In a significant development, the Federal Executive Council (FEC) has approved a proposed national budget of ₦47.9 trillion for the 2025 fiscal year. This decision was revealed by the Minister of Budget and Economic Planning, Atiku Bagudu, on Thursday, November 14, while addressing State House correspondents following a meeting presided over by President Bola Tinubu at the Presidential Villa.
The budget, which forms part of the Medium-Term Expenditure Framework (MTEF) for 2025 to 2027, aligns with the mandates of the Fiscal Responsibility Act of 2007. It reflects the government’s fiscal strategy and economic priorities, outlining revenue projections, expenditure plans, and key economic policies aimed at bolstering growth.
Minister Bagudu detailed that the ₦47.9 trillion budget will include new borrowings of ₦9.2 trillion to address the expected deficit in 2025. He emphasized the importance of sustaining key economic reforms to strengthen Nigeria’s macroeconomic stability. “We need to sustain the commendable market deregulation of petroleum prices and the exchange rate,” Bagudu remarked, noting that reforms could drive efficiency gains in critical sectors such as oil and gas.
Bagudu further highlighted the necessity for the Nigerian National Petroleum Corporation Limited (NNPCL) to significantly reduce its production costs. He suggested that amending specific sections of the Petroleum Industry Act (PIA) 2021 may be necessary to address pressing fiscal risks to the Federation, signaling a potential legislative push for industry reforms.
FEC’s approval of the MTEF and fiscal strategy paper represents a broader commitment to achieving economic stability and growth. These documents will be submitted to the National Assembly for legislative scrutiny and approval. According to Bagudu, the framework is complemented by ongoing economic stabilization and tax reform bills currently under consideration by lawmakers.
The Tinubu administration appears optimistic about the growth prospects for 2025, with Bagudu expressing confidence in the nation’s ability to achieve “strong growth.” The approval comes amid public discourse on economic reforms, borrowing patterns, and the government’s strategic direction in addressing revenue shortfalls, diversifying the economy, and driving sustainable development.
As the National Assembly prepares to deliberate on the proposed budget, observers and analysts are likely to focus on its implications for Nigeria’s fiscal health, economic resilience, and long-term stability.
