By Okeke Eunice
On Wednesday, President Bola Ahmed Tinubu presented the 2025 Budget, titled Budget of Restoration, Securing Peace, and Building Prosperity, to a joint session of the National Assembly. The budget aims to generate N34.82 trillion in revenue to finance a proposed total expenditure of N49.7 trillion in the Appropriation Bill.
President Tinubu’s proposed budget, which includes a N13.0 trillion deficit, allocates N4.91 trillion to Defence and Security, making it the highest priority. This is followed by N4.06 trillion for Infrastructure, N3.5 trillion for Education, and N2.48 trillion for Health.
In his address, the president revealed that N15.81 trillion has been set aside for debt servicing. Key budget assumptions include an oil production target of 2.06 million barrels per day, an exchange rate of N1,500 to the US dollar, and a projected inflation rate of 15%, down from the current 34.6%.
He stated: “The figures in our 2025 budget proposal reflect a bold and promising vision for transforming and revitalizing the socio-economic structure of our society. In 2025, we aim to generate N34.82 trillion in revenue to finance the budget.”
Government spending for the same year is expected to reach N47.90 trillion, which includes N15.81 trillion for debt servicing. The budget deficit is projected at N13.08 trillion, or 3.89 percent of GDP. This is an ambitious yet essential budget to secure our future.
The Budget forecasts a reduction in inflation from the current 34.6 percent to 15 percent next year. It also expects the exchange rate to improve from around N1,700 per US dollar to N1,500, with an assumed base crude oil production of 2.06 million barrels per day.
President Tinubu informed federal lawmakers that the economic reforms implemented by his government are yielding positive outcomes.
“Our economy grew by 3.46 percent in the third quarter of 2024, an improvement from 2.54 percent in the same period last year,” he stated.
“Our Foreign Reserves have reached nearly 42 billion US dollars, strengthening our ability to withstand external shocks. Additionally, our increasing exports have resulted in a trade surplus of 5.8 trillion naira, according to the National Bureau of Statistics. These positive signs of gradual recovery demonstrate the resilience of our economy and the effectiveness of the policy decisions we’ve made.”
The president also highlighted that his administration had allocated N34 billion to over 300,000 students through the Nigeria Education Loan Fund (NELFUND) over the past 18 months.
“In the 2025 Budget, we have earmarked N826.90 billion for infrastructure development in the education sector, which includes funding for Universal Basic Education (UBEC) and the nine new higher educational institutions. We also believe that Universal Health Coverage will strengthen primary healthcare systems, so we have allocated N402 billion for health infrastructure and N282.65 billion for the Basic Health Care Fund. Our hospitals will be equipped with better resources and medication to provide quality care for all Nigerians,” he said.
On agriculture, the president emphasized: “Increasing agricultural production is central to our food security, but insecurity has hindered this crucial sector. We are supporting our farmers with funding and resources to boost productivity. Food security is essential, and we are committed to ensuring that every Nigerian has access to food, with no one going to bed hungry.”
He continued, “Our 2025 budget is not just about projected revenue and expenditures. It is a call to action. Our nation faces challenges from corruption and insecurity, but these can be overcome through collaboration and effort. We must work together to reshape the narrative of this nation, with every leader, institution, and citizen playing their role.”
“The time for lamentation is over. Now is the time to act—support private sector investment, and for civil servants to execute policies effectively,” he said. “It is a time for every Nigerian to look forward to a brighter future, as a new day has dawned for our nation.”
The president also outlined expectations for 2025, including reducing petroleum product imports while boosting exports of refined products, achieving bumper harvests thanks to improved security, reducing food import dependence, increasing foreign exchange from portfolio investments, raising crude oil production and exports, and significantly lowering upstream oil and gas production costs.
Senate President Godswill Akpabio welcomed President Tinubu, expressing gratitude for his bold and courageous efforts in rebuilding Nigeria’s economy.
He assured the president that lawmakers would remain committed and patriotic in supporting the reforms, especially at the grassroots level.
Akpabio also announced that the implementation of the 2024 budget would continue until June 2025 and hailed President Tinubu as a “national treasure.”
He praised the president for improving security, earning international recognition, treating Nigerians with more dignity, facilitating student loans, reducing debt servicing, enhancing social security for the less privileged, and swiftly signing the minimum wage bill.
The Senate President urged critics of the proposed tax reforms to take more time to thoroughly examine the details of the bill.
In his vote of thanks, Speaker of the House of Representatives, Hon. Tajudeen Abbas, praised President Tinubu for the reforms he has introduced, stating they were well-timed and would lead Nigeria toward an economic breakthrough.
“The proposed 2025 budget of N49.7 trillion, representing a 35% increase over 2024, is ambitious and commendable,” he said.
Abbas further noted, “The projections of 4.6% GDP growth, a crude oil price of $75 per barrel, an exchange rate of N1,400 to the dollar, and oil production of 2.06 million barrels per day are bold but achievable.”
However, he pointed out that Nigeria’s fiscal realities deserve careful consideration. Despite being Africa’s most populous nation with over 220 million people, Nigeria’s 2024 budget of $36.7 billion is modest compared to countries like South Africa, which has a $160 billion budget for its 60 million citizens, Egypt with $110 billion for 110 million people, Algeria with $60 billion for 45 million people, and Morocco with $50 billion for 37 million residents.
He also emphasized that Nigeria’s low tax revenue is a major challenge. With a tax-to-GDP ratio of about 10.9% in 2024, Nigeria lags behind the continental average of 15.6%. For comparison, South Africa’s ratio is 25.4%, while Rwanda and Ghana have 15.1% and 14.1%, respectively.
“Mr. President, I assure you that the National Assembly is fully committed to supporting the successful implementation of the 2025 budget. This is not just your budget; it’s a national initiative that requires collaboration across all branches of government. We will ensure its timely passage, support critical reforms, and provide rigorous oversight to ensure transparency and efficiency in its execution,” he said.