Budget 2025: Uwaleke hails additional N4.5 trn for BOA, BOI recapitalisation
"The additional funds would be allocated to key sectors ..."
Prof. Uche Uwaleke, a Financial Expert, has commended the Federal Government for the additional N4.5 trillion in the 2025 budget proposal to strengthen development finance institutions.
Uwaleke, a Professor of Capital Market and the President of Capital Market Academics of Nigeria gave the commendation in an interview with the News Agency of Nigeria (NAN) on Monday in Abuja.
BRANDECONOMY reports that President Bola Tinubu presented the 2025 budget proposal titled “Budget of Restoration: Securing Peace, Rebuilding Prosperity” to the joint session of the National Assembly on Dec. 18, 2024.
While presenting the N49.7 trillion budget, Tinubu said it aligned with his administration’s Renewed Hope Agenda and underscores its commitment to stabilising the economy, fostering peace, and laying a foundation for sustainable prosperity.
He said that the budget proposal reinforced his administration’s roadmap to secure peace, prosperity, and hope for a greater future for the nation.
“This budget strikes at the very core of our Renewed Hope Agenda and demonstrates our commitment to stabilising the economy, improving lives, and repositioning our country for greater performance,” Tinubu said.
However, on Feb. 5, the president proposed an additional N4.5 trillion to the budget, bringing the total proposed budget to N54.2 trillion.
According to him, the additional funds would be allocated to key sectors like agriculture, to enhance the Bank Of Agriculture (BOA) and to support diversification initiatives.
He said that it would also be used to boost the development and exploration of solid mineral resources, and to fund critical infrastructure projects across the country.
Uwaleke specifically commended the idea that the additional funds would be used to recapitalise and restructure the Bank of Industry (BOI) and the BOA.
He advised that the plan should also be extended to strengthening the country’s export sector.
“I consider as economically wise, the decision to use such funds to recapitalise and restructure the BOA and the BOI, as well as diversify the solid minerals sector.
He advised that any plan to strengthen the development finance institutions should also include the country’s export credit agency, the NEXIM.
According to him, the reasons advanced for the increase in the budget size are cogent.
“The first thing to note is that the revenue generating agencies, especially the Federal Inland Revenue Service and the Nigerian Customs Service, surpassed their targets for 2024.
“Not recognising their full capacity in the 2025 estimates would introduce a slack in the 2025 budget,” he said.
He said that a tempting option to the use of the additional N4.5 trillion revenues projected would be for reducing the fiscal deficit.
Uwaleke said that the huge benefits that will arise from its proper utilisation will by far outweigh costs associated with deficit financing.
