The Federal Government has officially approved the 2025 budget proposal on Monday, following the Senate's endorsement of the Medium-Term Expenditure Framework (MTEF) for 2025–2027 on November 22. This marks an important milestone in the preparation for the next fiscal year, as the approval of the budget sets the stage for its presentation to the National Assembly. The Federal Executive Council (FEC) has completed the necessary steps to finalize the budget proposal ahead of President Bola Tinubu’s scheduled presentation on Wednesday.
According to Punch Online, President Bola Tinubu is now set to present the proposed N47.96 trillion budget to the joint session of the National Assembly on Wednesday. This was a shift from the initially planned presentation on Tuesday, which was postponed to allow the executive arm to finalize key adjustments to the budget proposal. The delay aims to ensure that all necessary refinements and adjustments are made before the formal presentation. This decision was confirmed by a senior official from the National Assembly, along with the Minister of State for Agriculture, Sabi Abdullahi, who corroborated the adjustment in the schedule.
In a statement to journalists from the Senate Press Corps, Abdullahi explained, “The budget presentation has been moved from Tuesday to Wednesday. The executive needs to make a few final adjustments.” Senate President Godswill Akpabio had previously made an announcement during a plenary session, stating that President Tinubu would present the budget on Tuesday at the House of Representatives chamber. He further clarified that plenary would begin at 10:30 a.m., allowing senators to gather in the Red Chamber before proceeding in a procession to the House chamber for the presentation. The new timeline reflects the importance of ensuring that the proposed budget is fully refined before being formally submitted to the legislature.
After the FEC meeting, the Minister of Budget and Economic Planning, Abubakar Bagudu, reiterated that the budget size remains N47.96 trillion, as initially outlined in the MTEF. He further revealed that new borrowings would amount to N9.22 trillion. The council had earlier approved the MTEF and Fiscal Strategy Paper on November 14, 2024, marking a critical planning tool to guide the federal government’s fiscal strategy over the next three years. The MTEF establishes macroeconomic assumptions and targets to direct national budgeting, including projections for key economic indicators such as oil prices, exchange rates, inflation, and GDP growth.
The MTEF for the 2025–2027 period sets the following key parameters:
Oil price benchmark: $75 per barrelOil production target: 2.06 million barrels per day
Exchange rate: N1,400 to the US dollar
GDP growth rate: 4.6%
For the 2025 fiscal year, the total projected expenditure is N47.96 trillion, with a fiscal deficit of N13.13 trillion, representing 3.89% of GDP. The planned borrowings for 2025 are estimated at N13.8 trillion, highlighting the government's approach to managing its fiscal responsibilities while addressing its financial needs. Bagudu emphasized that the size of the budget and its assumptions are clearly reflected in the MTEF approved by the National Assembly, signaling the transparency and thoroughness of the process.
Following the approval, Bagudu confirmed that the total projected revenue for 2025 is N34.82 trillion, marking a significant 36.8% increase from the 2024 estimate. Despite the delay in the budget presentation, he assured that the adjustment would not affect the January–December implementation cycle. The Senate's earlier approval of the MTEF ensures that the budget size and its underlying assumptions are already clarified, ensuring a seamless process moving forward.
Meanwhile, the Minister of Information and National Orientation, Mohammed Idris, confirmed that ongoing discussions between the Executive and the National Assembly had contributed to shifting the presentation to Wednesday, December 18. These discussions have proven vital in aligning both branches of government on the final budget details. Bagudu also referenced President Tinubu’s previous remarks during the 2024 budget presentation, where he emphasized the National Assembly’s crucial oversight responsibilities. The President urged ministries, departments, and agencies to fully respect the legislative process and highlighted the importance of transparency and collaboration between the Executive and Legislature.
Bagudu concluded by noting that the strengthened relationship between the Executive and the Legislature has bridged gaps, improved engagement, and fostered confidence in the budget’s implementation. He stated, “That, I believe, has helped improve confidence between the executive and the legislature to the extent that Mister President is determined to present the budget within 48 hours.” He acknowledged the challenging nature of the timeline but expressed confidence in the cooperation between the two branches of government. He also mentioned that, even if the budget was not passed by December 31, the country’s constitution allows the executive to continue incurring expenditure, ensuring operations are not disrupted.
Bagudu also expressed optimism about meeting the target of 2.06 million barrels-per-day crude oil production, noting that it is an achievable goal. He pointed out that Nigeria had previously achieved even higher production levels, and with recent discoveries in new production areas such as Kolmani and Nasarawa state, the goal is within reach. “So this is not too ambitious, but Mr President accepted it and is going to hold people accountable for these numbers,” Bagudu clarified.
Regarding the 2024 budget performance, Bagudu reported that the revenue estimate for the 2024 budget stood at N25.8 trillion as of September 30, 2024. By that time, revenue inflows had reached N14.55 trillion, or 75% of the pro-rated amount. He emphasized that this figure was likely higher now, driven by robust performance in the non-oil revenue sector and the deregulation of the petroleum industry, which has alleviated financial strains. On the expenditure side, the 2024 budget forecasted N21 trillion, with allocations for debt service, personnel costs, and capital expenditure. He noted that MDAs had utilized 51% of the capital expenditure for projects.
Finally, Bagudu affirmed that the country is on track with its debt service obligations, with a 100% performance in debt servicing. He expressed confidence that Nigeria would not default on its obligations, thanks to strong leadership and financial discipline. The performance on personnel and pension payments was also near 100%, while capital expenditure performance stood at 51%.
