2025 Budget: FG Allocates N2 Billion for Land Clearing, N200 Million for Preparation
- Details of the 2025 appropriation bill presented by President Tinubu have shown that land clearing in some states will gulp a staggering N2 billion
- According to the budget, the preparation of lands will cost N200 million and N100 million will be allocated to digging trenches
- The budget also outlines plans to invest N250 million in promoting biodiversity and developing plantations for banana, teak, and cashew trees
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.
The Federal Government has earmarked N2 billion for the National Agricultural Land Development Authority (NALDA) to clear land for farming activities in select states.
Additionally, N200 million has been allocated for land preparation on NALDA farms in states yet to be specified.
It would be recalled that President Bola Tinubu submitted a N47.9 trillion 2025 Appropriation Bill to the National Assembly on Thursday, November 14, 2024.
Source: UGC
More budgetary allocation for NALDA
As regards the amount appropriated for NALDA activities, N100 million is set aside for digging trenches on farms.
Another proposal includes N80 million for purchasing seeds, fertilizers, agrochemicals, and other farming inputs.
Similarly, N52.125 million has been allocated for the procurement of agricultural tools such as knapsacks, wheelbarrows, raincoats, rain boots, and safety boots.
According to The SUN, the sum of N86.4 million is also allocated for the purchase of motorcycles and cargo tricycles to aid farm supervision in certain states.
In addition, N250 million has been allocated for the design and construction of a warehouse to store equipment and materials.
Separately, N22,496,266 has been set aside for the construction of farm hostels or housing units for farmers.
The budget also outlines plans to invest N250 million in promoting biodiversity and developing plantations for banana, teak, and cashew trees to boost yields and support food and fibre security.
In a similar development, the Joint National Assembly Committee on Solid Minerals has turned down the proposed N9 billion capital budget allocated to the mining sector in the 2025 budget.
The committee argued that the allocation is significantly insufficient to establish solid minerals as a key pillar in the nation's economic diversification efforts.
Another point of contention in the budget is the federal government's inflation rate target of 15%, as stated in the Medium Term Expenditure Framework.
Commenting on the issue, Bismarck Rewane, a renowned economist and managing director of Financial Derivatives Company (FDC), described the target as overly optimistic and improbable to achieve.
NASS rejects 2025 solid minerals budget
In a similar development, the Joint National Assembly Committee on Solid Minerals has rejected the proposed N9 billion capital budget allocated to the mining sector in the 2025 budget.
This follows the National Assembly's reduction of the ministry's proposed N531 billion 2025 capital expenditure to N9 billion.
The committee argued that the allocation is significantly insufficient to establish solid minerals as a key pillar in the nation's economic diversification efforts.
FG targets new borrowing in 2025
Meanwhile, Legit.ng reported that the federal government plans to resort to borrowing in 2025 to fund the budget, which has already received approval from the Federal Executive Council (FEC).
The 2025 budget is projected at N48 trillion, with a deficit of N13 trillion to be covered through loans.
According to the government, the budget is structured to enhance fiscal sustainability by balancing public expenditure while fostering private-sector participation.
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Source: Legit.ng
