The Federal Government of Nigeria has allocated N12,420,122,743 in the proposed 2025 budget for the insurance of sensitive assets, marking a significant step toward protecting critical infrastructure and resources amid escalating risks.
This allocation, highlighted in the budget submitted to the National Assembly in December, is designed to provide financial coverage for key government properties, facilities, and systems that are deemed vital to the nation’s operational stability.
These assets include essential infrastructure, IT systems, and other strategically significant resources, many of which face potential threats ranging from natural disasters to vandalism and cyber-attacks.
President Bola Tinubu on December 18, 2024 presented the “Budget of Restoration” during a joint session of the National Assembly in Abuja.
The budget allocates significant funding to other critical sectors, including infrastructure (N4.06 trillion), education (N3.52 trillion), and health (N2.48 trillion).
Sensitivity of the ‘sensitive assets’
One of the most sensitive and critical assets identified for urgent intervention, analysts suggest, is the national grid.
Nigeria’s power sector faced severe challenges in 2024, including a staggering 12 national grid collapses and the destruction of 128 transmission towers, a situation that exposes the fragile state of the nation’s energy infrastructure.
- The Minister of Power, Chief Adebayo Adelabu, clarified that the widespread blackouts experienced during the year were not solely the result of grid collapses but were largely due to sabotage and vandalism of key power infrastructure under his ministry’s jurisdiction.
- He emphasized the deliberate and malicious actions that have undermined efforts to ensure stable electricity supply across the country, further complicating the sector’s challenges.
Speaking before the Senate Committee on Power at the National Assembly in Abuja in November, Chief Adelabu outlined the ministry’s response strategy to address the crisis.
- This includes intensifying security measures to protect transmission towers and other critical assets, engaging with local communities to discourage vandalism, and advancing reforms aimed at strengthening the resilience of the power grid.
- The Minister also appealed for legislative support to fast-track the enactment of stricter penalties for vandalism and to allocate additional funding for infrastructure repairs and modernization. He reiterated the government’s commitment to improving power reliability and acknowledged the significant economic and social disruptions caused by persistent outages.
Adjustment to accommodate new minimum wage
The federal government has earmarked a substantial N845,284,513,819 in the 2025 budget to address the financial implications of the recently approved minimum wage increase to N70,000.
- This significant allocation emphasises the administration’s commitment to improving the welfare of civil servants and alleviating the economic pressures faced by the Nigerian workforce amid rising costs of living.
- This provision is included as part of the Service-Wide Vote within the 2025 budget, which President Bola Ahmed Tinubu presented to the National Assembly on Wednesday.
- The allocation aims to support the smooth implementation of the new wage structure across all sectors of the public service. It also reflects the government’s acknowledgment of the critical role civil servants play in driving national development and economic stability.
Beyond the minimum wage adjustment, the 2025 budget emphasizes several other priority areas requiring substantial funding. These include investments in infrastructure development, healthcare, education, and initiatives aimed at fostering economic growth and job creation.
