December 18, (THEWILL) – President Bola Tinubu, on Wednesday, December 18, presented the 2025 Appropriation Bill of N49.7 trillion to a Joint Session of the National Assembly.
It is his second substantive Appropriation Bill since assuming office on May 29, 2023. He, however, had submitted the 2023 Supplementary Budget to the National Assembly in October 2023.
The budget is predicated on the parameters set out in the 2025-2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF-FSP), earlier approved by the National Assembly.
The framework is based on an oil price benchmark of $75 per barrel, daily oil production of 2.06 million barrels, an exchange rate of N1,500 to the dollar, a GDP growth rate of 4.6% as well as a 15.75% inflation rate.
Tagged “Budget of Restoration: Securing Peace, Rebuilding Prosperity”, security and defence, infrastructure, health and education were some of the sectors with the highest allocations.
A highlight of the budget shows defence and security taking N4.91trn, infrastructure received N4.06trn, health got N2.48trn and education, N2.5trn.
A breakdown of the 2025 budget shows total projected revenue of N34,820,000,000,000 out of which the expenditure is projected at 47,960,000,000,000, an increase of 36.8 percent from the 2024 estimate. While N15.81 trillion is allocated to debt servicing, the fiscal deficit is estimated at N13.08 trillion, or 3.89 percent of the GDP.
The President said the Federal Government aims to stabilise the exchange rate at N1,500 to the dollar to ensure the smooth implementation of the 2025 budget.
“The budget projects that inflation will decline from the current rate of 34.6% to 15% next year, while the exchange rate will improve from approximately N1,700 per dollar to N1,500. The base crude oil production assumption is set at 2.06 million barrels per day.
“The projections are based on the following observations: reducing the importation of petroleum products, increasing exports of refined petroleum products, and achieving a bumper harvest driven by enhanced security, which will reduce reliance on food imports. Additionally, we aim to increase foreign exchange inflows through foreign portfolio investments.
“Our crude oil output and exports will improve, coupled with a substantial reduction in upstream oil and gas production costs.”
President Tinubu, who arrived at the National Assembly complex at about 12:10 pm, was accompanied by Secretary to the Government of the Federation (SGF), Senator George Akume; Chief of Staff to the President, Femi Gbajabiamila; minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Budget and National Planning, Atiku Bagudu; Minister of Marine and Blue Economy, Gboyega Oyetola; Minister of Solid Minerals, Dele Alake; Minister of Health, Prof. Ali Pate; Minister of State for Foreign Affairs, Amb. Bianca Ojukwu, amongst others
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