…Prioritises security, infrastructure, education
…As PDP kicks, describes targets as unrealistic, insensitive
By Seun Ibiyemi and Matthew Denis
In his 2025 budget proposal, President Bola Tinubu has set ambitious economic targets, aiming to reduce Nigeria’s inflation rate to 15% and bring the exchange rate to N1,500 per US dollar.
These targets are part of a broader economic plan aimed at stabilising the nation’s financial system, fostering growth, and improving the standard of living for Nigerians. The proposed budget, titled “The Restoration Budget: Securing Peace, Rebuilding Prosperity,” outlines strategies to strengthen key sectors, including security, infrastructure, education, and healthcare, with the goal of revitalising the Nigerian economy.
President Bola Tinubu, yesterday presented the 2025 Appropriation Bill of N47.96 trillion to a Joint Session of the National Assembly.
Recall that it is his second substantive Appropriation Bill since assuming office on May 29, 2023.
He, however, had submitted the 2023 Supplementary Budget to the National Assembly in October 2023.
The budget is predicated on the parameters set out in the 2025-2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF-FSP), earlier approved by the National Assembly.
Tinubu was accompanied to the budget presentation by the Secretary to the Government of the Federation (SGF), George Akume; and the Chief of Staff to the President, Femi Gbajabiamila; among other top government officials.
The framework is based on an oil price benchmark of $75 per barrel, daily oil production of 2.06 million barrels, an exchange rate of N1,500 to the dollar, a GDP growth rate of 4.6% as well as a 15.75% inflation rate.
A highlight of the budget shows defence and security taking N4.91trn, infrastructure received N4.06trn, health got N2.48trn and education, N2.5trn.
A breakdown of the 2025 budget shows total projected revenue of N34,820,000,000,000 out of which the expenditure is projected at 47,960,000,000,000, an increase of 36.8 percent from the 2024 estimate. While N15.81 trillion is allocated to debt servicing, the fiscal deficit is estimated at N13.08 trillion, or 3.89 percent of the GDP.
The President said the Federal Government aims to stabilise the exchange rate at N1,500 to the dollar to ensure the smooth implementation of the 2025 budget.
“The budget projects that inflation will decline from the current rate of 34.6% to 15% next year, while the exchange rate will improve from approximately N1,700 per dollar to N1,500. The base crude oil production assumption is set at 2.06 million barrels per day.
“The projections are based on the following observations: reducing the importation of petroleum products, increasing exports of refined petroleum products, and achieving a bumper harvest driven by enhanced security, which will reduce reliance on food imports. Additionally, we aim to increase foreign exchange inflows through foreign portfolio investments.
“Our crude oil output and exports will improve, coupled with a substantial reduction in upstream oil and gas production costs.”
President Tinubu, who arrived at the National Assembly complex at about 12:10 pm, was accompanied by Secretary to the Government of the Federation (SGF), Senator George Akume; Chief of Staff to the President, Femi Gbajabiamila; minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Budget and National Planning, Atiku Bagudu; Minister of Marine and Blue Economy, Gboyega Oyetola; Minister of Solid Minerals, Dele Alake; Minister of Health, Prof. Ali Pate; Minister of State for Foreign Affairs, Amb. Bianca Ojukwu, amongst others
Also, he targeted an exchange rate of N1,500 to the dollar.
Tinubu stated that the budget projects inflation to decline from the current rate of 34.6% to 15% next year, while the exchange rate will improve from approximately N1,700 per dollar to N1,500.
In the same vein, in a bold move to maintain fiscal continuity and avoid disruptions in the execution of government projects, the National Assembly has extended the lifespan of the 2024 budget to June 30, 2025.
The decision, announced by Senate President Godswill Akpabio at a joint sitting on December 18, has effectively broken the tradition of the January-December budget cycle.
Akpabio explained that the extension would ensure that key government projects continue uninterrupted while the 2025 budget undergoes deliberation.
“The enabling law for the extension has been put in place to sustain the momentum of budget implementation,” Akpabio said.
The Senate President also highlighted key legislative initiatives, including the Tax Reform Bill and the Nigerian Revenue Service Establishment Bill 2024, which he described as critical to advancing the vision of a prosperous and technologically advanced Nigeria.
Akpabio urged ministries, departments, and agencies (MDAs) to prioritize their roles in the budget defence process and ensure timely submissions.
In his remarks, Akpabio noted that the performance of the 2024 budget thus far has been mixed, with capital expenditure at 50% and recurrent expenditure at 48%.
He warned MDAs that failure to appear for budget defence sessions or causing unnecessary delays would not be tolerated, signaling the National Assembly’s commitment to enforcing accountability.
“This extension will mitigate the challenges caused by delayed project implementation and fiscal bottlenecks, while ensuring that critical expenditures continue seamlessly,” Akpabio added.
The introduction of the January-December budget cycle in 2020, under the leadership of the ninth National Assembly during the Buhari administration, was aimed at enhancing budget performance.
Meanwhile, the Peoples Democratic Party (PDP) has dismissed President Bola Tinubu’s N47.9 trillion 2025 budget proposal, describing it as “hopeless,” “shady,” and “anti-people.”
The party warned that the budget’s implementation would exacerbate Nigeria’s insecurity, poverty, and hopelessness.
In a statement, PDP National Publicity Secretary, Hon. Debo Ologunagba, criticised the budget for lacking significant provisions for critical sectors like agriculture, food production, electricity, petroleum, gas, and Small and Medium Enterprises. He argued that these sectors are vital drivers of the national economy.
Ologunagba also expressed disappointment that the budget failed to offer strategic provisions to reduce the costs of fuel, food, electricity tariffs, and other essential goods and services affecting the populace.
“President Tinubu dashed the hopes of millions of suffering Nigerians who expected him to use the budget to bring relief,” he said.
The PDP took issue with President Tinubu’s claim that the 2024 budget achieved an 85% performance rate, labeling it “bogus” due to the lack of details regarding recurrent and capital expenditure.
The party also criticised the claim that the economy had improved under Tinubu’s leadership, despite worsening poverty, collapsing infrastructure, soaring inflation (34.6%), and high unemployment (40%).