ABUJA: The Federal Executive Council (FEC) has approved a proposed national budget of ₦47.9 trillion for the 2025 fiscal year. This approval, announced by the Minister of Budget and Economic Planning, Atiku Bagudu, follows a meeting of the FEC presided over by President Bola Tinubu on Thursday.
Bagudu, speaking to reporters after the meeting, explained that the budget is part of the Medium-Term Expenditure Framework (MTEF) for 2025 to 2027, in accordance with the Fiscal Responsibility Act of 2007. He emphasized that the fiscal objectives for the 2025 budget were set conservatively, although there is confidence that projections will be exceeded.
He revealed that the approved budget includes new borrowings of ₦9.2 trillion, aimed at financing the budget deficit for the coming year. The budget’s approval also highlights the government’s focus on sustaining market deregulation, including the pricing of petroleum and the exchange rate, while urging the Nigerian National Petroleum Corporation Limited (NNPC) to lower its oil and gas production costs significantly.
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The need to amend relevant sections of the Petroleum Industry Act (PIA) 2021 was also discussed, especially in addressing risks to the Federation, Bagudu added.
The MTEF, along with the fiscal strategy paper, will be submitted to the National Assembly as required by law. In addition, Bagudu noted that the government is working on other key economic reforms, including economic stabilization bills and tax reform measures, which are already before the National Assembly.
The framework for the 2025 budget projects a Gross Domestic Product (GDP) growth rate of 4.6 percent, an exchange rate of ₦75 to the US dollar, and oil production of 2.06 million barrels per day.
