Nigerian President Bola Tinubu’s administration has proposed a ₦47.9 trillion budget for the 2025 fiscal year, marking a 35% increase from the ₦35.5 trillion budget for 2024. The budget includes ₦9.92 trillion for non-debt recurrent spending, ₦7.72 trillion for capital projects, and ₦8.25 trillion for debt servicing.
The proposal, approved by the Federal Executive Council, projects a 4.6% GDP growth rate, crude oil at $75 per barrel, an exchange rate of ₦1,400 to the dollar, and oil production of 2.06 million barrels per day.
To address the budget deficit, the government plans to borrow ₦13.8 trillion in 2025, representing 3.87% of the estimated GDP. President Tinubu also submitted a request to the National Assembly for a $2.2 billion external loan to help finance the 2024 deficit of ₦9.7 trillion.
The administration is emphasizing fiscal reforms, including compelling the Nigerian National Petroleum Corporation Limited to lower production costs and potentially amending the Petroleum Industry Act 2021 to mitigate risks.
Additionally, the President has forwarded the 2025-2027 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) to the National Assembly, urging swift legislative approval to guide future budgets.
