The federal government has proposed a budget of N47.9 trillion for the 2025 fiscal year.
The minister of Budget and Economic Planning, Atiku Bagudu, disclosed this to State House correspondents on Thursday after the Federal Executive Council meeting, which was presided over by President Bola Tinubu.
This represents a 66.4 per cent increase over the 2024 Budget. Recall that the 2024 appropriation was N28.78 trillion.
He also disclosed that the council approved the Medium-Term Expenditure Framework (MTEF) and fiscal strategy paper for 2025-2027.
He said the government pegged the crude oil benchmark at $75 per barrel and set oil production at 2.06 million barrels per day.
The exchange rate was pegged at N1,400/$1, and the target for GDP growth is 6.4 per cent.
Bagudu, who added that with the growth rate of 3.19 per cent projected for the second quarter of 2024, said the federal government will continue to tackle inflation, strengthen economic resilience, and provide more support for the economy.
He said “it also included a review of the 2024 budget implementation, where it acknowledged promising progress in revenue collection and expenditure management, despite lags in prorated targets.
“The overall trajectory shows that fiscal efforts are on track, with key non-oil streams performing better than anticipated.
“Additionally, it included parameters for the 2025-2027 Medium-Term Fiscal Framework, which include an oil price benchmark of $75 per barrel for 2025, oil production of 2.06 million barrels per day, an exchange rate of N1,400/$1, and GDP growth of 4.6 per cent.
“It is expected that the federal government’s budget estimate for 2025 will total 47 trillion naira, including a borrowing of 13.8 trillion naira, which is 3.87 per cent of the estimated budget, and other projections.”
“Especially for the first time, provisions have been made for contributions to the development commissions that have been passed by the National Assembly or are in the process of being passed.
He said the executive would make efforts to ensure the 2025 budget is passed and signed before December 2024.
He also noted that significantly, Nigeria’s economy has been moving in the right direction, achieving positive growth rates and economic stability.
The Minister further mentioned that the Council also reviewed the 2024 budget implementation, acknowledging promising progress in revenue collection and expenditure management.
“It also included a review of the 2024 budget implementation, where it acknowledged promising progress in revenue collection and expenditure management, despite lags in prorated targets.
The overall trajectory shows that fiscal efforts are on track, with key non-oil streams performing better than anticipated.”
Bagudu added that the federal government is working to ensure a January-December budget cycle.
The minister also said that the proposed budget would be forwarded to the National Assembly by Friday or, at the latest, by Monday, November 18, 2024.
