The Federal Government of Nigeria approved a proposed budget of N47.9 trillion for the 2025 fiscal year, following discussions in the Federal Executive Council (FEC) meeting presided over by President Bola Tinubu on November 14, 2024. This budget framework was part of the newly approved Medium-Term Expenditure Framework (MTEF) for 2025-2027, prepared by the Ministry of Budget and Economic Planning.
Key projections in the budget include an oil benchmark set at $75 per barrel, with a daily oil production target of 2.06 million barrels. The government anticipates significant economic challenges with the exchange rate pegged at N1,400 to the US dollar. Despite these challenges, the 2025 budget aims for a Gross Domestic Product (GDP) growth rate of 4.6 per cent, emphasizing sustainable economic reforms in both exchange rate policy and petroleum market deregulation.
Minister of Budget and Economic Planning Atiku Bagudu explained that the budget would include N9.22 trillion in new borrowing to address the fiscal deficit, demonstrating the government’s commitment to achieving revenue growth and economic stability through various fiscal strategies. Additionally, new provisions for development commissions were approved to support regional development initiatives.
This budget is expected to be formally presented to the National Assembly in the coming days, highlighting the Tinubu administration’s priority on economic recovery through proactive fiscal and market reforms.