President Bola Tinubu presented the proposed 2025 Appropriation Bill to a joint session of the Senate and House of Representatives, totaling N49.7 trillion, with a projected deficit of N13 trillion due to new borrowings.
The budget represents 3.87 percent of the estimated Gross Domestic Product (GDP) and has been dubbed the “Budget of Restoration.” It aims to secure peace and build prosperity, with a targeted revenue of N34.82 trillion to finance the projected total expenditure of N47.9 trillion.
In his address to the National Assembly, President Bola Tinubu emphasized that the proposed budget, titled “Budget of Restoration: Securing Peace, Rebuilding Prosperity,” aligns with the administration’s Renewed Hope Agenda aimed at stabilizing the economy and enhancing the quality of life for Nigerians.
Key assumptions for the 2025 budget include an oil price benchmark of $75 per barrel, oil production of 2.06 million barrels per day, an exchange rate of N1,400 to $1, and a GDP growth projection of 4.6%.
Tinubu highlighted progress in Nigeria’s economic growth, which has risen from 2.6% to an estimated 3.5%. The budget allocates N4.91 trillion for defense and security, N4.06 trillion for infrastructure, N3.5 trillion for education, and N2.48 trillion for health.
He stated that N15.81 trillion has been allocated for debt servicing, with key parameters including an oil production target of 2.06 million barrels per day, an exchange rate of N1,500 to the US dollar, and an inflation rate of 15%, a significant decrease from the current rate of 34.6%.
President Tinubu announced that the exchange rate for the 2025 budget is set at N1,500 to the dollar, a decrease of about N200 from the current rate of N1,700. He forecasted that inflation would fall from 34.6% to 15% and projected crude oil production at 2.06 million barrels per day.
These projections rely on reducing petroleum product imports, boosting exports of refined products, and achieving a high agricultural yield through improved security, which will lessen dependence on food imports. Additionally, the plan includes enhancing foreign exchange inflows from foreign investments and reducing production costs in the upstream oil and gas sector.President Tinubu announced that the exchange rate for the 2025 budget is set at N1,500 to the dollar, a decrease of about N200 from the current rate of N1,700. He forecasted that inflation would fall from 34.6% to 15% and projected crude oil production at 2.06 million barrels per day.
These projections rely on reducing petroleum product imports, boosting exports of refined products, and achieving a high agricultural yield through improved security, which will lessen dependence on food imports. Additionally, the plan includes enhancing foreign exchange inflows from foreign investments and reducing production costs in the upstream oil and gas sector.
The 2025 budget proposal highlights a bold plan to reshape Nigeria’s socio-economic landscape. It aims for a revenue target of N34.82 trillion, while government expenditures are projected at N47.90 trillion, including N15.81 trillion for debt servicing.
President Tinubu emphasized that the budget focuses on restoring macroeconomic stability, promoting growth, creating jobs, and developing human capital. He remarked that the ongoing journey of economic renewal and institutional development, initiated 18 months ago, is essential for Nigeria’s future success and expressed gratitude to all Nigerians for their commitment to this transformative effort.
President Tinubu acknowledged the challenging path of reforms that Nigeria is currently navigating, recognizing the difficulties and sacrifices involved but affirming their importance. He emphasized the necessity of maintaining faith in the reform process to reach their collective goals.
The 2025 budget he presented is focused on restoration, aiming to build on progress made over the past 18 months. It seeks to consolidate policies that restructure the economy, enhance human capital development, boost trade and investment, increase oil and gas production, revive the manufacturing sector, and improve overall economic competitiveness.
Tinubu expressed confidence in both the economy’s resilience and the strength of the Nigerian people, urging them to embody the “unstoppable Nigerian spirit” as they work to rebuild the economy. The 2025 budget prioritizes national security, economic opportunities, youth investment, infrastructure development, and national reorientation, establishing a solid foundation for Nigeria’s future growth.
President Tinubu highlighted the positive outcomes of recent reforms, stating that Nigerians will soon see a more efficient economy. He attributed signs of recovery to the resilience of the economy and effective policy choices made from the start.
In 2024, while global economic growth was forecasted at 3.2%, Nigeria’s economy outperformed expectations, growing by 3.46% in the third quarter, compared to 2.54% in the same period the previous year. The country’s foreign reserves have reached nearly $42 billion, providing a strong defense against external shocks, and Nigeria currently enjoys a trade surplus of N5.8 trillion.
Tinubu also noted key achievements from the 2024 budget: by the third quarter, the government collected N14.55 trillion in revenue (75% of its target) and spent N21.60 trillion (85% of its target). Despite ongoing challenges, improvements in revenue collection have led to significant positive impacts on the economy.
President Tinubu emphasized that the 2025 budget allocations align with the administration’s strategic priorities. The budget aims to restore macroeconomic stability, improve the business environment, promote inclusive growth, create jobs, reduce poverty, and ensure equitable income distribution and human capital development.
He described the 2025 budget proposal as a bold step toward overhauling Nigeria’s socio-economic structure, with a revenue target of N34.82 trillion to fund it. Projected government spending for the year is N47.90 trillion, which includes N15.81 trillion for debt servicing, resulting in a budget deficit of N13.08 trillion, or 3.89% of GDP.
The budget anticipates a decrease in inflation from 34.6% to 15%, an improvement in the exchange rate from around N1,700 to N1,500 per US dollar, and a crude oil production estimate of 2.06 million barrels per day.
President Tinubu outlined that the projections for the 2025 budget are based on factors such as reduced imports of petroleum products, increased exports of finished petroleum products, improved agricultural output due to enhanced security, and increased foreign investment. These elements aim to minimize reliance on food imports, boost foreign exchange inflows, and lower production costs in the oil sector.
He emphasized that the budgetary allocations reflect his administration’s commitment to ensuring the security of lives and property, as well as investments in infrastructure, education, and healthcare. Key allocations include N4.91 trillion for defense and security, N4.06 trillion for infrastructure, N2.48 trillion for health, and N3.52 trillion for education.
Tinubu urged lawmakers and citizens to move from lamentation to action and to support the promotion of greater private sector investment. He expressed his commitment to leading initiatives that will pave the way for a peaceful and prosperous Nigeria, where all citizens can pursue their dreams in safety. He also reassured current senators and representatives of their prospects for re-election in 2027.
In a light-hearted comment, President Tinubu mistakenly referred to the “11th Assembly” instead of the “10th Assembly,” affirming the re-election of current lawmakers.
In his vote of thanks following the budget presentation, Speaker of the House of Representatives, Abbas Tajudeen, emphasized the need for the government to consider Nigeria’s fiscal realities, particularly its budget-population ratio compared to other African nations. He acknowledged the Tinubu administration’s decisive economic reforms over the past 18 months, including the removal of fuel subsidies and the unification of foreign exchange rates, which he believes have set a strong foundation for sustainable growth.
Abbas noted that while these reforms require short-term sacrifices, history shows that significant progress often begins with tough decisions. He pointed to successful economic transformations in countries like China, India, and South Korea as examples of the long-term benefits of bold reforms.
He described the proposed 2025 budget of N49.7 trillion—a 35% increase from 2024—as ambitious yet commendable. The budget outlines projections of 4.6% GDP growth, a crude oil price of $75 per barrel, an exchange rate of N1,400 to the dollar, and oil production of 2.06 million barrels per day, which he deemed bold but achievable.
However, he called for critical reflection on Nigeria’s fiscal situation, comparing its modest 2024 national budget of $36.7 billion to those of other African nations, such as South Africa and Egypt. Abbas highlighted the importance of stabilizing prices, enhancing agricultural productivity, and investing in infrastructure, education, healthcare, and security.
Lastly, he stressed the need for the government to effectively communicate its achievements to build trust among citizens. He assured President Tinubu of the National Assembly’s commitment to supporting the implementation of the 2025 budget, framing it as a national project that requires collaboration across all branches of government.
The Peoples Democratic Party (PDP) has criticized President Tinubu’s proposed budget for 2025, labeling it as “hopeless,” “shady,” and “disingenuous.” The PDP claims the budget is anti-people and would exacerbate issues of insecurity, poverty, and hopelessness in Nigeria.
In a statement, PDP National Publicity Secretary Debo Ologunagba argued that the budget lacks meaningful investments in critical sectors such as agriculture, electricity, and small-to-medium enterprises, which are essential for economic growth. He expressed disappointment that the budget failed to provide strategic provisions to lower the costs of fuel, food, and essential goods, which are vital for citizens’ wellbeing.
Ologunagba further criticized Tinubu for suggesting that the economy has improved over the last 18 months despite facing high inflation rates (34.6%), rising unemployment (40%), and a dilapidated infrastructure. He dismissed the President’s claims of past budget performance as misleading, highlighting that the budget speech lacked transparency regarding the allocation between capital and recurrent expenditures.
He also pointed out concerns about the financing of the projected N47.9 trillion expenditure, which includes N15.8 trillion for debt servicing and will likely lead to increased taxes on already struggling citizens and businesses. Overall, the PDP’s statement conveys deep skepticism about the government’s financial management and commitment to improving the lives of ordinary Nigerians.
The PDP warns that the proposed 2025 budget will shrink Nigeria’s business environment, undermine the productive sector, deter domestic and foreign investment, and exacerbate the depreciation of the Naira, along with rising unemployment and inflation. This situation could push millions further into poverty and increase insecurity.
Consequently, the PDP urges the National Assembly to reject the budget in its current form. They call on lawmakers to use their legislative authority under Sections 80, 81, and 82 of the 1999 Constitution to revise the budget and include essential provisions that would promote economic growth and enhance the welfare of Nigerians.