, and though they require effort, they are healthier and more economical,” he said. Increased Demand for Local Ingredients The shift towards homemade beverages has also boosted the demand for ingredients like hibiscus petals and sorghum. Saminu Mohammed, a trader at Dutse Market, stated that sales of these ingredients have surged. “A mudu of hibiscus petals now costs N1,500, while sorghum goes for N1,200. People from all tribes are embracing these drinks, not just northerners, and it has positively impacted our business,” he said. The economic strain has led many Nigerians to embrace creative and cost-effective solutions, with homemade drinks standing out as a practical and nutritious choice amid inflationary pressures. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
Kindly Share:
Discover how Nigeria’s cost-of-living crisis is pushing vulnerable citizens to the brink. Rising food prices, inflation, and stampedes leave many struggling during the festive season. Cost-of-Living Crisis Takes a Deadly Toll in Nigeria As Nigeria grapples with a worsening cost-of-living crisis, recent events have exposed the devastating impact on citizens. Stampedes in Abuja and Anambra State left several dead and injured as Christmas nears, underscoring the harsh realities faced by vulnerable Nigerians. Tragic Stampedes Claim Lives In Maitama, Abuja, a stampede occurred as over 1,000 people gathered to receive rice and other food items meant for the vulnerable and elderly. Tragically, 10 people lost their lives, including four children, while eight others sustained injuries. Similarly, in Okija, Anambra State, dozens of individuals died in a stampede while attempting to collect 10kg bags of rice distributed by the Obi Jackson Foundation. Shocking videos circulating online showed chaotic scenes of bodies sprawled in a tragic aftermath. These incidents follow a similar tragedy in Ibadan, where 35 children lost their lives during a Christmas funfair stampede. The event was intended to distribute food and cash to 5,000 children, but an overwhelming turnout of 7,500 led to the disaster. Rising Cost of Rice Deepens the Crisis Rice, a staple food during festive seasons in Nigeria, has become increasingly unaffordable for many families. In just one year, the price of a 50kg bag of local parboiled rice has surged by 66%, rising from ₦60,000 in December 2023 to ₦100,000 in December 2024. This sharp increase is particularly harsh in a country where the minimum monthly wage is ₦70,000 (less than $50). With inflation reaching 34.6% in November 2024, Nigerians are facing unprecedented economic pressure. Struggling to Afford Basic Necessities For many, the cost of living has spiraled out of control. Bola Ademosu, a teacher in Lagos, lamented the financial strain: “How do I afford to buy a bag of rice for ₦100,000 when I earn only ₦100,000? What will I have left to feed my children and for our upkeep?” Her concerns are echoed by millions of Nigerians who struggle to balance rising food and fuel prices amidst a worsening naira scarcity. The Cost of Jollof Rice Skyrockets Even the preparation of jollof rice, a beloved delicacy, has become a challenge. The Jollof Index reveals that the average cost of cooking a pot of jollof rice for a family of five has risen by 5.1%, now costing ₦21,300. Conclusion The cost-of-living crisis in Nigeria is not just an economic issue—it is a humanitarian one. As inflation rises and essential food items become unattainable, citizens face increasing desperation. The tragic stampedes during food distribution events highlight the urgency of addressing this crisis, especially as the festive season approaches. With proper interventions, including inflation control, wage adjustments, and targeted relief programs, there is hope for alleviating the struggles faced by millions of Nigerians. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
Kindly Share:
Former Vice President Atiku Abubakar has expressed that he harbors no envy toward President Bola Tinubu, whom he accuses of causing suffering for Nigerians. Atiku, the Peoples Democratic Party (PDP) candidate in the 2023 presidential election, was responding to recent statements from the presidency, which alleged that he was envious of Tinubu. On Sunday, Bayo Onanuga, the president’s special adviser on information and strategy, criticized Abubakar for his consistent disapproval of Tinubu’s economic strategies. Abubakar has frequently condemned Tinubu’s economic measures, describing them as a “collection of policies” lacking clear plans for effective implementation. In a statement released on Monday by Phrank Shaibu, his special assistant on public communication, Abubakar asserted that Tinubu tends to implement policies without adequately considering their potential impact. “On July 8, 2024, Tinubu declared that import duties on essential goods such as food would be suspended for 150 days. Yet, over 120 days have passed without the policy taking effect, while Nigerians continue to suffer from escalating costs, including food inflation, which now exceeds 40 percent, the highest in decades,” the statement noted. The statement continued, “The blatant disregard for government policy by Tinubu’s appointees, coupled with the finance ministry’s failure to issue a gazette even after four months, highlights the ineptitude and lack of seriousness that typifies the Tinubu administration. “Regrettably, instead of prioritizing governance, they focus on attacking opponents—Atiku Abubakar and Peter Obi—while using compromised courts to create discord within the opposition. It’s disgraceful. “Tinubu came to office ill-prepared. He makes decisions first and contemplates the outcomes later. This is evident in the abrupt removal of the petrol subsidy without adequate safety measures. “When he witnessed the resulting impact, he hastily proposed a CNG initiative that neither he nor his ministers have fully embraced, which explains their reluctance to utilize it. The CNG initiative remains stalled due to the absence of necessary gas infrastructure in many states. “It is absurd to suggest that Atiku is envious of Tinubu. Absolutely not—Atiku could never be jealous of Tinubu’s actions that inflict pain on Nigerians. READ ALSO: NAF Airstrikes Free Hostages, Devastate Bandit Camps in Zamfara and Kebbi “Cruelty seems to be the unique trait of Tinubu. No leader who genuinely prioritizes the welfare of Nigerians would covet such an attribute.” Abubakar also highlighted that Nigeria currently has the “worst-performing currency in Africa” and ranks as the fifth-largest economy on the continent, a significant decline from its top position when the All Progressives Congress (APC) took power in 2015.
Kindly Share:
PMS Price Increased to N1025.00 by NNPC: What This Means for NigeriansIn recent news that has stirred up significant reactions across Nigeria, the Nigerian National Petroleum Corporation (NNPC) has announced a substantial increase in the price of Premium Motor Spirit (PMS), commonly known as petrol. As of the latest update, the price has surged to N1025.00 per liter. This sharp increase marks one of the highest price hikes in the country’s recent history, sparking questions and concerns about the future of fuel prices, economic stability, and the daily lives of Nigerians.Why the Increase?The NNPC attributes this price adjustment to several pressing economic factors, both global and domestic: 1. Global Oil Prices: Oil prices have been volatile, largely due to international conflicts, global energy demands, and OPEC’s regulatory influence. The global oil market’s instability translates to fluctuations in the cost of crude, which affects downstream sectors like PMS production and distribution. 2. Foreign Exchange Rates: With Nigeria’s dependence on imports for refined petroleum products, the strength (or weakness) of the Naira against major currencies significantly affects the landing costs of PMS. Recent devaluations of the Naira have made it more expensive for the NNPC to import and refine fuel. READ ALSO 3. Subsidy Removal: Earlier this year, the federal government officially removed the fuel subsidy, aiming to reduce government spending. This has placed the full weight of fuel costs on consumers, making PMS prices subject to direct market influences without government intervention.Economic Implications of the Price HikeThis sudden spike in PMS prices brings far-reaching implications for the Nigerian economy and everyday life: 1. Inflation: Fuel price hikes often lead to higher transportation costs, which can trigger a ripple effect across various sectors. Increased transportation costs drive up the prices of goods and services, leading to inflation. Nigerians can expect a rise in the cost of essential items, from food to housing. 2. Impact on Small Businesses: Many small and medium enterprises (SMEs) depend on fuel for operations, particularly given the country’s unreliable power supply. Higher PMS costs will increase operational expenses, potentially forcing some businesses to reduce workforce or scale back on production. 3. Transport Sector Strain: The transport sector is likely to feel the immediate effects, as drivers pass the increased fuel costs onto passengers. This will make daily commuting more expensive for millions, straining household budgets. 4. Reduced Purchasing Power: With the general rise in the cost of living, many Nigerians will have less disposable income, affecting spending patterns and quality of life. Lower purchasing power can lead to slower economic growth, as consumer spending is a vital component of economic activity.Potential Responses from the Government and CitizensThe federal government may explore options to cushion the effects of this increase. RELATED NEWS There is talk of possible interventions to support public transport systems, though these discussions are still speculative. Various citizen advocacy groups have also voiced their discontent, demanding government action to prevent further strain on the average Nigerian.ConclusionThe NNPC’s price adjustment reflects the complexities of balancing global economic factors with national stability. As Nigerians navigate the implications of the N1025.00 PMS price, it’s crucial for both the government and private sectors to consider strategies to help citizens manage the increased costs. Whether through alternative energy solutions or economic policies that can stabilize the currency, proactive steps are needed to ensure resilience in the face of these rising challenges.
