The Federal Executive Council (FEC) has approved a proposed national budget of ₦47.9 trillion for the year 2025.
This announcement was made by the Minister of Budget and Economic Planning, Atiku Bagudu, during a briefing with journalists after the FEC meeting, which was led by President Bola Tinubu.
The budget is part of the Medium-Term Expenditure Framework (MTEF) for 2025 to 2027 and aligns with the Fiscal Responsibility Act of 2007.
Bagudu stated, “The fiscal objectives are conservative because we want to be cautious, even though we believe our projections will be exceeded. The approved budget for the National Assembly in the MTEF is ₦47.9 trillion, with new loans amounting to ₦9.2 trillion to cover the budget deficit in 2025.”
He added that there is a need to continue with the deregulation of the petroleum market and exchange rate to stabilize the economy. He also emphasized the importance of pushing the Nigerian National Petroleum Corporation Limited (NNPC) to reduce its oil and gas production costs. Furthermore, there may be a need to amend certain parts of the Petroleum Industry Act of 2021 to address risks affecting the Federation.
The FEC approved the Medium-Term Expenditure Framework and fiscal strategy paper, which will be sent to the National Assembly. This is in addition to other economic stabilization and tax reform bills already under consideration by lawmakers, which are expected to drive strong economic growth in 2025.
The approved framework forecasts a GDP growth rate of 4.6%, an exchange rate of $75 per naira, and an oil production target of 2.06 million barrels per day.
