The Federal Executive Council (FEC) has proposed a budget of N47.9 trillion for the 2025 fiscal year, set to be presented to the National Assembly on Monday.
This announcement came after a council meeting on Thursday, led by President Bola Tinubu at the Presidential Villa.
Minister of Budget and Economic Planning, Atiku Bagudu, revealed key details of the proposal, including a projected crude oil price of $75 per barrel and an exchange rate of N1400 to the dollar. The budget also assumes an oil production rate of 2.06 million barrels per day. To address the budget deficit, Bagudu noted that the government plans to include N9.2 trillion in new borrowings for the 2025 fiscal year.
Highlighting recent economic growth, which reached 3.19% in the second quarter of 2024, Bagudu stated that the government remains focused on combating inflation, boosting economic resilience, and supporting sectors with high employment potential. He emphasized that the administration is committed to improving the business environment and implementing youth development and social investment programs.
Bagudu also discussed the FEC’s review of the 2024 budget, noting promising improvements in revenue collection and spending efficiency. Although some prorated targets were missed, he assured that fiscal efforts are progressing well, with certain non-oil revenue streams performing above expectations.
Additionally, FEC approved the Medium Term Expenditure Framework and the Fiscal Strategy Paper, set for submission to the National Assembly. Bagudu expressed optimism that these initiatives, along with the Economic Stabilisation and Tax Reforms Bills currently before the National Assembly, will drive robust growth in 2025.
