Abuja, Nigeria – November 15, 2024 – The Federal Executive Council (FEC) has approved a proposed budget of N47.9 trillion for the 2025 fiscal year, marking a 35% increase over the N35.5 trillion budget approved for 2024. This expansionary budget aims to support the federal government’s efforts to lift millions of Nigerians out of poverty through targeted economic interventions and infrastructure development.
Atiku Bagudu, Nigeria’s Minister of Budget and Economic Planning, made the announcement during a press briefing following Thursday’s FEC meeting, which was presided over by President Bola Tinubu. Bagudu explained that the proposed budget aligns with the Medium-Term Expenditure Framework (MTEF) for 2025-2027 and complies with the Fiscal Responsibility Act (FRA) of 2007, ensuring fiscal discipline while pursuing economic growth.
Key Projections for 2025 Budget
The 2025 budget includes the following major economic projections:
- Gross Domestic Product (GDP) growth rate: 4.6%
- Crude oil price: $75 per barrel
- Exchange rate: N1400 to $1
- Oil production: 2.06 million barrels per day
The budget also includes non-debt recurrent expenditure of N9.92 trillion, capital expenditure of N7.72 trillion (excluding transfers), and a debt service allocation of N8.25 trillion. Additionally, statutory transfers are pegged at N1.37 trillion, with a sinking fund of N243.66 billion.
Expansionary Budget to Support Economic Growth
The increase in the 2025 budget is seen as part of Nigeria’s strategy to boost its economic recovery and development. With a continued focus on poverty alleviation, the government aims to fund critical infrastructure projects, social services, and investments in sectors that will drive economic diversification.
The 2024 budget had originally been set at N27.5 trillion ($36.7 billion) before being revised upwards to N35.5 trillion. The government’s efforts to achieve a projected N18.32 trillion in revenue for 2024 were centered around oil revenue, government-owned enterprises, and other income sources.
Borrowing Plans to Support Economic Reforms
In addition to the 2025 budget approval, Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, revealed that FEC had also approved the country’s plans for external borrowing. The government intends to raise $2.2 billion in foreign financing, which includes $1.7 billion in Eurobond issuance and $500 million in SUKUK financing. These funds are expected to bolster Nigeria’s fiscal position and support economic reforms aimed at driving growth and stability.
Edun further noted that the borrowing plans would require approval from the National Assembly before Nigeria can access the international capital markets for these funding arrangements. The government’s approach seeks to diversify its funding sources while minimizing the impact of borrowing on domestic economic conditions.
Looking Ahead: Fiscal and Economic Priorities
As Nigeria prepares for the 2025 fiscal year, the government remains focused on structural reforms and infrastructure development to stimulate job creation, enhance public services, and improve the living standards of Nigerians. The approved budget is seen as a critical tool to implement the administration’s economic plans, addressing challenges like poverty, unemployment, and infrastructure deficits.
The proposed N47.9 trillion budget will be submitted to the National Assembly in the coming days for further scrutiny and approval, as required under the Fiscal Responsibility Act. If passed, it will set the stage for the Nigerian government’s fiscal policies in the next year, supporting the country’s ambitious development goals.