The Federal Executive Council (FEC) has approved the 2025 budget proposal following the earlier submission of the Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF-FSP) to the National Assembly.
The Minister of Budget and Economic Planning, Atiku Bagudu, made this known after Monday’s council meeting, which was presided over by President Bola Tinubu at the Presidential Villa in Abuja.
Bagudu explained that the proposed 2025 budget aligns with the administration’s Renewed Hope Agenda and the National Development Plan (2021–2025). According to him, the budget aims to consolidate the progress achieved in 2024 while addressing Nigeria’s ongoing economic challenges.
The fiscal parameters of the 2025 proposal include an oil price benchmark set at $75 per barrel and a production target of 2.06 million barrels per day. The exchange rate assumption is pegged at N1,400 to the US dollar. Projected government revenue stands at N34.82 trillion, while expenditure is estimated at N47.96 trillion, marking a 36.8% increase from the 2024 budget.
Bagudu further revealed that the budget deficit is projected at N13.13 trillion, which is 3.89% of GDP. He highlighted that this figure reflects a notable reduction from the 6.1% deficit inherited from the 2023 budget. These parameters, he emphasized, are consistent with the MTEF-FSP framework already submitted to the legislature.
Detailing the focus areas of the fiscal plan, Bagudu stated that the 2025 budget is designed to reinforce macroeconomic stability, promote growth across sectors, and sustain national progress. Key priorities include strengthening security to improve stability, enhancing critical infrastructure to drive productivity, and investing in education, healthcare, and skill-building initiatives.
The budget also targets job creation and economic diversification by expanding industrial activity. It proposes bolstering the National Agricultural Development Fund to boost food security and advancing gas initiatives, including compressed natural gas (CNG), to reduce dependence on petrol. Additionally, affordable housing schemes will be promoted to address Nigeria’s housing deficit, while consumer credit systems will be expanded to enhance economic inclusion.
The minister stressed that these measures are designed to accelerate economic activity, create employment, and ensure inclusive growth for all Nigerians. Reflecting on 2024’s economic performance, Bagudu noted significant achievements in reducing fiscal deficits, improving infrastructure, and bolstering national security.
President Bola Tinubu, following a presentation by the Director of the Budget Office, directed amendments to incorporate feedback from FEC members. Bagudu emphasized that these changes aim to ensure fiscal prudence and align the budget with national priorities.
The minister concluded by announcing that the approved budget proposal would be presented to the National Assembly within the next 48 hours, after consultations with lawmakers. He expressed confidence that the 2025 budget would build on existing gains to ensure sustained economic growth and development.
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