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- President Bola Tinubu signed the N54.99 trillion 2025 budget into law
- The 2025 budget is a 99.96 per cent increase from the 2024 budget of N27.5 trillion
- The key assumptions of the 2025 budget include a crude oil production target of 2.06 million barrels per day (bpd), exchange rate of N1,500/$, and reduction of inflation to 15 per cent
President Bola Tinubu has signed the N54.99 trillion 2025 Appropriation Bill into law
President Tinubu signed the budget in the presence of principal officers of the National Assembly and other top government officials in a small ceremony in his office at the State House, Abuja, on Friday, February 28.
The 2025 Appropriation Act is a 99.96 per cent increase from the 2024 budget of N27.5 trillion.
The budget aims to address key areas, including security, infrastructure, education, and health, with an allocation of $200 million to mitigate the impact of recent United States health aid reductions.
2025 budget was passed by the National Assembly
Recall that the National Assembly passed the N54.99 trillion 2025 budget on Thursday, February 13, an increase of N790 billion from the N54.2 trillion proposed by President Tinubu.
The president, on February 5, increased the budget estimates from an initial N49.7 trillion to N54.2 trillion, citing additional revenues generated by key government agencies, including N1.4 trillion from the Federal Inland Revenue Service (FIRS), N1.2 trillion from the Nigeria Customs Service (NCS), and N1.8 trillion generated by other government-owned agencies.
Key assumptions of the budget
The key assumptions of the 2025 budget include a crude oil production target of 2.06 million barrels per day (bpd) at a benchmark price of $75 per barrel. Nigeria currently has exceeded the Organisation of Petroleum Exporting Countries’ production quota of 1.5 million bpd.
The Federal Government projects an exchange rate of N1,500/$ from around N1,700/$, and aims to reduce inflation from 34.8 per cent in December 2024 to 15 per cent within the year.
A major component of the 2025 Appropriation Act is tax reforms, which the president says are designed to enhance revenue generation and economic stability.
The proposed tax reform strategy aims to increase Value-Added Tax (VAT) to 12.5 per cent by 2026 while exempting essential goods such as food and medicine to alleviate the burden on households.
The reform also proposes reallocating VAT revenues to favour states that generate more.
National Assembly reviews 2025 budget, adjusts expenditure allocations
Meanwhile, TheRadar earlier reported that in a move to correct discrepancies in the 2025 national budget, the National Assembly conducted a review session on Tuesday, February 18, revising the capital and recurrent expenditure components.
While the total budget figure remains unchanged at N54.99 trillion, lawmakers adjusted the allocations, reducing capital expenditure by over N500 billion and increasing recurrent expenditure by the same amount.
