The Federal Executive Council (FEC) has given its nod to the 2025 budget, amounting to N47.96 trillion, ahead of its scheduled presentation to the National Assembly on Wednesday.
Addressing State House correspondents after the FEC meeting chaired by President Bola Tinubu, Mohammed Idris, Minister of Information and National Orientation, confirmed that discussions were ongoing with the National Assembly to facilitate a seamless budget submission.
The budget framework incorporates an oil production benchmark of 2.06 million barrels per day, reflecting improved domestic production supported by enhanced security measures. It also includes a capital expenditure component of 33%, among other economic assumptions.
The approval follows the Federal Executive Council’s earlier decision on November 14 to adopt the 2025 budget, contingent on the passage of the 2025–2027 Medium-Term Economic Framework and Fiscal Strategy Paper (MTEF/FSP) by lawmakers.
Atiku Bagudu, Minister of Budget and Economic Planning, announced that all pending issues related to the budget had been resolved, paving the way for its presentation to the National Assembly within the next 48 hours. Bagudu disclosed that the 2025 budget projects revenues of N34.82 trillion, with total expenditures set at N47.96 trillion.
Providing insights into the government’s fiscal performance under the 2024 budget, Bagudu noted that as of September 2024, the federal government had achieved N14.55 trillion in revenue, representing a 75% performance rate. Expectations remain high for improved outcomes by year-end.
The approved MTEF/FSP outlines critical fiscal assumptions aligned with the Fiscal Responsibility Act of 2007. Projections for 2025 include a Gross Domestic Product (GDP) growth rate of 4.6%, a crude oil price of $75 per barrel, and an exchange rate of N1,400/$, with oil production fixed at 2.06 million barrels per day.
It was learnt that delays in budget submission were attributed to the National Assembly’s extended review of the MTEF/FSP. The Senate, in its approval, adopted an oil benchmark of $75, $76.2, and $75.3 per barrel for 2025, 2026, and 2027, respectively, alongside an exchange rate of N1,400/$ for the three years.
The Senate also approved oil production projections of 2.06 million barrels per day for 2025, increasing to 2.10 million and 2.35 million barrels per day for 2026 and 2027. GDP growth rates were projected at 4.6%, 4.4%, and 5.5% for 2025, 2026, and 2027, respectively, while inflation rates were pegged at 15.75%, 14.21%, and 10.04%.
As a backdrop to the 2025 projections, the 2024 budget, tagged “Budget of Renewed Hope,” allocated a total expenditure of N27.5 trillion ($36.7 billion), with projected revenues of N18.32 trillion ($24.4 billion) and a deficit of N9.18 trillion ($12.2 billion).
Revenue estimates under the 2024 budget included oil revenue at N7.68 trillion, Government-Owned Enterprises contributing N4.07 trillion, non-oil taxes at N3.52 trillion, and independent revenue at N1.91 trillion. Other sources included N4.55 billion from minerals and mining and N1.13 trillion from miscellaneous streams.
The expenditure breakdown showed N9.92 trillion for non-debt recurrent spending, N7.72 trillion for capital expenditure (exclusive of transfers), N8.25 trillion for debt servicing, N1.37 trillion for statutory transfers, and N243.66 billion allocated to the sinking fund.
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