Ahead of the 2025 fiscal year, the Budget of Restoration: Securing Peace, Rebuilding Prosperity, has been presented by President Bola Ahmed Tinubu, which captures the financial plan for the country in the coming year.
Presenting the budget on Wednesday at the National Assembly, the President noted that the budget aligns with his administration’s Renewed Hope Agenda, which focuses on poverty reduction, equitable income distribution, and human capital development.
For Nigerians, having experienced the numerous economic challenges in 2024, expectations are high for the coming year to resolve majority of the problems it is currently facing. During his presentation, the President noted that the budget is both bold and necessary to address Nigeria’s socio-economic challenges while charting a course toward sustainable prosperity.
He projected government revenue at ₦34.82 trillion, while total expenditure is pegged at ₦47.90 trillion. Meanwhile, ₦15.81 trillion will be allocated to debt servicing, and the fiscal deficit is estimated at ₦13.08 trillion, or 3.89 percent of the GDP
He noted that the proposal focuses on stabilizing the economy, creating an equitable environment for business, and fostering inclusive growth.
With the budget, inflation will drop from 34.6 percent to 15 percent and the exchange rate of naira will improve from ₦1,700 to ₦1,500 per US dollar from its current level of approximately .
According to the President, “The 2025 Budget seeks to: Restore macroeconomic stability; Enhance the business environment; Foster inclusive growth, employment, and poverty reduction; Promote equitable income distribution and human capital development.
“Our budgetary allocations reflect the administration’s strategic priorities, especially in the implementation of the Renewed Hope Agenda and its developmental objectives”, he said.
He said the overview of the 2025 Budget includes: “The numbers for our 2025 budget proposal tell a bold and exciting story of the direction we are taking to retool and revamp the socio-economic fabric of our society.
“In 2025, we are targeting 34.82 trillion naira in revenue to fund the budget; Government expenditure in the same year is projected to be 47.90 trillion naira, including 15.81 trillion naira for debt servicing; A total of 13.08 trillion naira, or 3.89 percent of GDP, will make up the budget deficit.
“This is an ambitious but necessary budget to secure our future.
“The Budget projects inflation will decline from the current rate of 34.6 percent to 15 percent next year, while the exchange rate will improve from approximately 1,700 naira per US dollar to 1,500 naira, and a base crude oil production assumption of 2.06 million barrels per day (mbpd).
“These projections are based on the following observations: Reduced importation of petroleum products alongside increased export of finished petroleum products; Bumper harvests, driven by enhanced security, reducing reliance on food imports.
“Increased foreign exchange inflows through Foreign Portfolio Investments; Higher crude oil output and exports, coupled with a substantial reduction in upstream oil and gas production costs”, the President said.
