FEC gives final approval to N47.96 trillion 2025 budget proposal

• The Federal Executive Council has given its final approval to the N47.96 trillion 2025 budget proposal
• The budget proposal is based on an oil price benchmark of $75 per barrel, oil production of 2.06 million barrels per day, and an exchange rate of N1,400/$
• The budget estimates are contained in the 2025-2027 Medium-Term Expenditure Framework, which has been approved by the National Assembly

The Federal Executive Council (FEC) has approved the 2025 budget proposal of N47.96 trillion.

This was disclosed by the Minister of Budget and Economic Planning, Atiku Bagudu, to State House correspondents after the last FEC meeting of 2024, held on Monday, December 16, at the Aso Rock Villa, Abuja.

Bagudu stated that the 2025 proposal is based on an oil price benchmark of $75 per barrel, oil production of 2.06 million barrels per day, and an exchange rate of N1,400/$.

The minister said the total projected revenue in 2025 is N34.82 trillion, while projected expenditure is N47.96 trillion, showing a projected deficit of N13.13 trillion.

He said, “Today, the Federal Executive Council approved the budget proposals for 2025 with amendments which Mr President directed following a presentation to the Federal Executive Council led by the Director-General of the Budget Office, Tanimu Yakubu.

“The 2025 framework is based on an oil price benchmark of $75 per barrel. Oil production of 2.06 million barrels per day; exchange rate of N1,400 (to the dollar).

“All these are already included in the Medium-Term Expenditure Framework which we have presented here, which has also been approved by the National Assembly.

“So the total projected revenue for 2025 stands at N34.82 trillion out of which the expenditure is projected at N47.96 trillion, which is an increase of 36.8 per cent from the 2024 estimate.

“The deficit for 2025 is projected at N13.13 trillion, representing 3.89 per cent of GDP. If you recall, this administration inherited 6.1 (per cent) from the 2023 budget. But given the success achieved in 2024, we were still able to maintain the deficit.”

2025 budget estimates contained in 2025-2027 MTEF/FSP

The 2025 budget estimates are contained in the 2025-2027 Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP), which has been approved by the National Assembly.

The approved framework contains total spending of N47.9 trillion and a new borrowing plan of N9.22 trillion, which includes domestic and foreign borrowings.

The MTEF/FSP is a projection of a three-year spending plan of the Federal Government, which also determines the country’s annual budget for the period.

President Bola Tinubu transmitted the 2025-2027 framework to the National Assembly for approval on November 19, which was referred to the Senate Committee on Finance for further legislative action.

FG to allocate N6.5trn for personnel costs in 2025 due to new minimum wage

Meanwhile, TheRadar reported that the Federal Government disclosed that its expenditure on personnel costs will rise by at least 60 per cent in 2025, following the implementation of the newly approved national minimum wage and consequential salary adjustments for federal civil servants. 

According to the newly released Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF), the government’s personnel costs will increase by N2.46 trillion, bringing the total personnel budget to approximately N6.56 trillion for the 2025 fiscal year.