President Bola Tinubu presented the 2025 “Budget of Restoration: Securing Peace and Rebuilding Prosperity” to the national assembly, emphasizing a collective approach to transforming Nigeria’s economic and social landscape.
Fiscal Framework and Economic Projections
The proposed budget aims to achieve a fiscal deficit of 3.89% of GDP, with projected revenues of N34.82 trillion. Key economic parameters include:
– Crude oil price benchmark: $75 per barrel
– Oil production target: 2.06 million barrels per day
– Exchange rate: N1,500 per dollar
Despite exceeding the Fiscal Responsibility Act’s 3% deficit threshold, the government argues this is necessary to fund critical infrastructure and social programs.
Security
With a substantial allocation of N4.91 trillion (10% of total budget), defense takes center stage. The budget focuses on:
– Acquiring modern military hardware
– Upgrading training facilities
– Enhancing personnel welfare
– Restoring federal authority in ungoverned spaces
Healthcare
The healthcare sector receives N2.48 trillion, a 50% increase from 2024. Key initiatives include:
– N402 billion for healthcare infrastructure
– N282.65 billion for Basic Care Fund
– Commitment to universal health corporate initiatives
Education
Education is allocated N3.52 trillion, representing a 49.15% increase from 2024:
– N825 billion for educational infrastructure
– Funding for Universal Basic Education
– Support for nine new higher educational institutions
Infrastructure
N4.06 trillion is dedicated to infrastructure development, aimed at:
– Connecting highways
– Energizing industries
– Revitalizing commerce
– Creating job opportunities
Inflation and Economic Stability
The government projects a significant reduction in inflation from 34.6% to 15% in 2025, attributed to:
– Enhanced security measures
– Domestic petroleum product refinement
– Increased export of refined products
– Projected increase in oil output
– Improved macroeconomic policies
Presidential Vision
Tinubu described the budget as a collective endeavour to restore Nigeria’s greatness, calling on all sectors of society – government, institutions, private enterprise, and citizens – to participate in rewriting the nation’s narrative.
