FEC Approves N47.9trn Budget Proposal for 2025
By Patience Ikpeme
The Federal Executive Council (FEC) approved a proposed budget of N47.9 trillion for the 2025 fiscal year on Thursday.
Minister of Budget and Economic Planning, Atiku Bagudu, announced the decision following a council meeting chaired by President Bola Tinubu at the State House in Abuja.
This budget forms part of the government’s Medium Term Expenditure Framework (MTEF) for 2025-2027, as mandated by the Fiscal Responsibility Act of 2007.
Bagudu outlined key economic assumptions in the budget, including a crude oil price set at $75 per barrel, an exchange rate of N1,400 to the US dollar, and projected daily oil production of 2.06 million barrels. These parameters, he noted, aim to support continued economic growth, projected at 4.6% for 2025.
The minister noted the Federal Government’s commitment to addressing inflation, building economic resilience, and bolstering support for the nation’s economy. “Nigeria’s economy is moving in the right direction, achieving positive growth and greater stability,” Bagudu said, referring to the 3.19% growth recorded in the second quarter of 2024.
In addition, the FEC reviewed the 2024 budget’s implementation, with promising outcomes reported in revenue collection and expenditure management. Although some targets were not met on a pro-rated basis, Bagudu indicated that fiscal efforts remain on track, with non-oil revenue streams performing better than expected.
Bagudu also announced that the 2025 budget would include N13.8 trillion in borrowing, accounting for approximately 3.87% of projected revenue. For the first time, the budget will feature provisions for contributions to development commissions recently approved or awaiting approval by the National Assembly.
The Council aims to ensure that the 2025 budget is finalized and signed by December 2024, aligning with its commitment to a January-to-December budget cycle, which will help streamline fiscal planning and implementation.
With FEC’s approval of the 2025-2027 MTEF and Fiscal Strategy Papers (FSP), Bagudu expressed confidence in Nigeria’s fiscal progress and commitment to strengthening the economy through sound budgeting and resource management.
