IBY
Peterside Rejoice Eneky
President Bola Tinubu on Tuesday presented the 2025 Appropriation Bill to a joint session of the Senate and the House of Representatives, detailing a budget proposal of N49.7 trillion, with a projected deficit of N13 trillion in new borrowings.
This budget, which represents 3.87% of Nigeria’s projected Gross Domestic Product (GDP), is aimed at revitalizing the economy and securing the nation’s future through investments in critical sectors.
The 2025 budget is dubbed the “Budget of Restoration: Securing Peace, Rebuilding Prosperity,” and sets an ambitious revenue target of N34.82 trillion to fund the projected total expenditure of N47.9 trillion.
The budget is framed as a key pillar in the government’s drive to stabilize Nigeria’s economy, boost national security, and drive infrastructural development.
In his address, President Tinubu emphasized that the budget represents a critical step in the administration’s Renewed Hope Agenda, reinforcing efforts to secure peace, rebuild prosperity, and chart a course toward a better future for Nigeria.
He stated that the budget is built on key fiscal assumptions, including an oil price benchmark of $75 per barrel, oil production of 2.06 million barrels per day, and an exchange rate of N1,400 to the US dollar. The projected GDP growth rate is set at 4.6%, with inflation expected to drop from the current rate of 34.6% to 15%.
President Tinubu highlighted significant investments in defense, infrastructure, education, and healthcare. Notable allocations include N4.91 trillion for defense and security, N4.06 trillion for infrastructure development, N3.5 trillion for education, and N2.48 trillion for healthcare. Debt servicing is projected to take up N15.81 trillion of the budget, reflecting the high cost of servicing Nigeria’s growing debt.
The President addressed the exchange rate adjustments, explaining that the rate will be pegged at N1,500 to the dollar, down from N1,700, in order to ensure a more favorable environment for implementing the 2025 budget. He also noted that these fiscal measures aim to curb the importation of petroleum products, increase exports of refined petroleum, and reduce reliance on food imports through enhanced agricultural productivity and security.
President Tinubu described the budget as part of a broader economic renewal agenda. He emphasized the progress made in the past 18 months, including a rise in Nigeria’s global economic growth from 2.6% to an estimated 3.5% in 2024, as well as the growth of Nigeria’s foreign reserves to nearly $42 billion. He also cited improvements in Nigeria’s trade surplus, which currently stands at N5.8 trillion, as evidence of the ongoing economic recovery.
The President reiterated his administration’s commitment to economic reforms, acknowledging the challenges but stressing that these sacrifices are necessary for the nation’s long-term prosperity. “This is not an easy journey, but it is one that we must take if Nigeria is to realize its full potential. The sacrifices made will lead to a more secure, prosperous future for all Nigerians,” he said.
President Tinubu pointed out that the 2025 budget aims to promote microeconomic stability, foster job creation, and invest in human capital development, with a focus on infrastructure, education, and security. “The 2025 budget will lay a solid foundation for Nigeria’s future, creating opportunities for every Nigerian to work, dream, and thrive in safety,” he declared.
The President called on all Nigerians, including lawmakers, civil servants, and the private sector, to support the reforms and investments outlined in the budget. He emphasized the importance of national unity and collaboration to achieve the country’s development goals. “The time for lamentation is over. This is a time for action. We must all contribute to building the Nigeria of our dreams,” he urged.
Tinubu concluded his speech by assuring members of the National Assembly that they would be re-elected in 2027, acknowledging their support for his administration’s policies.
In his vote of thanks, Speaker of the House of Representatives, Abbas Tajudeen, commended the President for presenting an ambitious budget, noting that while the proposals are bold, they must be carefully scrutinized in light of Nigeria’s fiscal realities. Speaker Tajudeen emphasized that the reforms introduced by the Tinubu administration—such as the unification of exchange rates and the removal of fuel subsidies—were necessary for the country’s long-term growth, even if they required short-term sacrifices.
However, the opposition People’s Democratic Party (PDP) strongly criticized the budget. In a statement, PDP spokesperson Debo Ologunagba described the budget as “anti-people,” warning that it would further exacerbate Nigeria’s economic challenges, including high inflation and unemployment rates. The PDP argued that the budget lacked meaningful investments in crucial sectors such as agriculture, energy, and small businesses, which are essential for economic growth.
“The proposed budget will not reduce inflation or improve the value of the Naira. Instead, it will deepen poverty, worsen unemployment, and increase insecurity,” Ologunagba stated.
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