The Federal Executive Council (FEC) of Nigeria has officially approved a budget proposal of N47.96 trillion for the fiscal year 2025. This decision was made during a council meeting held on December 16, 2024, and presided over by President Bola Tinubu at the Presidential Villa in Abuja. The Minister of Budget and Economic Planning, Atiku Bagudu, announced the approval while providing details about the budget framework.
Key Features of the 2025 Budget Proposal
The proposed budget is built upon several critical economic assumptions:
- Oil Price Benchmark: The budget is based on an oil price benchmark of $75 per barrel.
- Oil Production Target: It aims for an oil production level of 2.06 million barrels per day.
- Exchange Rate: The proposal assumes an exchange rate of N1,400 to the U.S. dollar.
Bagudu explained that these parameters are integral to the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), which have been designed to foster macroeconomic stability and support national development goals.
Financial Overview
The total projected revenue for 2025 is estimated at N34.82 trillion, leading to a significant expenditure plan of N47.96 trillion. This represents a 36.8% increase from the previous year’s budget estimate. Consequently, the anticipated deficit for 2025 stands at N13.13 trillion, which equates to approximately 3.89% of Nigeria’s Gross Domestic Product (GDP). This deficit reflects a reduction from the inherited figure of 6.1% from the 2023 budget.
Objectives and Strategic Focus
The 2025 budget proposal aligns with President Tinubu’s “Renewed Hope Agenda” and aims to address persistent economic challenges while building on achievements from the previous year. The government’s focus includes:
- Infrastructure Development: Enhancing critical infrastructure to boost productivity.
- Human Capital Development: Investing in education and health sectors to improve quality of life.
- Agricultural Support: Strengthening the National Agricultural Development Fund to ensure food security.
- Economic Diversification: Promoting initiatives in gas and compressed natural gas (CNG) to reduce reliance on petrol.
- Affordable Housing: Implementing housing schemes to tackle the housing deficit.
Bagudu emphasised that these initiatives are designed to expand economic activity, create job opportunities, and foster inclusive growth across various sectors.
Next Steps
Following this approval, President Tinubu is set to present the budget proposal to a joint session of the National Assembly on December 18, 2024. This presentation was initially scheduled for December 17 but was postponed to allow for final adjustments based on feedback from FEC members.
Additionally, during this meeting, the FEC also approved other significant measures, including free train services nationwide during the holiday season to alleviate transportation costs for citizens.
By Joseph Johnston,
Youth Editor,
Egogonews Hub
