We Need Critical Reflection On Nigeria’s Fiscal Realities – Abbas

Speaker of Nigeria’s House of Representatives, Hon. Abbas Tajudeen, has stressed the need for careful consideration of the country’s fiscal realities, especially regarding the budget size in relation to the population.

Abbas observed that when compared to other African countries, Nigeria operates a modest budget.

He stated this during presentation of 2025 proposed budget by President Bola Tinubu at a joint session of the National Assembly on Wednesday.

The speaker pointed out that despite being Africa’s most populous nation with over 220 million people, Nigeria’s 2024 national budget of $36.7 billion is modest compared to other African countries like South Africa ($160 billion for 60 million citizens), Egypt ($110 billion for 110 million people), Algeria ($60 billion for 45 million people), and Morocco ($50 billion for 37 million residents).

Prime Business Africa reports that President Tinubu presented a proposed budget of N47.9 trillion for the 2025 fiscal year. The president said the Federal Government targets N34.82 trillion as revenue with about N13 trillion as deficit to be financed through borrowing.

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The speaker in his vote of thanks after Tinubu’s presentation said the projections in the budget are “ambitious and commendable.” He commended the president for bold reforms embarked on by his administration in the last 18 months such as foreign exchange reforms, and fuel subsidy removal among other policies.

He noted that even though these reforms required immediate sacrifices, they have laid a solid foundation for sustainable growth and development in the country.

The number one at the Green Chamber emphasised that addressing the fiscal challenges requires urgent and comprehensive tax reforms, to broaden the tax base, streamline  administration, and reduce reliance on borrowing to finance the budget.

Abbas assured President Tinubu that the National Assembly will ensure careful consideration and timely passage of the budget.