Tinubu approves N54.99trn budget for 2025

President Bola Tinubu has signed the N54.99 trillion budget for the 2025 fiscal year into law.

The newly approved budget represents a 99.96% increase from the N27.5 trillion allocated in 2024.

Tinubu signed the bill at the State House in Abuja on Friday after the National Assembly revised and approved it on February 13.

The final figure surpassed the initial N49.7 trillion proposal submitted by the president.

A breakdown of the budget highlights a total expenditure of N54.99 trillion, with statutory transfers amounting to ₦3.65 trillion.

The recurrent (non-debt) expenditure stands at N13.64 trillion, while capital expenditure is allocated at N23.96 trillion.

Additionally, N14.32 trillion is designated for debt servicing, and the deficit-to-GDP ratio is set at 1.52%.

Earlier this month, President Tinubu wrote to the National Assembly requesting adjustments to the budget.

He attributed the increase to additional revenue sources, including N1.4 trillion from the Federal Inland Revenue Service (FIRS), N1.2 trillion from the Nigeria Customs Service (NCS), and N1.8 trillion from other government agencies.

The president initially presented the budget proposal to lawmakers on December 18, 2024.

He stated, “With great honour, I present to this esteemed joint session of the National Assembly the 2025 Budget of Nigeria, titled ‘The Restoration Budget,’ aimed at securing peace and fostering prosperity.

“This budget is designed to stabilize the macroeconomic environment, improve the ease of doing business, drive inclusive growth, create jobs, reduce poverty, and promote fair income distribution alongside human capital development.

“For 2025, our revenue target stands at ₦34.8 trillion to support the budget, while total government spending is projected at ₦49.7 trillion, including ₦15.81 trillion allocated for debt servicing.

“The budget deficit is estimated at ₦13.0 trillion, representing 3.89% of GDP. While ambitious, this financial plan is crucial to safeguarding our nation’s future.

“We anticipate a reduction in inflation from the current 34.6% to 15% by next year, alongside an improvement in the exchange rate from approximately ₦1,700 per dollar to ₦1,500 per dollar.”