FEC approves 2025 budget proposal of N47.96trn
…As Tinubu shifts 2024 budget presentation to NASS to Wednesday
…Inflation rises to 34.60%, highest in 26 years
By Seun Ibiyemi and Matthew Denis
The Federal Executive Council (FEC) on Monday approved the 2025 budget proposal.
The Minister of Budget and Economic Planning, Senator Atiku Bagudu, disclosed this during a briefing with State House correspondents after the cabinet meeting, which was presided over by President Bola Tinubu at the Council Chamber of the Presidential Villa, Abuja.
He stated that the 2025 budget framework was based on an oil price benchmark of $75 per barrel, oil production of 2.06 million barrels per day, and an exchange rate of N1,400 to the dollar.
“The Federal Executive Council today (Monday) approved the budget proposals for 2025 with amendments directed by Mr. President following a presentation led by the Director General of the Budget Office, Tanimu Yakubu,” Bagudu said.
He explained that the 2025 budget proposal outlines the federal government’s financial plan for the 2025 fiscal year, aligning with the renewed hope agenda and the National Development Plan 2021–2025.
“The medium-term expenditure framework and fiscal strategy paper have been designed to build on the advances made in macroeconomic stability, security, infrastructure, human capital development, creative industries, manufacturing, and agricultural initiatives,” Bagudu added.
“These include the expansion of economic activity, the creation of consumer credit, the National Agricultural Development Fund, gas and CNG initiatives, and housing projects—all aimed at fostering growth and leveraging the successes of 2024.”
He continued, “The 2025 framework is based on an oil price benchmark of $75 per barrel, oil production of 2.06 million barrels per day, and an exchange rate of N1,400. All these have already been included in the Medium Term Expenditure Framework, which we have presented and which has also been approved by the National Assembly.”
“The total projected revenue for 2025 stands at N34.820 trillion, with expenditure projected at N47.960 trillion. This represents an increase of 36.8% compared to the 2024 estimate. The deficit for 2025 is projected at N13.13 trillion, or 3.89% of GDP.
“If you recall, this administration inherited a N6.1 trillion deficit from the 2023 budget. However, despite the challenges, the success achieved in 2024 enabled us to maintain a reasonable deficit level.”
He noted that the 2025 framework includes the projected revenue of N34.82 trillion, while the expenditure is set at N47.96 trillion, marking a 36.8% increase from the 2024 estimate. The deficit for 2025 is projected at N13.13 trillion, which represents 3.89% of the country’s GDP.
The Minister also mentioned that amendments had been made to the initial figures following input from members of the Executive Council.
Regarding the delay in presenting the budget to the National Assembly, initially scheduled for Tuesday, December 17, 2024, President Bola Ahmed Tinubu will now present the 2025 budget proposal, amounting to N47.96 trillion, to the National Assembly on Wednesday, December 18, 2024.
Mohammed Idris, Minister of Information and National Orientation, explained that the initial date of December 17 was postponed due to ongoing consultations with the National Assembly.
Idris stated that the executive is in discussions with legislative leadership to finalise the date and time for the presentation. He expressed confidence that the budget presentation would proceed as scheduled on Wednesday.
…Tinubu approves new service terms for military personnel
In another development, President Bola Ahmed Tinubu on Monday presided over the National Defence Council meeting, where he approved new Harmonised Terms and Conditions of Service (HTACOS) for officers and enlisted personnel in the Nigerian Armed Forces.
The approval, announced by Dada Olusegun, the Special Assistant to the President on Social Media, is seen as a significant move towards improving the welfare of military personnel across the country.
The revised HTACOS is designed to address longstanding concerns within the military regarding service conditions and streamline policies for both officers and enlisted personnel.
“President Tinubu presided over the National Defence Council meeting and approved the new harmonised terms and conditions of service (HTACOS) for officers, soldiers, ratings, and airmen,” Olusegun shared on his verified X handle.
The new framework aims to boost the morale and operational readiness of Nigeria’s defence forces, in line with the government’s broader strategy of prioritising welfare reforms.
…Inflation rises to 34.60%, highest in 26 years
Meanwhile, Nigeria’s inflation has risen to 34.60% in November 2024, marking the highest rate in 26 years. This is a 0.72% increase from October’s rate of 33.88%.
According to the latest Consumer Price Index (CPI) report from the National Bureau of Statistics, the inflation rate in November 2024 is 6.40 percentage points higher than the 28.20% recorded in November 2023.
The report stated: “In November 2024, the headline inflation rate stood at 34.60%, reflecting a 0.72 percentage point increase from October 2024’s rate of 33.88%. On a year-on-year basis, the November 2024 headline inflation rate was 6.40 percentage points higher than the 28.20% recorded in November 2023.”
The rise in inflation is primarily driven by increases in food prices, placing significant pressure on Nigerian households.
Month-on-month, the headline inflation rate showed a slight slowdown, standing at 2.638% in November compared to 2.640% in October. However, the year-on-year increase highlights the ongoing cost-of-living challenges faced by consumers.
Food inflation saw a sharp rise, reaching 39.93% in November 2024, up from 32.84% in the same period last year. Key staples such as yam, rice, maize, and palm oil have seen significant price increases, contributing to the food inflation surge.
Core inflation, which excludes food and energy prices, also increased, reaching 28.75% in November 2024, up from 22.38% in the same period last year. This reflects rising costs in other sectors such as transportation, housing, and personal services.
Regionally, Bauchi, Kebbi, and Anambra recorded the highest year-on-year inflation rates, at 46.21%, 42.41%, and 40.48%, respectively. In contrast, Delta, Benue, and Katsina had the lowest inflation rates, ranging from 27.47% to 29.57%.
Urban inflation stood at 37.10% in November 2024, a 6.88 percentage point increase from the previous year, while rural inflation reached 32.27%, a rise of 5.84 percentage points.
