FEC Approves ₦47.96 Trillion for 2025 Budget Proposal

A budget proposal for the fiscal year 2025 that was worth N47.86 trillion was approved by the Federal Executive Council (FEC) yesterday, marking a significant departure from the last meeting that took place in 2024 that took place.

While briefing newsmen at the conclusion of the Federal Executive Council meeting, which was presided over by President Bola Tinubu, Senator Atiku Bagudu, who is the Minister of Budget and Economic Planning, disclosed this information.

He stated that the framework for the budget for the year 2025 was based on the benchmark price of oil, which was $75 per barrel, the output of oil, which was 2.06 million barrels per day, and the exchange rate, which was N1,400 to a dollar.

After a presentation to the Federal Executive Council that was led by Tanimu Yakubu, the Director General of the Budget Office, the plans for the budget for the year 2025 were approved by the Federal Executive Council today (yesterday). The revisions that Mr. President instructed were included in the budget proposals.

This proposal for the budget for the year 2025 outlines the financial plan that the federal government intends to implement for the fiscal year 2025. It is also in line with the renewed hope agenda and the national development plan for the years 2021 and 2025.

In the past, the medium-term expenditure framework and fiscal strategy paper were designed to build on the progress that has been made in macroeconomic stability, gains in security, gains in infrastructure, human capital development effort and creative industries, manufacturing, and all of the measures that have been taken to expand economic activity, create consumer credit, national agricultural development fund, gas, CNG initiative, and housing initiative programs.

“Every single one of them had the intention of fostering economic activity and the achievements that were observed in 2024. In the framework for the year 2025, the benchmark oil price is set at 75 dollars per barrel, the oil production rate is set at 2.06 million barrels per day, and the exchange rate is set at 1400 naira.

All of these are already incorporated into the framework for expenditures over the medium term that we have outlined here, which has also been approved by the National Assembly.

As a result, the total expected revenue for the year 2025 is estimated to be N34,820 trillion, while the expenditures are projected to be N47,960 trillion. This represents a 36.8% increase from the projection for the year 2024. The deficit for the year 2025 is projected to be N13.13 trillion, which is equivalent to 3.89% of GDP.

It is important to keep in mind that this administration took over a deficit of N6.1 trillion from the budget for the year 2023. In spite of this, we were still able to keep the deficit at the same level, as he explained, given the success that we had in 2024.