President Bola Tinubu has presented the 2025 Appropriation Bill to a joint session of the Senate and House of Representatives. The proposed budget, amounting to N49.7 trillion, carries a deficit of N13 trillion to be financed through new borrowings. The budget is tagged “Budget of Restoration: Securing Peace, Rebuilding Prosperity” and aims to address economic stability, growth, and human capital development. It sets a revenue target of N34.82 trillion to fund an aggregate expenditure of N47.9 trillion.
Key Features of the 2025 Budget
The proposed budget is based on key assumptions outlined in the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP). These include:
- Oil Price Benchmark: $75 per barrel
- Oil Production: 2.06 million barrels per day
- Exchange Rate: N1,400 to $1
- GDP Growth Rate: 4.6%
- Inflation Rate: Projected to decline from 34.6% to 15%
The budget allocates substantial funds to critical sectors:
- Defence and Security: N4.91 trillion
- Infrastructure: N4.06 trillion
- Education: N3.5 trillion
- Health: N2.48 trillion
- Debt Servicing: N15.81 trillion
The budget deficit of N13.08 trillion represents 3.89% of the GDP, exceeding the legal threshold but deemed necessary for achieving the administration’s ambitious goals.
Economic Projections and Strategic Priorities
President Tinubu emphasized that the budget aligns with his administration’s “Renewed Hope Agenda,” which focuses on stabilizing the economy, improving livelihoods, and positioning Nigeria for long-term growth. He cited progress made in 2024, including an increase in Nigeria’s GDP growth rate from 2.54% in Q3 2023 to 3.46% in Q3 2024. Foreign reserves stand at nearly $42 billion, and the country’s trade surplus is N5.8 trillion.
The 2025 budget aims to restore macroeconomic stability, create employment opportunities, and promote inclusive growth. President Tinubu noted the following drivers of economic improvement:
- Reduced Importation of Petroleum Products: Increased exports of refined petroleum products.
- Enhanced Security: Promoting bumper harvests and reducing reliance on food imports.
- Increased Foreign Exchange Inflows: Attracting foreign portfolio investments.
- Higher Crude Oil Production: Coupled with reduced upstream production costs.
The budget also projects improvements in the exchange rate from N1,700 to N1,500 per dollar and a decline in inflation to 15%.
Legislative and Public Reactions
National Assembly’s Perspective
Speaker of the House of Representatives, Abbas Tajudeen, commended the bold economic reforms initiated by the Tinubu administration, including the removal of fuel subsidies and unification of foreign exchange rates. He emphasized the need for reflective fiscal policies and highlighted Nigeria’s modest budget-population ratio compared to other African nations. For example:
- Nigeria: $36.7 billion budget for 220 million people.
- South Africa: $160 billion for 60 million people.
- Egypt: $110 billion for 110 million people.
- Algeria: $60 billion for 45 million people.
Abbas urged the government to stabilize prices, expand infrastructure, and invest in education, healthcare, and security.
Opposition Criticism
The Peoples Democratic Party (PDP) criticized the budget as anti-people, claiming it lacks provisions for critical sectors like agriculture, electricity, and small businesses. The party’s National Publicity Secretary, Debo Ologunagba, described the budget as disingenuous, citing:
- Lack of transparency in capital and recurrent expenditure.
- Heavy reliance on taxes and levies to finance the deficit.
- Insufficient investment in the productive sector, risking further economic instability.
The PDP urged the National Assembly to revise the budget, ensuring provisions for food security, job creation, and poverty alleviation.
President’s Vision for Economic Renewal
President Tinubu reaffirmed his commitment to restructuring Nigeria’s economy, emphasizing that the 2025 budget is a crucial step towards building a sustainable future. He acknowledged the challenges faced by Nigerians and expressed confidence in the resilience of the economy and its people.
“The journey of economic renewal and institutional development is very much underway. The road of reforms is now clearly upon us, and I know this has not been easy. However, these sacrifices will not be in vain. This budget lays the foundation for peace, prosperity, and hope,” Tinubu said.
Conclusion
The 2025 Appropriation Bill reflects the Tinubu administration’s ambitious roadmap for economic recovery and development. While it has garnered mixed reactions from lawmakers and the public, its success will depend on effective implementation and the collective effort of all stakeholders. The proposed measures aim to address Nigeria’s pressing challenges, including inflation, unemployment, and infrastructure deficits, while setting the stage for a more prosperous future.
