December 18, (THEWILL) – The Federal Government will spend N15.81 trillion on debt servicing in the 2025 fiscal year, a figure higher than the total allocation for defence, infrastructure, education, and health.
President Bola Tinubu had prioritized defence, infrastructure, education, and health as a major focus of the 2025 budget presented Wednesday before the joint session of the National Assembly.
The debt servicing figure is higher than the N11.72 trillion allocated for defence and security (N4.91 trillion), infrastructure (N4.06 trillion), education (N3.5 trillion), and health (N2.4 trillion).
Titled, “The restoration budget, securing peace, building prosperity,” the 2025 appropriation has about N13.08 trillion in deficits, or 3.89% of GDP, to be funded through borrowings.
Tinubu told the lawmakers that the government is targeting N34.82 trillion in revenue to fund the budget.
The budget also projects inflation will decline from the current rate of 34.6 percent to 15 percent next year, while the exchange rate will improve from approximately N1,700 to N1,500 for a US dollar with a projected crude oil production of 2.06 million barrels per day at $75 per barrel.
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