Federal Government Allocates N8.52 Trillion for Personnel and Pension Costs in 2025 Budget, Prioritizes Security, Infrastructure, and Economic Growth"

 

According to an analysis of the 2025 Appropriation Bill, the Federal Government plans to allocate N8.52 trillion, including government enterprises, for personnel and pension expenses for federal workers in 2025. This marks a significant increase of N3.17 trillion, or 59.16%, compared to the N5.35 trillion allocated for the same purpose in 2024.

The report further indicates that government spending on salaries alone will rise to N7.54 trillion, reflecting a N2.75 trillion increase from the N4.79 trillion paid in 2024.

In total, the combined expenses for personnel and pension costs (N8.52 trillion) and debt servicing (N16.33 trillion) amount to N24.85 trillion, which accounts for 53.98% of the total N46.02 trillion 2025 budget.

Notably, the government is set to spend more on debt servicing than on federal workers’ salaries and pensions. President Bola Tinubu introduced the "Budget of Restoration: Securing Peace, Rebuilding Prosperity" to the National Assembly on Wednesday, outlining an ambitious N49.70 trillion expenditure plan. The budget prioritizes defense, infrastructure, and human capital development, with a projected deficit of N13.39 trillion to be financed through borrowing.

During his address to the National Assembly, President Tinubu emphasized his administration's dedication to enhancing security and modernizing the nation’s infrastructure.

The Appropriation Bill outlines N7.54 trillion for salaries, N984.91 billion for pensions and gratuities, and N16.33 trillion for debt servicing. Additionally, N2.58 trillion is allocated for service-wide votes, N3.18 trillion for capital supplementation, and N4.44 trillion for statutory transfers.

In terms of executive expenditures, the State House has allocated N15.09 billion for the purchase of tires for bulletproof vehicles, SUVs, operational vehicles, and plain cars, as well as for constructing an office complex for Special Advisers and Senior Special Assistants. The proposed budget includes N5.49 billion for the annual maintenance of the Presidential Villa and N164 million for vehicle tire purchases. Specific allocations include N1.1 billion for replacing SUVs and N3.66 billion for acquiring State House operational vehicles.

Furthermore, N127.86 million is designated for procuring SUVs for the President and Vice President, covered by the Office of the President. The Office of the Chief of Staff will receive N285 million for vehicle purchases, while the Chief Security Officer to the President is allocated N179.63 million for security and operational vehicle purchases.

The 2025 appropriation also includes N2.12 billion for honorarium and sitting allowances and N1.83 billion for constructing an office complex for Special Advisers and Senior Special Assistants.

Allocations for professional regulatory bodies such as the Medical and Dental Council of Nigeria (MDCN), Nursing and Midwifery Council of Nigeria (NMCN), and Pharmacy Council of Nigeria (PCN) have been included under the Ministry of Health and Social Welfare. The MDCN receives the largest share, with N18.11 billion, while the PCN and NMCN are allocated N1.92 billion and N1.01 billion, respectively. This funding follows a prior announcement that budgetary allocations for professional bodies would cease by 2026, aligning with directives from the Presidential Committee on Salaries.

Meanwhile, the Ministry of Agriculture and Food Security has earmarked N54.38 billion of its N636 billion budget allocation for Federal Universities of Agriculture, accounting for 8.4% of the ministry’s total budget. This includes N13.77 billion for the Federal University of Agriculture in Abeokuta, N14.17 billion for the Makurdi campus, and other universities spread across various states.

Stakeholders, including Dr. Moses Ogah, a lecturer at the Joseph Sarwuan Tarka University in Makurdi, have welcomed the proposed allocation. He stressed the need for effective implementation to tackle food security challenges, reduce food prices, and promote national development. Ogah noted that the university system, designed to address food production and reduce costs, has underperformed in this regard but remains a valuable resource for improving food security.

Dr. Ogah also highlighted the critical infrastructure required, such as hatcheries and livestock facilities, to support the country’s agricultural goals. Despite the challenges faced, he expressed optimism, citing the skilled manpower in these universities, and called for increased focus on food production to benefit the country.

The budget also includes assumptions of a decline in inflation from 34.6% to 15% and a strengthening of the naira exchange rate from N1,700 per dollar to N1,500 per dollar, aiming to drive economic growth and stability.

With strategic focus on defense, infrastructure, and human capital development, the 2025 budget, though facing a projected N13.39 trillion deficit, is seen by many as a step toward improving Nigeria’s economic and developmental prospects.