FG approves N47.9tn budget for 2025 fiscal year

Onome Amuge

The  federal government has approved the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP). The approved MTEF entails a proposed budget size of N47.9 trillion, with new borrowings of N9.22 trillion included in the total.

Abubakar Bagudu, Nigeria’s minister of budget and economic planning, shared the details of the approved MTEF and SP with State House correspondents, following the Federal Executive Council meeting at the Aso Rock Villa in Abuja.

Bagudu noted that the FEC approved the memorandum by the Ministry of Budget and Economic Planning, presented by Tanimu Yakubu, the director general of the Budget Office.

further revealed that the Federal Executive Council intends to send the framework to the National Assembly on either Friday, November 15, or Monday, November 18.

Among the parameters outlined by the minister were a 2025 oil price benchmark of $75 per barrel, oil production of 2.06 million barrels per day, an exchange rate of N1400 to $1, and a projected 4.6 per cent growth in the country’s GDP.

He stated further, “For 2025, the Federal Government’s budget estimate for aggregate expenditure is N47tn, including a borrowing of N13.8tn, which is 3.87 percent of the estimated GDP.

“This includes projections, with, for the first time, provisions for contributions to the development commissions that have been approved by the National Assembly.”

The minister further shared that the government intends to continue its commendable efforts in the deregulation of petroleum prices and the exchange rate. 

He added that the government also intends to mandate the Nigerian National Petroleum Corporation Limited to reduce its oil and gas production costs. 

The minister also hinted that in addition, amendments may be made to relevant sections of the Petroleum Industry Act 2021 to ensure better risk management for the federation.