The federal government has unveiled a proposed total expenditure of N47.9 trillion for the 2025 budget.
The Minister of Budget and Economic Planning, Atiku Bagudu, made this disclosure on Thursday while briefing journalists after the Federal Executive Council (FEC) meeting, presided over by President Bola Tinubu.
The proposed budget forms part of the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2025-2027, in compliance with the Fiscal Responsibility Act of 2007.
Bagudu noted that the framework is set to be presented to the National Assembly by Friday or Monday, as mandated by law.
Key projections in the framework include a Gross Domestic Product (GDP) growth rate of 4.6%, an exchange rate pegged at $75 to the Naira, and an oil production target of 2.06 million barrels per day.
Bagudu said, “The Federal Executive Council approved a memorandum by the Ministry of Budget and Economic Planning, presented by the Director General of the Budget Office, Tanimu Yakubu, on the Medium Term Expenditure Framework and Fiscal Strategy Paper for 2025-2027.”
He noted that the Council will transmit the framework to the National Assembly on Friday, November 15, or Monday, November 18.
The minister outlined the parameters, including “an oil price benchmark of $75 per barrel for 2025, oil production of 2.06 million barrels per day, an exchange rate of N1400 to $1, and a GDP growth of 4.6 per cent.”
“For 2025, the Federal Government’s budget estimate for aggregate expenditure is N47tn, including a borrowing of N13.8tn, which is 3.87 per cent of the estimated GDP.
“This includes projections, with, for the first time, provisions for contributions to the development commissions that have been approved by the National Assembly.”
He added, “The budget size approved for presentation to the National Assembly in the MTEF is N47.9tn, with new borrowings of N9.22tn to finance the budget deficit in 2025. We aim to sustain the commendable market deregulation of petroleum prices and the exchange rate, compel the Nigerian National Petroleum Corporation Limited to significantly lower its oil and gas production costs, and potentially amend relevant sections of the Petroleum Industry Act 2021 to address key risks to the Federation.”
Bagudu further noted that the MTEF included a review of the 2024 budget implementation, highlighting promising progress in revenue collection and expenditure management.
“Despite some lags in prorated targets, the overall trajectory shows that fiscal efforts are on track, with key non-oil streams performing better than anticipated,” said Bagudu.
Further details about the budget proposal and its implications for the Nigerian economy are expected to be released soon.
