President Bola Tinubu says the Federal Government targets N34.82 trillion revenue to fund the N47.9 trillion 2025 budget.
Tinubu stated this on Wednesday in Abuja while presenting the 2025 Appropriation Bill to joint session of the National Assembly.
The N47.9 trillion budget was christened “Budget of Restoration, Securing Peace and Rebuilding Prosperity.”
Mr Tinubu said that the budget reinforced his administration’s roadmap to securing peace, prosperity and hope for the greater future of Nigerians.
He said that the Federal Government’s expenditure was projected to be N47.9 trillion, including N15.81 trillion for debt servicing.
“A total of N13.08 trillion or 3.89 per cent of GDP will make up the budget deficit,” he said.
The president listed highlights of the 2025 budget allocations to include: defence and security: N4.91 trillion; infrastructure: N4.06 trillion; Health: N2.48 trillion and Education: N3.52 trillion.
“This is an ambitious but necessary budget to secure our future. The budget projects inflation will decline from the current rate of 34.6 per cent to 15 per cent next year.
“The exchange rate will improve from approximately N1,700 per dollar to N1,500 and a base crude oil production assumption of 2.06 million barrels per day,” he said.
Tinubu said that the projections were targeted at reduction of importation of petroleum products, alongside increased export of finished petroleum products.
According to him, they are also targeted at bumper harvests, driven by enhanced security, reducing reliance on food imports and increased foreign exchange inflows through foreign portfolio investments.
“Others are: higher crude oil outputs and exports, coupled with a substantial reduction in upstream oil and gas production costs,” he said.
The president said that the budget was a demonstration of government’s commitment to stabilising the economy, improving lives and repositioning the country for greater performance.
He also said the budget sought to consolidate the key policies instituted to restructure the economy, boost human capital development, increase the volume of trade and investments and bolster oil and gas production.
The budget, he said, would equally get the manufacturing sector running again and ultimately increase the competitiveness of the economy.
The president said that it was cheering that the economy was responding positively to stimulus.
He said that the objective was to further stimulate the economy through implementation of targeted fiscal stimulus packages via public expenditures and specific non-inflationary spending.
“The reforms we have instituted are beginning to yield results. Nigerians will soon experience a better and more functional economy.
“Global economic growth for the outgoing year 2024 was projected at 3.2 per cent and, against predictions, our country made significant progress.
“Our economy grew by 3.46 per cent in the third quarter of 2024, up from 2.54 per cent in the third quarter of 2023.
“Our foreign reserves now stand at nearly 42 billion dollars, providing a robust buffer against external shocks.
“Our rising exports are reflected in the current trade surplus, which now stands at N5.8 trillion according to the National Bureau of Statistics. (NBS).
“These clear results of gradual recovery, among others, reflect the resilience of our economy and the impacts of deliberate policy choices we made from the outset,” he said.
Mr Tinubu further stated that his administration attained remarkable milestones in implementing the 2024 budget, adding that N14.55 trillion was generated in revenue, meeting 75 per cent of its target as of the third quarter.
He said that the 2025 budget would restore macro-economic stability, enhance the business environment, inclusive growth, employment and poverty reduction as well as promote equitable income distribution and human capital development.
“Our budgetary allocations reflect the administration’s strategic priorities, especially in the implementation of the ‘Renewed Hope Agenda’ and its developmental objectives,” he said.
The president said that the budgetary allocations underscored the administration’s strategic priorities, particularly in advancing the renewed hope agenda and achieving its developmental objectives.
“As we embark on implementing the 2025 budget, our steps are deliberate, our decisions resolute and our priorities clear.
“This budget reflects a renewed commitment to strengthening the foundation of a robust economy, while addressing the critical sectors essential for the growth and development we envision,” he said.
Mr Tinubu said that the federal government had significantly increased funding for the military, paramilitary and the police force to secure the country, protect the borders and consolidate government’s control over the nation’s territory.
“Government will continue to provide our security forces with the modern tools and technology they need to keep us safe.
“Boosting the morale of our men and women in the armed forces will remain our government’s top priority.
“Our administration will continue to empower them to defeat insurgency, banditry and all threats to our sovereignty.
“Our people should never live in fear, whether on their farmlands, highways or cities. By restoring peace, we restore productivity, revive businesses and rebuild our communities,” he said.
Mr Tinubu also said that government was accelerating investments in energy, transport and public works through leveraging private capital.
“We hope to complete key projects that drive growth and create jobs. We have already embarked on key legacy projects: Lagos-Calabar coastal highway and Sokoto-Badagry highway.
“This will have a huge impact on the lives of our people and accelerate economic output,” he said.
On human capital development, the president said that his administration had so far disbursed N34 billion to more than 300,000 students through Nigeria Education Loan Fund, NELFund.
“In the 2025 budget, we have made provision for N826.90 billion for infrastructure development in the educational sector.
“This provision also includes those for the Universal Basic Education (UBEC) and the nine new higher educational institutions.
“We are convinced that universal health coverage initiatives will strengthen primary healthcare systems across Nigeria.
“In this way, we have allocated N402 billion for infrastructure investments in the health sector in the 2025 budget and another 282.65 billion naira for the basic health care fund.
“Our hospitals will be revitalised with medication and better resources, ensuring quality care for all Nigerians.
“This is consistent with the federal government’s planned procurement of essential drugs for distribution to public healthcare facilities nationwide, improving healthcare access and reducing medical import dependency,” he said.
He said that government was supporting farmers with funding and inputs to reignite productivity and revitalise agriculture.
“Food security is non-negotiable. In this regard, we are taking bold steps to ensure that every Nigerian can feed conveniently and none of our citizens will have to go to bed hungry.
“As your president, I remain committed and resolute to continue to lead the charge. This 2025 budget proposal lays the foundation for peace, prosperity and the much-needed hope.
“It is the plan through which a Nigeria where every citizen can dream, work and thrive in safety can be achieved,” the president said.
