Tinubu Presents 2025 Budget Proposal: Nigeria's Path to Economic Growt

Tinubu Presents 2025 Budget Proposal: Nigeria's Path to Economic Growth

President Bola Tinubu is set to present the 2025 budget proposal to the National Assembly today, November 15, marking a significant step towards maintaining Nigeria's January-December budget cycle. The proposed budget of ₦47.9 trillion, approved by the Federal Executive Council (FEC), represents a 35 percent increase from the 2024 total budget of ₦35.5 trillion . This expansionary budget aims to lift millions of Nigerians out of poverty.

The Minister of Budget and Economic Planning, Atiku Bagudu, expressed confidence that the budget proposal will be approved by the National Assembly before the end of the year, citing the strong relationship between the executive and legislative branches . This cooperation is crucial in ensuring the timely passage of the budget, which will facilitate Nigeria's economic growth and development.

The 2025 budget is part of the Medium Term Expenditures Framework (MTEF) for 2025-2027, aligning with the Fiscal Responsibility Act of 2007 . The MTEF projects a gross domestic product (GDP) growth rate of 4.6 percent, crude oil price of $75 per barrel, exchange rate of N1400/dollar, and oil production of 2.06 million barrels per day .

Breakdown of the Proposed 2025 Budget

- _Non-debt Recurrent Expenditure_: ₦9.92 trillion

- _Capital Expenditure_: ₦7.72 trillion (exclusive of transfers)

- _Debt Service_: ₦8.25 trillion

- _Statutory Transfer_: ₦1.37 trillion

- _Sinking Fund_: ₦243.66 billion 

To achieve the projected revenue, the federal government has estimated oil revenue at ₦7.68 trillion, with government-owned enterprises tasked with contributing ₦4.07 trillion . Additionally, the FEC approved a fresh external borrowing of $2.2 billion, comprising $1.7 billion and SUKUK financing of $500 million .

The Minister of Finance, Wale Edun, noted that this borrowing plan will strengthen the country's finances and enhance economic reforms . The government also aims to tackle Nigeria's 22 million housing deficit through a ₦250 billion real estate investment fund, providing long-term, affordable mortgage financing for Nigerians .