Abuja, Nigeria — December 15, 2024
The Federal Executive Council (FEC) has approved the 2025 appropriation bill totaling N47.9 trillion, paving the way for its formal presentation to the National Assembly on Wednesday, December 18.
The Minister of Budget and Economic Planning, Atiku Bagudu, disclosed this during a media briefing at the State House following Monday’s Council meeting chaired by President Bola Ahmed Tinubu. Bagudu confirmed that all outstanding issues in the budget had been resolved, ensuring it is ready for the President’s presentation.
Key Budget Highlights
- Revenue Projection: N34.820 trillion
- Expenditure: N47.960 trillion
- Deficit: 13.13%
Bagudu noted that the 2025 budget reflects an ambitious yet realistic approach, building on revenue performance under the 2024 budget, which had achieved N14.55 trillion, representing 75% performance as of September 2024. He expressed optimism for an even better performance by the year’s end.
Medium Term Expenditure Framework (MTEF) Assumptions
The 2025 budget is aligned with the 2025-2027 Medium Term Expenditure Framework (MTEF) and adheres to the Fiscal Responsibility Act of 2007. Key economic projections include:
- GDP Growth Rate: 4.6%
- Crude Oil Price: $75 per barrel
- Exchange Rate: N1,400 to $1
- Oil Production: 2.06 million barrels per day
Bagudu emphasized that the oil production target reflects improved domestic security and stability in the Niger Delta region. Additionally, the capital expenditure component of the budget stands at 33%, signaling the administration’s commitment to infrastructure development.
Legislative Approval and Finalization
The approval of the budget follows the passage of the 2025-2027 Medium Term Economic Framework (MTEF/FSP) by the National Assembly in November. Bagudu reiterated that the FEC’s green light underscores the administration’s preparedness to meet fiscal targets and prioritize economic growth.
The presentation of the 2025 appropriation bill is expected to provide clarity on the government’s financial priorities and strategies for addressing Nigeria’s pressing economic challenges, including revenue mobilization and deficit reduction.
This comprehensive financial framework reflects President Tinubu’s vision for a resilient and robust economic trajectory in the coming year.