Lawmakers will anytime from today receive the 2025 Appropriation Bill from the Executive, following its approval yesterday by the Federal Executive Council (FEC).
Yesterday’s FEC meeting also approved the Medium Term Expenditure Framework (MTEF) for 2025-2027, in accordance with the Fiscal Responsibility Act of 2007.
The MTEF is a prerequisite for passage by the lawmakers before the debate on and passage of the budget.
The meeting also reviewed the outgoing year’s budget performance and gave its implementation a pass mark.
The 2025 Budget Estimate is N47.9 trillion is N20 trillion higher than the N27.5 trillion for the outgoing year.
Minister of Budget and Economic Planning, Atiku Bagudu, told reporters in Aso Villa, Abuja after the meeting that FEC pegged the price of crude oil at $75 (it was $77.96 in 2024), exchange rate of N1400 to 1$ dollar (N750/$ in 2024)and oil production of 2.06million barrels per day (1.7mpd in 2024).
Bagudu added that with the growth rate of 3.19 per cent attained in the second quarter of 2024, the Federal Government will continue to tackle inflation, strengthen economic resilience and provide more support.
Expatiating on the estimates, Bagudu said: “Parameters for the 2025- 2027 Medium Term Fiscal Framework, which include an oil price benchmark of $75 barrel for 2025, oil production of 2.06 million barrels a day, as well as an exchange rate of N1400 to $1, and GDP growth of 4.6 per cent. In 2025, the Federal Government budget estimate is the aggregate expenditure estimated at N47 trillion, and this includes a borrowing of N13. 8 trillion.
“Especially for the first time, provisions of contribution to the development commissions that have been passed by the National Assembly, or are in the process of being passed by the National Assembly.”
Bagudu also noted that FEC approved the 2025-2027 MTEF and Fiscal Strategy Papers (FSP).
He said the Executive will put efforts in place to ensure the 2025 budget is passed and signed before the end of December.
He also noted that significantly, Nigeria’s economy had turned in the right direction, achieving the gross positive growth rate in economic stability.
“It also included a review of the 2024 budget implementation, where it acknowledged that a review of the implementation of 2024 budget, promising progress in revenue collection and expenditure management, despite lags in pro rated targets, the overall trajectory shows that fiscal efforts are on track, and that these key non- oil streams are performing better than anticipated. Bagudu added that the Federal Government is working to ensure a January-December budget cycle.
On the other hand, the 2024 national budget, titled: the “Budget of Renewed Hope,” was N27.5 trillion. The budget is projected to address key development needs and boost economic resilience, reflecting the administration’s commitment to rebuilding the nation’s financial and social structures.
In line with this vision, the 2024 budget aimed to generate an expected revenue of N18.32 trillion, leaving a deficit of N9.18 trillion to be covered through borrowing and other sources. The oil benchmark price for the budget was set at $77.96 per barrel, with an exchange rate assumption of N750 to the US dollar.
The budget had a debt service allocation of N8.25 trillion, representing 45 per cent of the projected revenue, confirming Nigeria’s ongoing obligations in debt repayment.
Notably, the government had earmarked N8.7 trillion for capital expenditure to drive infrastructural projects and development initiatives nationwide.
Non-debt recurrent expenditures, including operational and administrative costs, we’re allocated N9.92 trillion, while statutory transfers — funds designated for specific agencies and institutions — were set at N1.37 trillion. In addition, the budget made provisions for a sinking fund of N243.66 billion to support debt management and ensure fiscal sustainability.
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