President Bola Ahmed Tinubu has proposed a N13 trillion loan to address the deficit in Nigeria’s ambitious N49.7 trillion 2025 budget, which he presented to a joint session of the National Assembly on Wednesday.
Focus of the “Budget of Restoration”
Titled “Budget of Restoration: Securing Peace, Rebuilding Prosperity,” the proposal prioritizes defence, infrastructure, education, health, and human capital development. Key allocations include:
- Defence and Security: N4.91 trillion
- Infrastructure: N4.06 trillion (for projects like the Lagos-Calabar Coastal Highway and Sokoto-Badagry Highway)
- Education: N3.52 trillion (including funds for Universal Basic Education and nine new tertiary institutions)
- Health: N2.48 trillion (to strengthen healthcare delivery and provide essential medicines)
Revenue and Deficit Projections
The government expects to generate N34.82 trillion in revenue for 2025, leaving a deficit of N13.39 trillion, equivalent to 3.89% of GDP. The shortfall will be covered through borrowing.
“This ambitious but necessary budget is vital for securing our future,” Tinubu stated, emphasizing that borrowing is essential for achieving developmental goals.
Economic Assumptions
The 2025 budget is based on optimistic economic assumptions:
- Inflation will decline from 34.6% to 15%.
- The naira exchange rate will improve from N1,700/$ to N1,500/$.
- Oil production will increase to 2.06 million barrels per day, driven by higher export capacity and lower upstream costs.
Progress and Challenges
Tinubu highlighted progress in Nigeria’s economy, citing a 3.46% GDP growth in Q3 2024 (up from 2.54% in Q3 2023) and foreign reserves of $42 billion. The trade surplus has risen to N5.8 trillion, reflecting the positive impact of export growth.
However, he acknowledged challenges such as inflation and insecurity but expressed optimism that recent reforms would yield long-term stability and growth.
Commitment to Reforms
The 2025 budget reflects Tinubu’s vision for inclusive growth, focusing on:
- Strengthening national security.
- Revitalizing infrastructure.
- Investing in agriculture to ensure food security.
- Supporting the private sector as a driver of economic transformation.
Call for Unity
Tinubu called for collective action to address Nigeria’s challenges, urging citizens to support government reforms aimed at restoring peace and rebuilding prosperity.
Budget Office’s Perspective
Tanimu Yakubu, Director-General of the Budget Office, described the proposal as a bold response to Nigeria’s pressing challenges, designed to restore stability and rebuild trust in governance. Revenue projections of N36.35 trillion are expected, driven by improved non-oil revenue streams such as expanded tax collections, customs duties, and income from government enterprises.
The 2025 budget proposal now awaits deliberation and approval by the National Assembly.
