The Federal Executive Council (FEC) has given the final approval for Nigeria’s 2025 budget proposal, with a planned presentation to the joint session of the National Assembly scheduled for Wednesday, December 18. The delay, initially set for Tuesday, was announced on Monday to allow for last-minute adjustments to the budget, according to government sources.
President Bola Tinubu is expected to present the proposed N47.96 trillion budget, a significant 36.8% increase from the 2024 fiscal year’s projections, to lawmakers on Wednesday.
The budget size aligns with the Medium-Term Expenditure Framework (MTEF) 2025–2027, which was endorsed by the Senate on November 22. The MTEF outlines fiscal targets, including an oil price benchmark of $75 per barrel, oil production target of 2.06 million barrels per day, and an exchange rate of N1,400 to the US dollar.
The revised presentation schedule reflects the need for final refinements, as confirmed by the Minister of State for Agriculture, Sabi Abdullahi. Abdullahi stated that the budget presentation, initially set for Tuesday, would now take place on Wednesday to allow the executive arm to make “one or two adjustments.”
He emphasized that the changes are part of the final preparations before the document is submitted to lawmakers for approval.
The budget proposal includes a deficit projection of N13.13 trillion, or 3.89% of GDP, with a plan for new borrowings totaling N9.22 trillion. The total projected revenue for the 2025 fiscal year is N34.82 trillion, with expenditure set at N47.96 trillion.
Following the Federal Executive Council meeting on Monday, Minister of Budget and Economic Planning, Abubakar Bagudu, explained that the government had considered input from council members before finalizing the budget figures.
He added that, despite the delay, the budget would align with the government’s goal of adhering to a January-December fiscal year, as outlined in the MTEF.
In his comments, Bagudu also provided an update on Nigeria’s oil production targets. Despite challenges in the sector, he expressed confidence that the country would meet its target of producing 2.06 million barrels per day.
Additionally, the government remains focused on achieving a strong non-oil revenue performance, thanks to policies like the deregulation of the petroleum sector.
Regarding the 2024 budget, Bagudu highlighted that, as of September 30, 2024, the country had collected N14.55 trillion in revenue, which is 75% of the pro-rated amount for that period. Expenditure for 2024 was pegged at N21 trillion, with a significant portion allocated to debt servicing, personnel costs, and capital projects.
The delayed budget presentation has raised questions regarding its impact on the country’s fiscal operations. However, Bagudu reassured that Nigeria’s constitutional framework would allow the government to continue functioning even if the 2025 budget is not signed before December 31, as long as the presentation is made and discussions continue with the National Assembly.