The Federal Government has finalized the proposed 2025 budget, setting the stage for President Bola Tinubu to present the N47.96 trillion fiscal plan to a joint session of the National Assembly on Wednesday, December 18, 2024.
Initially slated for Tuesday, the presentation was postponed to accommodate final adjustments by the executive. The confirmation came from a top official of the National Assembly and Minister of State for Agriculture, Sabi Abdullahi, who assured journalists that the delay would not disrupt the January-December budget implementation cycle.
The budget outlines a projected revenue of N34.82 trillion, with a deficit of N13.13 trillion, representing 3.89% of GDP. Borrowing is set at N9.22 trillion, with key economic assumptions including an oil price benchmark of $75 per barrel, daily production of 2.06 million barrels, an exchange rate of ₦1,400 to $1, and GDP growth of 4.6%.
The Medium-Term Expenditure Framework (MTEF) 2025–2027, which outlines the fiscal strategies and macroeconomic assumptions for the budget, was endorsed by the Senate on November 22.
Minister of Budget and Economic Planning, Abubakar Bagudu, revealed that the total expenditure represents a 36.8% increase from the 2024 budget. He emphasized that the framework incorporates oil production boosts from new findings in regions like Nasarawa and Kolmani, with the government optimistic about exceeding its 2.06 million barrels-per-day target.
Speaking on the strengthened relationship between the executive and the legislature, Bagudu noted that President Tinubu’s proactive engagement has fostered transparency and expedited approval processes.
“Continuous dialogue and confidence-building measures have improved cooperation between the arms of government, ensuring smoother implementation of national fiscal policies,” Bagudu stated.
The President is expected to urge the National Assembly to exercise diligent oversight, ensuring the budget aligns with national priorities while sustaining the January-December cycle.
Bagudu also provided an update on the 2024 budget’s performance, noting that revenue inflows as of September 30, 2024, stood at ₦14.55 trillion, or 75% of the prorated target, driven by robust non-oil revenues and the deregulation of the petroleum sector. Expenditure reached ₦21 trillion, with 100% performance on debt service, personnel, and pensions. Capital expenditure utilization was recorded at 51%.
The revised fiscal strategy aims to bolster economic growth, enhance revenue streams, and maintain investor confidence. Tinubu’s administration has reiterated its commitment to prudent debt management and ensuring no defaults on national obligations.
As the nation anticipates the formal unveiling of the 2025 Appropriation Bill, all eyes are on Wednesday’s session, where Tinubu will lay out his vision for Nigeria’s economic trajectory in the coming year.
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