The federal government, led by President Bola Tinubu, has proposed a budget of ₦47.9 trillion for the 2025 fiscal year, a figure that includes ₦9.22 trillion in new borrowings to address the budget deficit.
This proposal was approved by the Federal Executive Council (FEC) during a meeting at the Aso Rock Villa in Abuja, and the details were shared by the Minister of Budget and Economic Planning, Atiku Bagudu, following the session.
Bagudu also highlighted the approval of the Medium Term Expenditure Framework (MTEF) for 2025-2027, which sets the groundwork for economic planning.
Key parameters of the budget include an oil price benchmark of $75 per barrel, an oil production target of 2.06 million barrels per day, an exchange rate of ₦1,400 to the US dollar, and a GDP growth rate target of 4.6%.
The Minister explained that this proposed budget and the associated fiscal strategies will be submitted to the National Assembly, with plans to present the MTEF document on either November 15 or November 18.
The estimated ₦47.9 trillion in aggregate expenditure will also account for contributions to various development commissions recently approved by the National Assembly
Bagudu emphasized ongoing efforts to ensure economic stability, including the deregulation of petroleum prices and exchange rates.
Additionally, the government aims to push the Nigerian National Petroleum Corporation Limited (NNPCL) to reduce production costs and consider amending parts of the Petroleum Industry Act 2021 to mitigate risks affecting national revenue.
This proposed budget reflects the government’s plan to continue significant investments in key sectors while addressing financial constraints through borrowing and strategic economic reforms.