Olusegun Alebiosu, CEO of FirstBank Group, expresses confidence that the proposed ₦49.7 trillion 2025 budget will stimulate economic growth, benefiting households and businesses across Nigeria.
Speaking at the Nigeria Economic Outlook 2025 event, themed “Nigeria 2025: Path to Economic Rebound & Recovery,” Alebiosu highlights encouraging signs for the economy in 2025. He acknowledges the challenges posed by government reforms in 2024, which led to inflation peaking at 34.6% in November, the highest in 30 years.
Despite these hurdles, Alebiosu projects a brighter outlook. “The ₦49.7 trillion budget is expected to provide adequate economic stimulus, supported by improved government revenue and enhanced budget implementation,” he says.
Alebiosu identifies positive signs of recovery:
- GDP Growth: Nigeria’s GDP grows consistently quarter-on-quarter in 2024, with a 3.46% increase recorded in Q3.
- Improved Fiscal Health: The revenue-to-debt service ratio improves to 68%, signaling better fiscal management.
- Foreign Reserves Rise: Reserves exceed $40 billion, boosting economic confidence.
- Forex Market Stability: An electronic foreign exchange matching system, introduced in December 2024, stabilizes the currency market.
- Downstream Sector Gains: Competition in the oil sector reduces fuel prices, while the reactivation of the Port Harcourt and Warri refineries supports economic recovery.
Key Budget Allocations
- Health Initiatives: ₦231.7 billion is allocated for immunization, malaria vaccination, and vaccine tracking. Of this, ₦188.5 billion is directed to GAVI to strengthen national immunization efforts.
- Infrastructure Investments: ₦4 billion is set aside for a presidential helipad and jetty in Lagos, part of ₦1.1 trillion allocated to the Ministry of Works for capital projects.
- Green Line Metro Rail Project: ₦146.14 billion is allocated for the Lagos Green Line rail, a 68-kilometer network connecting Lekki Free Zone, Victoria Island, and Marina.
The National Assembly is committed to passing the 2025 budget in early February. The joint appropriation committee of both chambers will submit their report for review and approval by January 31, 2025.
