Nigeria’s Federal Executive Council (FEC) has unveiled a proposed N47.9 trillion budget for the 2025 fiscal year, focusing on economic resilience and growth. Key highlights include pegging crude oil at $75 per barrel, an exchange rate of N1,400 to $1, and oil production set at 2.06 million barrels per day. The proposal will be presented to the National Assembly on Monday.
Minister of Budget and Economic Planning, Atiku Bagudu, emphasized that the 2025 budget seeks to address inflation, create employment, and bolster social investment programs. “Our fiscal strategy is conservative to ensure economic stability while projecting growth rates of 3.19% for 2024 and aiming for 6.4% by 2025,” Bagudu stated.
The budget includes new borrowings of N9.2 trillion to cover the deficit, reflecting an increase from the N28.78 trillion 2024 budget. The FEC also reviewed the 2024 budget performance, noting improved revenue collection and stronger non-oil revenue streams, despite missing some prorated targets.
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The council approved the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper, alongside pending Economic Stabilisation and Tax Reform Bills, which aim to drive robust growth in 2025. Bagudu underscored the importance of market deregulation, reduced production costs by the Nigerian National Petroleum Corporation Limited (NNPCL), and potential amendments to the Petroleum Industry Act to mitigate fiscal risks.
This ambitious proposal reflects Nigeria’s commitment to a balanced approach between fiscal responsibility and economic development, promising critical investments in high-impact sectors and the welfare of its citizens.
