FG ALLOCATES N27BN FOR OBASANJO, GOWON, BUHARI, OTHERS IN 2025

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The Federal Government has set aside N27 billion in the 2025 fiscal year to cover entitlements for former presidents, vice-presidents, heads of state, chiefs of staff, retired heads of service, and professors.

This allocation will benefit former leaders such as Olusegun Obasanjo, Goodluck Jonathan, Muhammadu Buhari, Atiku Abubakar, Namadi Sambo, and Prof. Yemi Osinbajo. Additionally, ex-military leaders like Gen. Yakubu Gowon (retd.), Gen. Abdulsalami Abubakar (retd.), Ibrahim Babangida, and retired Chief of General Staff, Commodore Ebitu Ukiwe, are included.

President Bola Tinubu unveiled the 2025 budget, titled “Budget of Restoration: Securing Peace, Rebuilding Prosperity,” before a joint session of the National Assembly on Wednesday.

The N49.70 trillion budget prioritizes defence, infrastructure, and human capital development, with a projected N13.39 trillion deficit to be financed through borrowing.

During his address to lawmakers, Tinubu reiterated his administration’s commitment to bolstering national security and upgrading critical infrastructure.

Budget documents reveal that the Federal Government allocated N1.4 trillion for pensions, gratuities, and retirees’ benefits. Out of this, N2.3 billion is set aside for former presidents, heads of state, and vice-presidents, while retired heads of service and permanent secretaries will receive N10.5 billion.

Retired professors are allocated N13.5 billion, and retired heads of government agencies and parastatals will get N1 billion, making a total of N27 billion.

The budget also shows that N46 billion is allocated for civilian pensions under the Office of the Head of Civil Service, while N383.9 billion is earmarked for military pensions and gratuities.

An additional N66.8 billion is designated for expected retirees, with N434 million set for administrative charges, N596 million for pension running costs, and N870 million for medical retirees.

Gratuity arrears from January 2019 to December 2021 are allocated N2.7 billion, while pension arrears are set at N1.86 billion, and N2.2 billion is designated for death benefits during the same period.

Verification exercises are budgeted at N814 million, while N43 billion is earmarked for security debarment allowances, including arrears from 2017, 2018, and 2019.

Adjustments for minimum wage-related pension arrears amount to N330 million.

A sum of N24.8 billion is allocated for pensions and arrears under the Department of State Security.

Additionally, N42 billion is assigned to the Pension Transitional Arrangement Directorate, N10.4 billion for police pensions and gratuities, N10.3 billion for university pensions (including arrears), and N43.4 billion for parastatal and railway pensions.

The National Pension Commission is expected to receive N804.7 billion, while death benefits include N35 billion for deceased military personnel, N4.2 billion for civil servants, and N3.5 billion for police officers.

N500bn for Student Loans and School Feeding

The Federal Government has also allocated N500 billion to fund a student loan scheme and various social investment initiatives, such as school feeding programs, for the coming year.

Of this, N50 billion is dedicated to the student loan scheme. Since its creation on April 3, 2024, the Nigerian Education Loan Fund has disbursed N104 billion to 613,734 students across tertiary institutions.

According to the fund’s data, N33.9 billion was distributed to 320,837 students for institutional fees, while N70.2 billion supported 292,897 students with upkeep expenses.

Furthermore, the 2025 budget includes N250 billion for the National Poverty Reduction with Growth Strategy programs, aimed at enhancing the National Social Investment Programme.

These funds will be distributed through Service-Wide Votes and Capital Supplementation, part of the capital projects outlined for the year.

The government also allocated N100 billion each to the National Home-Grown School Feeding Programme and the Consumer Credit Fund initiatives.