The Federal Government is to source N13.8trillion of the proposed N47.9 trillion 2025 Budget through borrowing.
Recall that the Federal Executive Council (FEC), on Thursday, approved the budget proposal and borrowing of N13.8 trillion.
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.
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, whuch is expected to be submitted to the 10th 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 emphasised 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 stabilise key economic sectors”.
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.
The N47.9 trillion proposed 2025 Budget 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.
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, which the administration aims to implement moving forward.
The Minister 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 macro-economic policies, particularly in the areas of market-driven pricing for petroleum products and foreign exchange, are contributing to the country’s overall economic stability.
