The Federal Executive Council (FEC) has approved a proposed budget of ₦47.9 trillion for the 2025 fiscal year, alongside a borrowing plan of ₦13.8 trillion.
This announcement was made by the Minister of Budget and Economic Planning, Atiku Bagudu, during a press briefing following a council meeting chaired by President Bola Tinubu at the Presidential Villa in Abuja.
The budget proposal is part of the Medium-Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper for 2025-2027, as mandated by the Fiscal Responsibility Act of 2007.
Bagudu indicated that the framework will be submitted to the National Assembly either on Friday or Monday, ensuring compliance with legal requirements.
Key economic parameters guiding the 2025 budget include a projected Gross Domestic Product (GDP) growth rate of 4.6%, an oil price benchmark set at $75 per barrel, and an exchange rate of ₦1,400 to $1. The government also anticipates oil production to reach 2.06 million barrels per day.
In detailing the fiscal strategy, Bagudu emphasized that the planned borrowing of approximately ₦13.8 trillion, which constitutes about 3.87% of GDP, is aimed at funding critical infrastructure projects and economic initiatives.
He highlighted that this approach is part of a broader strategy to balance government spending while managing debt sustainably.
Bagudu noted positive signs for the Nigerian economy, reporting a growth rate of 3.19% in the second quarter of 2024, which is expected to continue into 2025 as efforts to combat inflation and stabilize key economic sectors progress.
