The Federal Executive Council (FEC) has approved a proposed national budget of ₦47.9 trillion for the 2025 fiscal year. This decision was announced by the Minister of Budget and Economic Planning, Atiku Bagudu, during a briefing with State House correspondents on Thursday, following a meeting led by President Bola Tinubu.
The budget proposal is part of the Medium-Term Expenditure Framework (MTEF) for 2025 to 2027, formulated in line with the 2007 Fiscal Responsibility Act. Bagudu explained, “The budget size that was approved for presentation to the National Assembly in the MTEF is ₦47.9 trillion, with new borrowings of ₦9.2 trillion to finance the budget deficit in 2025.”
He noted that the administration has set conservative fiscal objectives to maintain stability and facilitate growth, adding, “We need to sustain the commendable market deregulation of petroleum prices and exchange rates and compel the Nigerian National Petroleum Corporation Limited to lower its oil and gas production cost significantly.”
Bagudu also mentioned the potential need to amend sections of the Petroleum Industry Act (PIA) 2021 to address significant fiscal risks, further indicating that the FEC approved both the MTEF and a physical strategy paper for submission to the National Assembly.
This submission is accompanied by economic stabilization and tax reform bills aimed at driving robust growth in 2025. “We believe we will have very, very strong growth in 2025,” Bagudu stated.
The framework includes projections of a 4.6 percent GDP growth rate, an exchange rate of $75 to the naira, and oil production of 2.06 million barrels per day, setting a foundation for the country’s economic strategy going forward.
