The Federal Executive Council (FEC) has approved a projected expenditure of N47.96 trillion for the 2025 fiscal year, with a strong focus on balancing revenue, expenditure, and borrowing to achieve economic sustainability. Coordinating Minister of the Economy, Olawale Edun, highlighted this during a briefing after the FEC meeting presided over by President Bola Ahmed Tinubu.
The proposed budget reflects a revenue target of N24.82 trillion, leaving a deficit of N13.14 trillion, equivalent to 3.89% of the Gross Domestic Product (GDP). Edun explained that the deficit will be financed through borrowing, which aligns with international best practices for achieving fiscal balance.
The budget represents a 36.8% increase from 2024 and underscores the administration's commitment to reforms aimed at driving economic growth, fostering private-sector investment, and addressing critical national challenges.
Edun highlighted key achievements under President Tinubu's administration, including the removal of the petroleum subsidy, market-driven foreign exchange policies, and adjustments in electricity tariffs. These reforms, he said, have bolstered investor confidence, with major announcements of multi-billion-dollar investments from Shell and Total.
The minister also celebrated the resumption of domestic petroleum refining for the first time in 25 years, describing it as a milestone that supports industries like pharmaceuticals and textiles while reducing dependency on fuel imports.
Minister of Budget and Economic Planning, Atiku Bagudu, provided further details on the budget framework. He stated that the 2025 fiscal plan is based on an oil price benchmark of $75 per barrel, a daily oil production target of 2.06 million barrels, and an exchange rate of N1,400 to the dollar.
The budget prioritizes investments in infrastructure, education, health, and agriculture while promoting economic diversification and job creation. Notably, it includes initiatives to expand industrial activity, enhance food security, and advance affordable housing schemes to address the housing deficit.
Bagudu emphasized that the budget builds on the administration's 2024 achievements in reducing deficits and enhancing infrastructure, security, and macroeconomic stability.
Following the FEC's approval, President Tinubu is expected to present the 2025 Appropriation Bill to the National Assembly within 48 hours. However, the presentation, initially scheduled for Tuesday, may be postponed to Wednesday, pending ongoing discussions.
This budget marks a significant step in the administration’s efforts to ensure fiscal prudence while fostering inclusive growth and sustainable economic development.
