By Enyichukwu Enemanna
Nigerian authorities have approved a proposed budget of N47.9 trillion ($28.18 billion) for the year 2025, predicated on assumption of oil price of $75 per barrel and target production of 2 million barrels per day.
Also contained in the budget proposal is a deficit of 13.8 trillion naira, representing 3.87% of estimated GDP.
This was disclosed by the country’s Minister of Budget and Economic Planning, Atiku Bagudu, while briefing journalists at the end of Federal Executive Council (FEC) meeting presided over by President Bola Tinubu on Thursday in Abuja, the nation’s capital.
The approval is part of the “Medium Term Expenditure Framework (MTEF) for 2025-2027, in accordance with the Fiscal Responsibility Act of 2007, the Minister said.
The Minister added that with the growth rate of 3.19% in the second quarter of 2024, the Federal government will continue to tackle inflation, strengthen economic resilience and provide more support for the economy.
“It also included a review of the 2024 budget implementation, where it acknowledged that a review of the implementation of development 2024 budget reviews promising progress in revenue collection and expenditure management, despite lags in pro rated targets, the overall trajectory shows that fiscal efforts are on track, these key non oil streams performing better than anticipated.
“Equally it included parameters for the 2025- 2027 medium term physical 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 1,400 Naira to $1 and GDP growth of 4.6% expected for 2025, the federal government budget estimate is the aggregate expenditure estimated at 47 trillion, and this includes a borrowing of 13.8 trillion Naira, which is 3.87% of estimated and it includes projections”, he said.
Bagudu also noted that FEC approved the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Papers (FSP).
He said the Nigerian economy has turned in the right direction significantly, achieving gross positive growth rate in economic stability.
President Tinubu according to reports may present the 2025 budget to joint session of the National Assembly in the first week of December.
Traditionally, during the tenure of the 9th National Assembly and under former President Muhammadu Buhari, budget estimates for the upcoming fiscal year were usually presented in the first week of October, following the submission of the Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP) for thorough review.
But the Senate through its Finance committee said the timing of the budget presentation is solely the executive branch’s responsibility, led by President Tinubu.
Senate has said it is yet not late to present the 2025 budget which is likely to be passed and signed into law before the beginning of new financial year.
