The 10th Senate, led by Godswill Akpabio, has approved the second reading of the ₦49.7 trillion 2025 Budget on Thursday. This approval came after detailed discussions and deliberations in plenary, following its presentation by President Bola Tinubu on Wednesday.
The budget, which is now set for further review, was referred to the Committee on Appropriations, chaired by Senator Solomon Adeola, following a voice vote conducted by Akpabio, who presided over the session.
In his speech, President Tinubu presented the 2025 Budget of Restoration to a joint session of the National Assembly, focusing on a vision of peace and prosperity for the country. The budget aims to provide a roadmap for the next year, with a projection of key revenue and expenditure allocations aimed at addressing the country's developmental needs.
The 2025 Budget is designed to finance an aggregate expenditure of ₦47.9 trillion, with revenue projections set at ₦34.82 trillion, leaving a budget deficit of ₦13.0 trillion. The budget highlights substantial allocations for critical sectors, with ₦4.91 trillion earmarked for Defence and Security, ₦4.06 trillion for Infrastructure, ₦3.5 trillion for Education, and ₦2.48 trillion for Health.
President Tinubu further detailed that ₦15.81 trillion of the budget would go toward servicing the country's debt. Other notable economic projections include an estimated daily oil production of 2.06 million barrels, an exchange rate of ₦1,500 to a US dollar, and a targeted reduction of inflation to 15%, a significant drop from the current rate of 34.6%.
The President commented, “The numbers for our 2025 budget proposal tell a bold and exciting story of the direction we are taking to retool and revamp the socio-economic fabric of our society. In 2025, we are targeting ₦34.82tn in revenue to fund the budget. Government expenditure in the same year is projected to be ₦47.90tn, including ₦15.81tn for debt servicing. A total of ₦13.08tn, or 3.89 per cent of GDP, will make up the budget deficit. This is an ambitious but necessary budget to secure our future.”
He continued, “The Budget projects inflation will decline from the current rate of 34.6 per cent to 15 per cent next year, while the exchange rate will improve from approximately 1,700 naira per US dollar to 1,500 naira and a base crude oil production assumption of 2.06 million barrels per day (mbpd). These projections are based on the following observations: (i) Reduced importation of petroleum products alongside increased export of finished petroleum products, (ii) Bumper harvests, driven by enhanced security, reducing reliance on food imports, (iii) Increased foreign exchange inflows through Foreign Portfolio Investments, and (iv) Higher crude oil output and exports, coupled with a substantial reduction in upstream oil and gas production costs.”
The President also highlighted the positive impact of various economic reforms being undertaken by his administration. “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 US dollars, providing a robust buffer against external shocks,” he added.
