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ABUJA—THE Federal Executive Council (FEC) yesterday approved a budget proposal of N47.9 trillion for the 2025 fiscal year and borrowing of N13.8 trillion.
The Minister of Budget and Economic Planning, Atiku Bagudu, disclosed this while briefing State House correspondents, at the end of the Council meeting, presided over by President Bola Tinubu at the Presidential Villa, Abuja.
The approval is part of the Medium Term Expenditure Framework, MTEF, and Fiscal Strategy Paper, for 2025-2027, by the Fiscal Responsibility Act of 2007.
The framework is expected to be submitted to the National Assembly as required by law, either on Friday or Monday.
Bagudu outlined several key parameters that will guide the 2025 budget based on economic projections and government priorities. These include a projected Gross Domestic Product (GDP) growth rate of 4.6% for 2025, an oil price benchmark of $75 per barrel and an exchange rate of N1.400 to $1.
Additionally, the government anticipates oil production at 2.06 million barrels per day.
In terms of fiscal strategy, the budget assumes that the government will borrow approximately N13.8 trillion — about 3.87% of the GDP — to fund key infrastructure projects and economic initiatives.
Bagudu emphasized that this borrowing is part of a strategic plan to balance government spending with sustainable debt management.
The Minister further noted that “the Nigerian economy is showing signs of resilience, with a 3.19% growth rate recorded in the second quarter of 2024.
This growth is expected to continue through 2025, driven by efforts to tackle inflation and stabilize key economic sectors.”
Bagudu lists the aims of fiscal policies
He stressed that the Federal Government’s fiscal policies are aimed at strengthening economic resilience, continuing to address inflationary pressures, and providing more targeted support to drive long-term growth.
Bagudu also highlighted that the implementation of the 2024 budget was progressing well, with significant improvements in revenue collection and expenditure management, despite some delays in achieving pro-rated targets.
“Non-oil revenue streams, in particular, have performed better than initially expected, showing promising progress.
The N47.9 trillion proposed budget for 2025 includes various provisions, particularly in areas such as infrastructure development, social programs, and critical national projects.
Bagudu also revealed that for the first time, the government’s budget will include contributions to the development commissions that had recently been passed or were in the process of being passed by the National Assembly.
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