By Federal Government Approves N47.9 Trillion 2025 Budget Plan with Key Economic Targets
On Thursday, the Federal Government approved the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper for 2025-2027, outlining a proposed budget of N47.9 trillion for 2025. The MTEF, a key tool guiding national budget planning, includes new borrowings of N9.22 trillion to address budget deficits, as stated by Minister of Budget and Economic Planning Abubakar Bagudu following the Federal Executive Council meeting in Abuja.
Bagudu explained that the MTEF, presented by Budget Office Director-General Tanimu Yakubu, details macroeconomic assumptions essential for 2025, including an oil price benchmark of $75 per barrel, an oil production target of 2.06 million barrels per day, and an exchange rate of N1,400 per US dollar, with a projected GDP growth rate of 4.6%. Aggregate expenditure for 2025 is estimated at N47.9 trillion, with borrowing accounting for 3.87% of GDP.
The MTEF comes amid delays as President Bola Tinubu prepares to present the 2025 Appropriation Bill to the National Assembly, his second since assuming office. The framework not only sets economic targets but also aims to sustain fuel price deregulation, manage exchange rates, and lower oil and gas production costs.
In addition, Bagudu highlighted that the 2024 budget performance report shows significant progress in non-oil revenue streams and spending. As of August, actual spending reached N16.98 trillion, with N3.65 trillion allocated to capital projects. He noted that despite delays, improvements in revenue collection and expenditure management continue.
The MTEF and Fiscal Strategy Paper are set for submission to the National Assembly by Monday, November 18. Bagudu expressed confidence in maintaining the January-December budget cycle, emphasizing strong cooperation with the National Assembly for swift approval.
