News Update
Minister of Finance and Coordinating Minister for the Economy, Mr Wale Edun, on Monday said the N13 trillion deficit in the N48 trillion 2025 budget would be financed through borrowing.
He said this while briefing State House Correspondents after the Federal Executive Council (FEC) meeting at the Presidential Villa, Abuja.
The News Agency of Nigeria (NAN) reports that the total projected revenue for 2025 stands at N34,820,000,000,000 out of which the expenditure is projected at 47,960,000,000,000, which is an increase of 36.8 percent from the 2024 estimate.
The deficit for 2025 is projected at 13,140,000,000,000, representing 3.89 percent of GDP.
Edun said the budget was designed within the context of how far and how much progress had been made under the leadership of President Bola Tinubu over the last 18 months.
“And even looking at it from an international context, we, like governments around the world, are concerned about how to achieve fiscal sustainability, revenue to expenditure and borrowing that is balanced, to create an environment in which the economy can grow.
“Private sector-led economies such as ours and others, rely on investors to put down their money in various projects, increase productivity, create jobs, grow the economy and in the case of countries such as ours, bring the people out of poverty,” said Edun.
He explained that the Tinubu administration had put in place policies that ensured market pricing of petroleum products, foreign exchange, and efforts had been made to improve the pricing of electricity.
Edun said: “Just recently Shell announced a $5 billion investment, Total announced a multi-billion dollar investment just before that, and there are so many others expressing interest in investing in this country.
“So, progress has been made. There is greater fiscal sustainability and as I said, even the European countries are struggling to achieve some of these critical macroeconomic reforms.
“This budget is based on government spending in critical areas, but also more importantly, encouraging and making room for private sector investment.”
He further stated that the improvements in the economy were encouraging.
“For the first time in about 25 years we have domestic refinement of petrol, not just to produce petrol but also raw materials for industries across a whole range, from pharmaceuticals to building products to textiles,” concluded Edun.
Meanwhile, the Federal Executive Council (FEC) on Monday approved the 2025 budget proposal following the earlier submission to the National Assembly of the Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF-FSP).
Minister of Budget and Economic Planning, Atiku Bagudu, disclosed this at the end of the council meeting presided over by President Bola Tinubu at the Presidential Villa in Abuja.
Giving details, he emphasised the alignment of the budget with the administration’s Renewed Hope Agenda and the national development plan (2021–2025).
According to him, the 2025 budget proposal outlines the Federal Government’s fiscal plan, aimed at consolidating the progress achieved in 2024 while addressing persistent economic challenges.
The budget is based on oil price benchmark of $75 per barrel with a production target of 2.06 million barrels per day.
It has an exchange rate of N1,400 to the US dollar. The projected revenue is N34.82 trillion while the projected expenditure is N47.96 trillion, reflecting a 36.8 percent increase from the 2024 estimate.
The minister added that the budget deficit N13.13 trillion, equivalent to 3.89 percent of GDP, which is a reduction from the 6.1 percent inherited from the 2023 budget.
Bagudu noted that these parameters are consistent with the MTEF and FSP.
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.
Meanwhile, the management team of National Assembly has announced a change in the initial date scheduled for the presentation of the 2025 budget estimates.
As earlier reported, President Bola Tinubu was scheduled to lay the 2025 budget estimates before the joint session of the National Assembly on Tuesday, December 17, 2024.
However, in the new memo released dated December 16, 2024 signed by Secretary, Human Resources and Staff Development, Dr Umar A. Alkali, Mr. President is to present the 2025 budget estimates on Wednesday, December 18, 2024.
The notice was addressed to the deputy clerk of the National Assembly (DCNA), secretaries of various departments, directors and staff.
The letter reads: “I am directed to inform you that the presentation of 2025 Budget by the President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria, His Excellency, Senator Bola Tinubu has been postponed to Wednesday, December, 18, 2024.
“Staff is to resume their normal duties tomorrow, as the controlled entry instructions earlier given would be observed on Wednesday, December 18, 2024.”
In other news, Wale Edun, Minister of Finance and Coordinating Minister for the Economy, said on Monday that the N13 trillion deficit in the N48 trillion 2025 budget would be financed through borrowing.
The minister said this while briefing State House correspondents after the Federal Executive Council (FEC) meeting at the Presidential Villa, Abuja.
The News Agency of Nigeria (NAN) reports that the total projected revenue for 2025 stands at N34,820,000,000,000, out of which the expenditure is projected at 47,960,000,000,000, which is an increase of 36.8 percent from the 2024 estimate.