2025 Budget Breakdown: Tinubu Allocates ₦1trn to Solid Minerals, ₦1.5trn to BOA
President Bola Tinubu has proposed a major increase in Nigeria’s 2025 budget, pushing it from ₦49.7 trillion to ₦54.3 trillion. In a letter to the National Assembly, he outlined key funding areas, including a massive ₦1 trillion allocation for the solid minerals sector and ₦1.5 trillion for the Bank of Agriculture (BOA).
₦1 Trillion for Solid Minerals: A Push for Economic Diversification
For years, Nigeria has talked about moving away from oil dependency, but little financial support has gone into the solid minerals sector. Now, Tinubu is making a bold move by setting aside ₦1 trillion to boost mining and exploration.
The Minister of Solid Minerals, Dele Alake, has repeatedly raised concerns over underfunding. Earlier this year, he revealed that Nigeria’s investment in mining exploration was just $2.5 million in 2023—far lower than Ivory Coast’s $147 million and Congo’s $133 million.
During a House of Representatives hearing, Alake disclosed that his ministry had initially proposed a ₦70 billion budget for exploration, but only ₦9 billion was allocated. Lawmakers even summoned the Ministers of Finance and Budget Planning to explain the low funding.
With this new ₦1 trillion allocation, industry experts are optimistic. Felicia Dairo, a project manager at the Centre for Journalism Innovation and Development, welcomed the move but emphasized the need for strict accountability measures to prevent mismanagement.
₦1.5 Trillion for BOA: Strengthening Agriculture and Food Security
In a bid to support smallholder farmers and boost agricultural productivity, Tinubu has proposed ₦1.5 trillion to recapitalize the Bank of Agriculture (BOA). The goal is to enhance food security, increase exports, and empower agribusinesses.
This funding boost comes at a time when food prices are soaring, with inflation hovering around 40%. The move is expected to help farmers access loans, modernize farming techniques, and improve food production nationwide.
Other Key Allocations: Infrastructure and Military Spending
Beyond mining and agriculture, the president has also earmarked ₦1.5 trillion for the Renewed Hope Infrastructure Development Fund (RHIDF). This fund will cover:
- ₦380 billion for irrigation projects under River Basin Development Authorities
- ₦700 billion for transportation, including ₦300 billion for road construction and rehabilitation, and ₦400 billion for urban light rail systems
- ₦50 billion for border communities’ infrastructure
- ₦250 billion for military barracks housing
- ₦120 billion for military aviation
While these budgetary increases signal bold ambitions, it is unclear whether agencies will appear before lawmakers to defend their allocations, as budget defense sessions are nearly over.
However, Senate President Godswill Akpabio has assured that the National Assembly will pass the 2025 budget by the end of February, despite the adjustments.
