FEC Proposes N47.9 Trillion Budget for 2025
Budget proposal sets ambitious targets with N9.2 trillion new borrowing plan
The Federal Government of Nigeria is set to present its most ambitious budget yet, as the Federal Executive Council (FEC) finalizes a N47.9 trillion spending plan for the 2025 fiscal year. The proposal, scheduled for submission to the National Assembly on Monday, reflects the administration’s strategy to navigate current economic challenges while pursuing growth.
Budget and Economic Planning Minister Atiku Bagudu revealed the key parameters of the proposed budget following Thursday’s FEC meeting at the Presidential Villa, chaired by President Bola Tinubu. The framework rests on a number of critical assumptions:
- Crude oil benchmark: $75 per barrel
- Exchange rate projection: N1,400 to the dollar
- Oil production target: 2.06 million barrels daily
- Proposed new borrowing: N9.2 trillion
The government’s fiscal strategy builds on current economic indicators, including a 3.19% growth rate recorded in Q2 2024. The administration aims to strengthen several key areas:
- Inflation management
- Economic resilience enhancement
- Employment generation
- Business environment improvement
- Youth development initiatives
- Social investment programs
The FEC’s review of the 2024 budget implementation showed encouraging signs in revenue collection and expenditure management, with non-oil revenue streams exceeding expectations despite some challenges in meeting prorated targets.
According to Bagudu, the government’s economic agenda will be supported by pending legislation, including the Economic Stabilisation Bill and Tax Reforms Bill, which the administration views as crucial for achieving robust growth in 2025. The medium-term expenditure framework and fiscal strategy paper have also received FEC approval for submission to the National Assembly.
