On Friday, President Bola Tinubu officially signed the 2025 Appropriation Bill into law, marking a significant milestone for Nigeria’s fiscal policy with a record ₦54.99 trillion budget. The signing ceremony took place at the State House in Abuja, attended by key members of the National Assembly and senior government officials.
The budget, passed by both the Senate and the House of Representatives on February 13, reflects a substantial increase from the initial ₦49.7 trillion proposal. Following President Tinubu’s request, the National Assembly approved an additional ₦5.29 trillion, bringing the final figure to ₦54.99 trillion. This adjustment is largely driven by anticipated higher revenue inflows from government agencies, notably the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS).
The 2025 budget is strategically focused on addressing critical national issues, including security, infrastructure development, education, and healthcare. In response to the reduction in U.S. health aid, a provision of $200 million has been allocated to mitigate the impact of the shortfall.
Economic assumptions underpinning the budget include a projected crude oil production target of 2.06 million barrels per day, with a benchmark price of $75 per barrel.
Key Budgetary Allocations:
• Total Expenditure: ₦54.99 trillion
• Statutory Transfers: ₦3.65 trillion
• Recurrent (Non-Debt) Expenditure: ₦13.64 trillion
• Capital Expenditure: ₦23.96 trillion
• Debt Servicing: ₦14.32 trillion
• Deficit-to-GDP Ratio: 1.52%
The 2025 budget highlights President Tinubu’s ambitious fiscal agenda, focusing on addressing immediate socio-economic challenges while promoting long-term development, despite the country’s ongoing fiscal constraints.
