- FEC approves N47.96tr estimated expenditure
- President takes Bill to lawmakers tomorrow
The proposed Federal Government expenditure for 2025 will balance revenue, expenditure and borrowing, Coordinating Minister of the Economy Olawale Edun assured yesterday.
“Like governments around the world, we are concerned about achieving fiscal sustainability. It is about creating a balance between revenue, expenditure, and borrowing to foster an economy that can grow sustainably,” he said.
Edun spoke to State House reporters after the Federal Executive Council (FEC) approved the N47.96tr projected expenditure for next year.
President Bola Ahmed Tinubu presided over the meeting.
According to Edun, the estimates target a revenue of N24.82 trillion, leaving a deficit of N13 trillion.
The minister said the deficit will be financed through borrowing.
According to him, the N47.96tr projected expenditure represents a 36.8 per cent increase from this year’s budget.
He added that the N13.14 trillion deficit is equivalent to 3.89 per cent of the country’s Gross Domestic Product (GDP).
Edun stated that the 2025 budget reflects the administration’s progress over the past 18 months, focusing on fiscal sustainability and economic growth.
He emphasized the importance of balancing revenue, expenditure, and borrowing to create a conducive environment for economic expansion.
The minister highlighted the role of private-sector investment in driving growth, creating jobs, and alleviating poverty, noting that private-sector-led economies, such as Nigeria’s, rely on investors to fund projects that enhance productivity and economic expansion.
“Investors play a critical role in boosting productivity, creating jobs, and bringing people out of poverty. Our reforms are aimed at creating an environment where private sector investment can thrive,” Edun explained.
He cited recent reforms under President Tinubu’s administration, including the removal of petroleum subsidy, market-driven foreign exchange policies, and electricity tariff adjustments, as key factors driving economic improvement.
Edun also pointed to growing investor confidence in the Nigerian economy, referencing announcements by Shell and Total of multi-billion-dollar investments in the country.
“These investments signal renewed confidence in our economy and are testament to the government’s ongoing reform agenda,” he noted.
The minister underscored that the 2025 budget prioritises essential government spending while fostering private-sector-led investments.
He also highlighted a significant milestone in the energy sector, with Nigeria resuming domestic refining of petroleum products for the first time in 25 years.
“For the first time in about 25 years, we are refining petrol domestically, not just for fuel, but also as raw materials for industries like pharmaceuticals, construction, and textiles,” he added.
The proposed 2025 budget, according to Edun, is designed to ensure critical government spending while paving the way for robust private-sector participation to drive long-term economic growth.
What estimates intend to achieve
Minister of Budget and Economic Planning Atiku Bagudu said FEC debated the proposals as presented by Director-General of Budget Office Tanimu Yakubu, which accommodates the adjustments directed by the President.
Bagudu, a former governor of Kabbi State and one-time senator, said: “Today, the Federal Executive Council approved the budget proposals for 2025 with amendments which Mr president directed, following a presentation to the Federal Executive Council, led by the Director General of the Budget Office, Tanimu Yakubu.
“The 2025 framework is based on oil price benchmark of $75 per barrel, oil production of 2.06 million barrels per day and exchange rate of one 1400 naira (to the dollar).
“All these are already included in the medium term expenditure framework which we have presented here, which have also been approved by the National Assembly.”
He explained that the 2025 fiscal plan aims to reinforce macroeconomic stability and foster growth across various sectors, including security gains and building on efforts to improve national stability.
The budget also hopes to enhance critical infrastructure to boost productivity, invest in education, health, and skill-building initiatives.
Similarly, it hopes to expand industrial activity to create jobs and diversify the economy; strengthen the National Agricultural Development Fund to support food security, and advance the gas and compressed natural gas (CNG) initiatives to reduce reliance on petrol.
Another area it focuses on is promoting affordable housing schemes to address the housing deficit.
Bagudu highlighted that these initiatives are designed to expand economic activity, create consumer credit opportunities, and ensure inclusive growth.
Following a presentation by the Director of the Budget Office, President Tinubu directed amendments to the proposal, incorporating comments from FEC members.
These adjustments aim to ensure fiscal prudence and alignment with national priorities, Bagudu stated.
Reflecting on the administration’s economic performance in 2024, Bagudu pointed to successes in reducing the deficit and achieving significant milestones in infrastructure, security, and economic stability.
“The 2025 budget builds on these gains to ensure sustained growth and development,” he stated.
According to the minister, the approved budget proposal will be presented to the National Assembly for legislative approval in the next 48 hours, following consultations with the lawmakers.
However, the presentation of the 2025 Appropriation Bill to the National Assembly by President Tinubu might not hold tomorrow (today).
Minister of Information and National Orientation, Mohammed Idris, said discussions were ongoing that might lead to the postponement of the budget presentation to Wednesday.
The minister, who noted that the discussions were yet to be concluded, said the possibility is there that the budget will be presented to the National Assembly on Wednesday instead of the Tuesday earlier announced by the President of the Senate, Godswill Akpabio.
Akpabio, during plenary last week, announced that President Tinubu would present the 2025 budget on Tuesday.
[TheNation]