The Federal Executive Council has approved the borrowing N13.8trn of the proposed N47.9 trn 2025 budget.
The Minister of Budget and Economic Planning, Atiku Bagudu, disclosed this while briefing State House correspondents, at the end of the Council meeting, presided over by President Bola Tinubu at the Presidential Villa, Abuja on Thursday.
The approval is part of the Medium Term Expenditure Framework, MTEF, and Fiscal Strategy Paper, for 2025-2027, by the Fiscal Responsibility Act of 2007.
The framework is expected to be submitted to the National Assembly as required by law, either on Friday or Monday.
Bagudu outlined several key parameters that will guide the 2025 budget based on economic projections and government priorities. These include a projected Gross Domestic Product (GDP) growth rate of 4.6% for 2025, an oil price benchmark of $75 per barrel and an exchange rate of N1.400 to $1.
Additionally, the government anticipates oil production at 2.06 million barrels per day.
In terms of fiscal strategy, the budget assumes that the government will borrow approximately N13.8 trillion — about 3.87% of the GDP — to fund key infrastructure projects and economic initiatives.
Bagudu emphasized that this borrowing is part of a strategic plan to balance government spending with sustainable debt management.
The Minister further noted that “the Nigerian economy is showing signs of resilience, with a 3.19% growth rate recorded in the second quarter of 2024.
The growth is expected to continue through 2025, driven by efforts to tackle inflation and stabilize key economic sectors.”
Bagudu stressed that the Federal Government’s fiscal policies are aimed at strengthening economic resilience, continuing to address inflationary pressures, and providing more targeted support to drive long-term growth.
The Minister also highlighted that the implementation of the 2024 budget was progressing well, with significant improvements in revenue collection and expenditure management, despite some delays in achieving pro-rated targets.
“Non-oil revenue streams, in particular, have performed better than initially expected, showing promising progress," he said.
The N47.9 trillion proposed budget for 2025 includes various provisions, particularly in areas such as infrastructure development, social programs, and critical national projects.
Bagudu also revealed that for the first time, the government’s budget will include contributions to the development commissions that had recently been passed or were in the process of being passed by the National Assembly.
“These measures are designed to strengthen the country’s social and economic development at the grassroots level.”
He further noted that the federal government is committed to ensuring that the 2025 budget is passed and signed into law before December 2024, in order to create a predictable fiscal environment and adhere to the January-December budget circle that the administration aims to implement moving forward.
In addition to approving the 2025 budget, the FEC also endorsed the 2025-2027 Medium Term Expenditure Framework, MTEF, and Fiscal Strategy Papers, FSP, which outline the government’s long-term fiscal policies and strategies for achieving sustainable growth.
These documents will now be sent to the National Assembly for further review.
Bagudu emphasized that the MTEF and FSP provided the necessary roadmap for the government’s fiscal policy over the next three years, ensuring that public finances remained on a sound footing and that economic growth targets were met.
He expressed confidence that Nigeria’s economic trajectory was moving in the right direction, with positive growth recorded in key sectors.
He stressed that the government’s macroeconomic policies, particularly in the areas of market-driven pricing for petroleum products and foreign exchange, are contributing to the country’s overall economic stability.
“The fiscal efforts are on track, and we are confident that with these strategic investments and reforms, Nigeria will continue to make progress toward a more resilient and sustainable economy,” he declared.
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