President Bola Ahmed Tinubu, Wednesday, presented to a joint session of the National Assembly the 2025 Budget of restoration, securing peace and building prosperity with targeted revenue of N34.82trillion to fund the projected aggregate expenditure of N49.7trillion Appropriation Bill.
President Tinubu, in the proposed budget with N13.0trillion deficit, earmarked N4.91trillion for Defence and Security which topped the Bill, followed by N4.06trillion for Infrastructure, and N3.5trillion for Education while N2.48trillion was proposed for Health.
In his budget speech, the president also stated that N15.81trillion was earmarked for debt servicing with salient parameters of 2.06million barrels of oil production per day, exchange rate of N1, 500 to a US dollar, inflation rate of 15% as against 34.6% it is for now.
He said: “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 N34.82 trillion naira in revenue to fund the budget.
“Government expenditure in the same year is projected to be N47.90 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: (i) Reduced importation of petroleum products alongside increased export of finished petroleum products, (ii) Bumper harvests, driven by enhanced security, reducing reliance on food imports, (iii) Increased foreign exchange inflows through Foreign Portfolio Investments and (iv) Higher crude oil output and exports, coupled with a substantial reduction in upstream oil and gas production costs.”
…On economic reforms
He informed the federal lawmakers that series of economic reforms being carried out by his government were yielding positive results.
“Our economy grew by 3.46 percent in the third quarter of 2024, up from 2.54 percent in the third quarter of 2023.
“Our Foreign Reserves now stand at nearly 42 billion US dollars, providing a robust buffer against external shocks. Our rising exports are reflected in the current trade surplus, which now stands at 5.8 trillion naira, according to the National Bureau of Statistics.
“These clear results of gradual recovery, among others, reflect the resilience of our economy and the impact of deliberate policy choices we made from the outset,” Tinubu said.
The president further added that his administration had within the last 18 months, released N34 billion naira to over 300,000 students via the Nigeria Education Loan Fund (NELFUND).
“In the 2025 Budget, we have made provision for N826.90 billion naira for infrastructure development in the educational sector. This provision also includes those for the Universal Basic Education (UBEC) and the nine new higher educational institutions.
“We are convinced that Universal Health Coverage initiatives will strengthen primary healthcare systems across Nigeria. In this way, we have allocated 402 billion naira for infrastructure investments in the health sector in the 2025 Budget and another 282.65 billion naira for the Basic Health Care Fund. Our hospitals will be revitalised with medication and better resources, ensuring quality care for all Nigerians,” he said.
On agriculture, the president said: “Increasing agricultural production is central to our food security agenda, but insecurity has crippled this vital sector. We are supporting our farmers with funding and inputs to reignite productivity. Food security is non-negotiable. In this regard, we are taking bold steps to ensure that every Nigerian can feed conveniently, and none of our citizens will have to go to bed hungry.
“Our 2025 budget proposal is not just another statement on projected government revenue and expenditures. It is one that calls for action. Our nation faces existential threats from corruption and insecurity and suffers from many past poor choices. These challenges are surmountable when we work collaboratively to overcome them.
“We must rewrite the narrative of this nation together, with every leader, institution, and citizen playing their part.
“The time for lamentation is over. This is a time to act. A time to support and promote greater investment in the private sector. A time for our civil servants to faithfully execute our policies and programmes.
“It is a time for every Nigerian to look hopefully towards a brighter future because a new day has dawned for us as a nation.”
President Tinubu also explained that other expectations for 2025 will include reduced importation of petroleum products alongside increased export of finished petroleum products, bumper harvests driven by enhanced security, reduced reliance on food imports, increased foreign exchange inflows through foreign portfolio investments, higher crude oil output and exports, and a substantial reduction in upstream oil and gas production costs.
…Akpabio’s remarks
Welcoming the president, Senate President Godswill Akpabio, thanked Tinubu for his bold and courageous effort at rebuilding the Nigerian economy.
He said the lawmakers would remain selfless and patriotic in supporting the reforms, particularly at the grassroots level.
Akpabio also announced that the implementation of the 2024 budget will continue till June 2025.
He described President Tinubu as a ‘national treasure.’
The lawmaker commended the president for improving security, international recognition, and the treatment of Nigerians with more dignity, facilitating student loans, reducing debt servicing, enhancing social security for the less privileged, and signing the minimum wage bill promptly.
The Senate President said those critical of the proposed tax reforms before the National Assembly should create more time to study the bill’s details.
…Abbas
Moving the vote of thanks, Speaker House of Representatives Hon. Tajudeen Abbas commended President Tinubu, saying the reforms he introduced were in order, and will see Nigeria into economic breakthrough.
“The proposed 2025 budget of N49.7 trillion—a 35% increase over 2024—is really ambitious and commendable,” he said.
Abbas further said “the projections of 4.6% GDP growth, a crude oil price of $75 per barrel, an exchange rate of N1, 400 to the dollar, and oil production of 2.06 million barrels per day are bold but achievable.
“However, Nigeria’s fiscal realities warrant critical reflection. Despite being Africa’s most populous nation with over 220 million people, our 2024 national budget of $36.7 billion remains modest compared to countries like South Africa, with a budget of $160 billion for its 60 million citizens; Egypt, with $110 billion for 110 million people; Algeria, with $60 billion for 45 million people; and Morocco, allocating $50 billion for its 37 million residents.
“Indeed, Nigeria’s low tax revenue also remains a major constraint. Our tax-to-GDP ratio, currently at approximately 10.9% for 2024, is among the lowest in Africa, significantly below the continental average of 15.6%. In comparison, South Africa’s tax-to-GDP ratio stands at 25.4%, while Rwanda and Ghana, with much smaller populations, report ratios of 15.1% and 14.1%, respectively…
“Mr. President, let me assure you that the National Assembly is fully committed to supporting the successful implementation of the 2025 budget. This is not merely your budget; it is a national project requiring collaboration across all arms of government. We will work to ensure its timely passage, provide legislative support for critical reforms, and conduct robust oversight to guarantee transparency and efficiency in its execution.”