The Federal Executive Council (FEC) has approved a proposed budget of N47.9 trillion for the 2025 fiscal year.
This announcement was made by the Minister of Budget and Economic Planning, Atiku Bagudu, during a briefing with State House Correspondents following the FEC meeting, which was presided over by President Bola Tinubu.
According to Bagudu, the budget proposal is part of the “Medium Term Expenditure Framework (MTEF) for 2025-2027,” as mandated by the Fiscal Responsibility Act of 2007.
He explained that FEC has set an oil price benchmark of $75 per barrel, with an exchange rate of N1,400 to the U.S. dollar, and a projected oil production rate of 2.06 million barrels per day.
Bagudu noted that, following a growth rate of 3.19% recorded in the second quarter of 2024, the federal government will intensify efforts to combat inflation, enhance economic resilience, and provide greater support to stimulate the economy.
“We aim to build on recent growth by addressing inflation and enhancing economic stability,” he stated.
The Minister outlined that the Council’s deliberations included a review of the 2024 budget implementation, which he described as making “promising progress” in revenue collection and expenditure management, despite minor shortfalls in certain targets.
“A review of the 2024 budget shows that fiscal efforts are largely on track, with key non-oil revenue streams performing better than anticipated,” Bagudu explained.
Further detailing the parameters for the 2025-2027 MTEF, he confirmed an oil benchmark price of $75 per barrel for 2025, production targets of 2.06 million barrels per day, and a projected GDP growth rate of 4.6%.
He added that the proposed 2025 budget includes a total estimated expenditure of N47.9 trillion, with a borrowing projection of N13.8 trillion, constituting 3.87% of the estimated GDP.
“This comprehensive expenditure also includes significant allocations for national development commissions approved by the National Assembly,” Bagudu said.
Additionally, Bagudu highlighted FEC’s approval of the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Papers (FSP), noting that these documents establish a structured fiscal approach to achieve economic stability.
He remarked that Nigeria’s economy is “moving in a positive direction” and has shown consistent growth in economic stability.
The Minister concluded by reaffirming the administration’s commitment to sustaining fiscal discipline, with a focus on efficient revenue collection and management practices to support Nigeria’s long-term economic resilience.
