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Tag: 2025 Budget

FG allocates N16trn for capital projects in 2025 Budget

The federal government has unveiled a strategy for economic growth in its 2025 budget, earmarking N16 trillion 52 percent of non-debt expenditure for capital projects.

This allocation shows the government’s commitment to infrastructure development and long-term investment in physical and social assets to address structural inefficiencies, enhance productivity, and stimulate inclusive growth.

A Presidency official familiar with the budget preparation told The Nation that, “Capital expenditure is a cornerstone of long-term economic planning, and its focus on infrastructure—spanning roads, railways, energy, healthcare, and education—is pivotal for economic expansion.”

The budget emphasizes robust investment in critical infrastructure to reduce transaction costs, streamline logistics, and enhance the efficient movement of goods, services, and people. Improved infrastructure, the Presidency official noted, creates a conducive environment for domestic and foreign investments while unlocking productivity gains across key sectors of the economy.

Reliable infrastructure is essential for industrial growth. Investments in transportation networks and energy supply are expected to strengthen inter-regional trade, reduce logistical bottlenecks, and promote industrial integration. This approach will boost agricultural and mining activities, attract manufacturing investments, and drive value chain development, ultimately increasing Nigeria’s economic output.

The labor-intensive nature of capital projects, particularly in construction and infrastructure, offers immediate employment opportunities, fostering household income growth across the country. “Beyond short-term job creation,” the Presidency official highlighted, “workers engaged in these projects gain skills that enhance their long-term employability, driving a sustainable cycle of human capital development.”

Increased capital expenditure also has a multiplier effect on the economy. Payments to contractors and workers enhance disposable incomes, driving consumption and aggregate demand. This stimulates growth in ancillary sectors such as retail, services, and transportation, creating a self-reinforcing cycle of economic expansion.

Allocations to healthcare and education infrastructure deliver transformative benefits. Improved hospitals and clinics enhance workforce productivity by improving population health and reducing healthcare-related economic burdens. Similarly, investments in educational facilities increase access to quality education, fostering a skilled and competitive labor force critical for Nigeria’s economic diversification.

The government’s focus on reducing regional disparities through targeted infrastructure projects aims to attract businesses, stimulate local economies, and promote equitable development. By integrating underdeveloped areas into the national economy, this strategy addresses socio-economic inequalities while driving localized economic activities.

The emphasis on non-oil sectors highlights a strategic shift towards reducing dependence on volatile oil revenues. Investments in agricultural infrastructure, such as irrigation systems and storage facilities, are expected to boost productivity and food security. Additionally, the expansion of industrial parks and export-processing zones will enhance non-oil exports, fostering sustainable economic growth.

Lower operational costs from improved infrastructure are expected to make Nigeria a more attractive destination for investors, encouraging private sector participation essential for sustained growth. Furthermore, infrastructure-led development builds resilience against economic shocks, ensuring a stable and diversified economy.

Read Also: FG vows to penalise vehicle owners damaging roads

Despite its promise, the heavy reliance on capital expenditure carries risks, including corruption, inefficiencies, and delays in project execution, which could erode the anticipated benefits. To mitigate these risks, effective monitoring mechanisms must be implemented to ensure transparency and accountability.

Debt servicing, also projected at N16 trillion, poses another significant challenge. Striking a balance between borrowing for growth-oriented projects and maintaining fiscal sustainability is crucial to avoid unsustainable debt accumulation. Additionally, large-scale spending must be carefully managed to prevent inflationary pressures that could destabilize the economy.

The allocation of 52% of non-debt expenditure to capital projects reflects the Federal Government’s determination to bridge Nigeria’s infrastructure deficit and lay the groundwork for sustained economic prosperity. If implemented efficiently, this strategy will unlock opportunities, create jobs, and enhance Nigeria’s global competitiveness.

December 18, 2024
2025 budget: Akpabio, Abbas, vow swift passage

Senate President Godswill Akpabio and the Speaker of the House of Representatives, on Wednesday, vowed to ensure swift consideration and passage of the 2025 Appropriation Bill.

President Bola Ahmed Tinubu laid the Bill before the Joint session of the National Assembly after giving a few highlights of the fiscal document christened budget “The Restoration Budget: Securing Peace, Rebuilding Prosperity.”

Both Akpabio and Abbas spoke during the presentation session in Abuja.

Akpabio said: “On behalf of my colleagues, I assure Your Excellency of a swift evaluation of the 2025 Appropriation Bills.

“As expected, we will ensure that due process is followed in passing these bills. We will do what is right and justifiable, conducting public hearings to ensure that the voices of Nigerians resonate within the budget, for all budgets belong to the people.

“If public sentiment necessitates adjustments to specific allocations, we will respond accordingly, ensuring that such actions are not misconstrued as padding.”

The Senate President in his welcome address titled: “A call to unity and progress” however urged the President to caution ministers and heads of Ministries, Department, and Agencies of the Federal Government to promptly honour invitations by relevant committees of the National Assembly to defend their allocations.

He said that the National Assembly is presently considering a Bill to extend the lifespan of the capital components of the 2024 budget from December 31st to June 30th, 2025.

While addressing the President, Akpabio said: “Your Excellency, we have noted the 2024 budget performances of 50% for capital expenditure and 48% for recurrent expenditure respectively.

“Given these great achievements, we have deemed it necessary to extend the life of the 2024 budget to June 30, 2025.

“The enabling law for this extension has already been put in place by this patriotic Assembly, as a testament to our appreciation for the great performance of the budget, ensuring we build upon your momentum.

“We commend your steadfast commitment to collaborate, cooperate, and work with the National Assembly to achieve your grand vision for Nigeria.

“However, let me take this opportunity to stress the importance of the Honourable Ministers and Heads of Extra-Ministerial Departments being prepared to respond promptly to requests for them to come and defend their sectoral allocation in the exercise of our legislative oversight.

“We have observed concerning behaviour from some ministers and heads of extra-ministerial departments, who sometimes neglect their duty to promptly submit to legislative oversight, sometimes even disregarding invitations from relevant Committees of the legislature. It is imperative they understand that we will not condone such breaches of the Constitution going forward.”

Akpabio commended President Tinubu’s tax reform initiatives, saying: “It is disheartening that those who have not taken the time to understand these bills are the loudest critics. I urge all Nigerians, especially those in public office, to engage with these vital reforms thoughtfully.

“This initiative marks the first comprehensive tax reform since Nigeria’s independence, presenting a transformative opportunity for rejuvenating small and medium enterprises and enhancing the livelihoods of ordinary Nigerians.

“Notably, your infrastructure renaissance has paved the way for many roads, including the Coastal Road and crucial arteries in Abuja Capital City and other parts of our dear country.

“These developments are not merely about concrete and asphalt; they represent the lifeblood of our economy, connecting our people and fostering growth.

“To my compatriots, I acknowledge that it is not yet Uhuru. However, we are light-years away from where we began, though some rivers remain to be crossed. The pains we feel are not merely the pains of hardship; they are the pains of childbirth.

“When that season arrives in Nigeria, when this administration births that season, we will rejoice for the struggles endured. For now, I ask for your patience and urge all Nigerians to cooperate with the President and maintain faith in his vision.

“Mr. President, while you cannot be everywhere, you have eyes everywhere. We, the Distinguished Senators and Honourable Members of the House of Representatives are your eyes in our constituencies and every corner of Nigeria. When our constituents struggle to afford rice, they come to us. When their shoes pinch, they seek our assistance. When the economic alarm sounds, they turn to us. Therefore, we are committed to ensuring that you touch the hearts and pulse of Nigerians through these appropriation bills resonating with the sounds of hope and signalling the dawn of Nigeria’s economic rebirth.

“Let us take a moment to commend the tireless dedication of each member of this esteemed Senate and House of Representatives. Your steadfast commitment to the welfare of our people and the advancement of our nation is a testament to the enduring spirit of Nigeria. Your love and support for the Executive Arm in fulfilling its pledge to the Nigerian people make this 10th National Assembly a beacon of patriotism, altruism, and selfless ambition.

“In this moment, let us embrace the inspiring words of President Tinubu: “Together, we will build a Nigeria that we can all be proud of.” Let us march forward, united in purpose and unwavering in resolve, as we craft a future that reflects the very best of who we are – a nation of resilience, a nation of hope, a nation of greatness.”

In his presentation, Speaker Abbas commended the proposed 2025 budget of N49.7 trillion, adding that the 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 are bold but achievable.

He said: “Addressing these challenges requires urgent and comprehensive tax reforms to broaden our tax base, improve compliance, streamline administration and reduce reliance on borrowing.

“The National Assembly will continue to work with your administration to ensure that such reforms are equitable, effective, and considerate of the needs of vulnerable populations.

“To this end, we have engaged stakeholders to address concerns raised on the tax reform bills, fostering trust and cooperation. I have personally led numerous high-level meetings and consultations with state governors and other key stakeholders on this issue, achieving positive outcomes.

“As we approach 2025, we must embrace the realities before us with determination. Stabilizing prices, boosting agricultural productivity, expanding infrastructure, and investing in education, healthcare, and security remain paramount priorities. To strengthen national unity and build trust, the government needs to communicate its achievements effectively to the Nigerian people.”

He assured the President that the National Assembly is fully committed to supporting the successful implementation of the 2025 budget, saying, “This is not merely your budget; it is a national project requiring collaboration across all arms of government.

“We will work to ensure its timely passage, provide legislative support for critical reforms, and conduct robust oversight to guarantee transparency and efficiency in its execution.

“Let us take a moment to recognise and honour the profound sacrifices made by each and every Nigerian over the past year. The removal of fuel subsidies, rising inflation, and adjustments to economic policies have created challenges.

“Yet these sacrifices are necessary for building a stronger, self-reliant, and prosperous nation. I call on all Nigerians to remain resilient and united in our collective pursuit of a brighter and better Nigeria.”

The Speaker said that the bold steps taken by President Tinubu to reposition the Nigerian economy have no doubt disrupted the status quo in the country, sparking strong resistance from vested interests.

He said the reforms which have begun to yield positive results are a clear indication of the President’s resolve to prioritise the welfare of Nigerians

He, however, said that while the reforms are yielding results, the current fiscal realities need critical reflection, saying despite being Africa’s most populous nation with over 220 million people, the 2024 national budget of $36.7 billion remains modest compared to countries like South Africa, with a budget of $160 billion for its 60 million citizens; Egypt, with $110 billion for 110 million people; Algeria, with $60 billion for 45 million people; and Morocco, allocating $50 billion for its 37 million residents.

“Indeed, Nigeria’s low tax revenue also remains a major constraint. Our tax-to-GDP ratio, currently at approximately 10.9% for 2024, is among the lowest in Africa, significantly below the continental average of 15.6%. In comparison, South Africa’s tax-to-GDP ratio stands at 25.4%, while Rwanda and Ghana, with much smaller populations, report ratios of 15.1% and 14.1%, respectively.

“Even our VAT collection efficiency – at approximately 20% – is notably below the near 70% efficiency achieved by South Africa, Equatorial Guinea, and Zambia,” Abbas said.

The Speaker added: “Over the past 18 months, your administration has taken bold and decisive steps to reform our economy. The removal of fuel subsidies, unification of foreign exchange rates, and introduction of innovative economic policies have laid a solid foundation for sustainable growth and development.

“While these reforms have demanded short-term sacrifices, they are acts of courage and patriotism. History teaches us that transformative progress often begins with difficult decisions. Examples from China’s market reforms, India’s liberalisation, and South Korea’s industrialisation affirm the enduring benefits of such bold action. These lessons inspire confidence that Nigeria’s ongoing reforms will foster economic growth, reduce poverty, and ensure long-term prosperity.

“Your administration’s reforms have disrupted the status quo, sparking resistance from vested interests. Yet, these courageous measures underscore your resolve to prioritise the welfare of Nigerians.

Read Also: 2025 Budget of Restoration anchored on non-oil revenue generation – Budget Office

“The National Assembly stands ready to support these reforms through legislative backing and to facilitate public engagement for greater understanding and acceptance. Collaboration between all arms of government remains essential to achieving our shared objectives.”

The Speaker said 2024 has been a year of mixed economic fortunes with the National Bureau of Statistics reporting a GDP growth of 3.46% in the third quarter, up from 3.19% in the second, largely driven by the services sector.

He said: “Despite challenges posed by climate change and insecurity, agriculture remained a critical contributor, accounting for 17.22% of nominal GDP in the first quarter and 22.61% in the second quarter. However, inflation, rising to 33.88% in October, alongside escalating food and energy costs, continues to strain households across the country.

“Nonetheless, the International Monetary Fund’s projection of 3.2% growth for 2025 underscores a positive trajectory if reforms are sustained and structural issues addressed.”

Abbas said the President’s international engagements have further reinforced Nigeria’s global standing, adding that the agreements from the September 2024 visit to China are set to transform rail transport, enhance digital literacy, boost agriculture, and strengthen national security while elevating Nigeria-China relations to a comprehensive strategic partnership.

He said further that his engagements in France similarly secured €300 million for critical sectors, while Brazil’s $4.2 billion grant to strengthen agriculture underscores your focus on sustainable growth.

He commended the government for its remarkable achievements is advancing local government autonomy, ensuring that resources reach grassroots communities, and empowering them to address their specific needs, saying this commitment to transparency and accountability will have a lasting impact, particularly on our rural communities.

December 18, 2024
Reps express satisfaction with President Bola Tinubu’s N47.9 trn 2025 budget

Some members of the House of Representatives have expressed satisfaction with the 2025 Appropriation Bill of N47.9 trillion presented to the joint session of the National Assembly by President Bola Tinubu on Wednesday.

The News Agency of Nigeria (NAN) reports that in the 2025 budget, the sum of N4.90 trillion was allocated to Defence, N4.06 trillion to infrastructure, N2.48 trillion to health and N3.52 trillion to education, among others.

The lawmakers, in their separate reactions after the presentation of the budget, described the budget as a ‘huge improvement’ on the 2024 budget.

The Chairman, House of Representatives Committee on Defence, Rep. Benson Babajimi (APC-Lagos), said that if well-implemented, the budget would meet the expectations of Nigerians.

“It very ambitious, a huge improvement from last year’s budget. It shows the president is bold and a reformist.

“He wants to connect Nigeria with rail and roads; the Sokoto-Badagry expressway project is a game changer; that of Lagos-Calabar is a game changer as well.

“There is a huge improvement in security, budget, health and education. That shows somebody who has a mission and a vision. The renewed hope infrastructure fund he spoke about also will take us to the next level.

“So we believe that it is a good budget, and he has prayed for cooperation from the national assembly.

“To ensure that, the Senate President, Godswill Akpabio, has emphatically said that we will ensure that the budget is ruthlessly implemented; so we are hoping for a renewal of hope in 2025,” he said.

Rep. Abubakar Fulata (APC-Jigawa) also said that all the assumptions in the budget were very satisfactory, except a few areas.

Fulata said that the over 15 trillion set aside for debt servicing out of the entire sum was not very impressive.

He stated that the current price of crude oil was hovering between $73 and $74 per barrel, with the budget predicated on $15 dollars per barrel

Read Also: 2025 Budget of Restoration anchored on non-oil revenue generation – Budget Office

“Already, we have a deficit of about $1.5 in each barrel. So I hope that we will be able to raise the money we are expecting to realise.

“We also hope that there will be peace in the Niger Delta so that we will be able to get the 2.06 million barrels per day,” he said.

On his part, Rep. Idem Unyime (PDP-Akwa Ibom) said that the January to December budget circle would not be realised.

He said that though the budget was presented within the stipulated time, the assembly could only consider it after the Christmas holidays.

Unyime said that the assembly would work on the budget and ensure its passage before the end of January 2025.

(NAN)

December 18, 2024
It’s time for every Nigerian to look forward to a better future – Tinubu

President Bola Tinubu has encouraged every Nigerian to be hopeful about the future of the country, stating that a new day has dawned on the nation.

He made this announcement in a post on his official X page, following his presentation of the 2025 Appropriation Bill to a joint session of the National Assembly on Wednesday.

The ambitious financial plan, themed the “Budget of Restoration: Securing Peace, Rebuilding Prosperity,” focuses on stabilizing the economy, creating an equitable environment for business, and fostering inclusive growth.

He wrote: “The time for lamentation is over. The time to act is now.

Read Also: BREAKING: Defence gets lion share as Tinubu presents 47.9trn 2025 budget

“A time to support and promote greater investment in the private sector. A time for our civil servants to faithfully execute our policies and programmes. It is a time for every Nigerian to look hopefully towards a brighter future because a new day has dawned on us as a nation.

“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 much-needed hope. It is the plan through which a Nigeria where every citizen can dream, work, and thrive in safety can be achieved.”

December 18, 2024
NASS members in hearty session as Tinubu unveils 2025 budget

It was a hearty and convivial atmosphere as President Bola Tinubu presented the 2025 budget estimates of N47.96 trillion to a joint session of the Senate and House of Representatives at the National Assembly Complex on Wednesday, December 18.

President Tinubu, dressed in a flowing cream-coloured agbada and green cap with the easily distinguishable infinity symbol, arrived at the chamber of the House at 12.12 pm, which served as the venue of the presentation.

The Senate President, Godswill Akpabio, and the Speaker of the House, Tajudeen Abbas, as well as senators and members, were already seated.

The chamber was usually filled to the brim and the president before his presentation expressed that he felt at home in the National Assembly.

The lawmakers from both chambers displayed solidarity as they rent the air chanting songs such as “On your mandate we shall stand” and “You are a leader.”

Addressing the lively lawmakers the president said the budget he presented was that of restoration.

The momentous occasion marked the second budget the president has presented since he took over office in 2023.

The proceedings to present the budget resumed promptly as the President arrived.

“The 2025 budget that I present today at the joint session of the National Assembly is one of restoration. It seeks to consolidate the key policies we have instituted to restructure our economy, boost human capital development, increase the volume of trade and investments, bolsters oil and gas production, get our manufacturing sector humming again, and ultimately increase the competitiveness of our economy,” Tinubu said.

Read Also: BREAKING: Tinubu presents 2025 ‘Budget of Restoration’ with bold economic reforms

President Tinubu and his Vice, Kashim Shettima have both served as members of the National Assembly.

This is expected to facilitate a more cordial relationship between both arms of government, the legislature and the executive, to enhance the lives of Nigerians.

Accompanying the President was his Chief of Staff, also a former lawmaker, who served as Speaker of the House, Femi Gbajabiamila.

In attendance at the event were the National Chairman of the All Progressives Congress, Abdullahi Ganduje; the Imo State Governor, Hope Uzodinma; Ogun State governor, Dapo Abiodun, and the Kwara State governor, Abdulrahman Abdulrazaq among others.

It was also the first time the President visited the main chamber of the House having passed his first budget last year in the temporary chamber. The main chamber was under construction then.

The president left the National Assembly after the presentation at about 1.35 pm.

December 18, 2024
10 major takeaways from Tinubu’s 2025 budget speech

President Bola Ahmed Tinubu presented the 2025 Appropriation Bill to a joint session of the National Assembly on Wednesday, outlining an ambitious financial plan themed the “Budget of Restoration: Securing Peace, Rebuilding Prosperity.”

The proposal focuses on stabilizing the economy, creating an equitable environment for business, and fostering inclusive growth.

Here are 10 major takeaways from President Tinubu’s 2025 budget speech

1. Theme of the Budget: The 2025 budget is titled the “Budget of Restoration: Securing Peace, Rebuilding Prosperity.” It focuses on stabilizing the economy, improving lives, and laying a foundation for long-term growth under the Renewed Hope Agenda.

2. Ambitious Revenue and Expenditure Projections: The government targets ₦34.82 trillion in revenue and ₦47.90 trillion in expenditures, with a budget deficit of ₦13.08 trillion (3.89% of GDP).

3. Economic Recovery and Resilience: President Tinubu highlighted an economic growth rate of 3.46% in Q3 2024, a trade surplus of ₦5.8 trillion, and foreign reserves of $42 billion as signs of recovery.

4. Inflation and Exchange Rate Targets: Inflation is projected to drop from 34.6% to 15% in 2025, while the naira-dollar exchange rate is expected to improve from ₦1,700 to ₦1,500 per US dollar.

5. Key Allocations: The budget prioritizes critical sectors, with allocations of ₦4.91 trillion for defence and security, ₦4.06 trillion for infrastructure, ₦2.48 trillion for health, and ₦3.52 trillion for education.

Read Also: BREAKING: Defence gets lion share as Tinubu presents 47.9trn 2025 budget

6. Support for Agriculture: Revitalizing agriculture to ensure food security is central to the government’s agenda. Farmers will receive funding and inputs to boost production, reducing hunger and reliance on food imports.

7. Human Capital Investments: Over ₦826.90 billion is allocated for education infrastructure, including provisions for nine new higher institutions. In healthcare, ₦402 billion will be spent on infrastructure, with ₦282.65 billion allocated to the Basic Health Care Fund.

8. Infrastructure Development: The Renewed Hope Infrastructure Development Fund focuses on energy, transportation, and public works. Notable projects include the Lagos-Calabar Coastal Highway and Sokoto-Badagry Highway.

9. Fiscal Philosophy: The budget emphasizes restoring macroeconomic stability, enhancing the business environment, fostering inclusive growth, and promoting equitable income distribution.

10. Call for Collective Action: President Tinubu called on all Nigerians, leaders, and institutions to collaborate in overcoming corruption, insecurity, and economic challenges, urging unity to build a prosperous nation.

December 18, 2024
BREAKING: Defence gets lion share as Tinubu presents 47.9trn 2025 budget

President Bola Ahmed Tinubu on Wednesday proposed the sum of N47.9 trillion to a joint session of the National Assembly as the Appropriation Bill for the 2025 fiscal year.

Tinubu’s 2025 budget is tagged: “The Restoration Budget: Securing Peace, Rebuilding Prosperity.”

Read Also: JUST IN: Security beefed up at NASS as Tinubu presents 2025 budget today

In the highlights, Tinubu said N4.91 trillion has been allocated to Defence and Security, while Infrastructure has N4.06 trillion, Education – N3.52 trillion, and Health – N2.48 trillion.

Details shortly…

December 18, 2024
BREAKING: Tinubu presents 2025 ‘Budget of Restoration’ with bold economic reforms

President Bola Ahmed Tinubu presented the 2025 Appropriation Bill to a joint session of the National Assembly on Wednesday, outlining an ambitious financial plan themed the “Budget of Restoration: Securing Peace, Rebuilding Prosperity.”

The proposal focuses on stabilizing the economy, creating an equitable environment for business, and fostering inclusive growth.

The President emphasized that the budget was designed to align with the administration’s Renewed Hope Agenda, prioritizing poverty reduction, equitable income distribution, and human capital development.

Tinubu described the 2025 fiscal framework as both bold and necessary to address Nigeria’s socio-economic challenges while charting a course toward sustainable prosperity.

The 2025 budget projects government revenue at ₦34.82 trillion, while total expenditure is pegged at ₦47.90 trillion.

Of this, ₦15.81 trillion will be allocated to debt servicing, and the fiscal deficit is estimated at ₦13.08 trillion, or 3.89 percent of the GDP.

Despite the ambitious figures, the President framed the plan as a critical investment in Nigeria’s future.

The administration anticipates significant progress in key economic metrics next year, with inflation projected to drop from 34.6 percent to 15 percent and the naira exchange rate improving to ₦1,500 per US dollar from its current level of approximately ₦1,700.

Read Also: FULL SPEECH: Tinubu presents 2025 budget

Crude oil production is expected to reach 2.06 million barrels per day, reflecting optimism for increased revenue from the oil sector.

President Tinubu’s proposal is anchored on several strategic observations, including reduced petroleum product imports due to increased local refining capacity, robust agricultural output fueled by improved security, and a higher influx of foreign investments.

The administration also aims to enhance crude oil output and reduce upstream production costs to strengthen export earnings.

The Appropriation Bill underscores the administration’s commitment to restoring macroeconomic stability while fostering an environment conducive to long-term development.

“The 2025 Budget seeks to: Restore macroeconomic stability; Enhance the business environment; Foster inclusive growth, employment, and poverty reduction; 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.

He said the overview of the 2025 Budget includes: “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 34.82 trillion naira in revenue to fund the budget; Government expenditure in the same year is projected to be 47.90 trillion naira, including 15.81 trillion naira for debt servicing; A total of 13.08 trillion naira, or 3.89 percent of GDP, will make up the budget deficit.

“This is an ambitious but necessary budget to secure our future.

“The Budget projects inflation will decline from the current rate of 34.6 percent to 15 percent 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: Reduced importation of petroleum products alongside increased export of finished petroleum products; Bumper harvests, driven by enhanced security, reducing reliance on food imports.

“Increased foreign exchange inflows through Foreign Portfolio Investments; Higher crude oil output and exports, coupled with a substantial reduction in upstream oil and gas production costs”, the President said.

December 18, 2024
FULL SPEECH: Tinubu presents 2025 budget

PROTOCOLS:

— The Vice President, Senator Kashim Shettima

— Senate President, Distinguished Senator Godswill Akpabio

— Right Honourable Speaker, Tajudeen Abbas

— National Chairman of our great party, Excellency, Abdullahi Umar Ganduje

— State Governors here present

— Distinguished Leaders and Members of the National Assembly

— Senior Government Officials here present

— Gentlemen of the press,

My Fellow Nigerians,

1. In fulfilment of one of my constitutional duties and with unyielding commitment to rebuilding Nigeria towards ensuring that we remain steadfast on the journey to a prosperous future, I hereby present the 2025 Budget to the Joint Session of the 10th National Assembly.

2. On this day, before this hallowed chamber, I present to you the 2025 Budget at a time when our country is at a crucial point in its development trajectory.

3. The 2025 Budget Proposal again reinforces our administration’s roadmap to secure peace, prosperity, and hope for a greater future for our beloved nation. This budget christened, “Budget of Restoration: Securing Peace, Rebuilding Prosperity,” strikes at the very core of our Renewed Hope Agenda and demonstrates our commitment to stabilizing the economy, improving lives, and repositioning our country for greater performance.

4. The journey of economic renewal and institutional development, which we began 18 months ago as a nation, is very much underway. It is not a journey of our choosing but one we had to embark on for Nigeria to have a real chance at greatness. I thank every Nigerian for embarking on this journey of REFORMS and TRANSFORMATION with us.

5. The road of reforms is now clearly upon us, and as the President of this blessed nation, I know this less-travelled road has not been easy. That there have been difficulties and sacrifices. They will not be in vain. And we must keep faith with the process to arrive at our collectively desired destination.

6. We must build on the progress we have made in the past eighteen months in restructuring our economy and ensuring it is strong enough to withstand the headwinds of any future shocks of the global downturn.

7. The 2025 budget that I present today is one of restoration. It seeks to consolidate the key policies we have instituted to restructure our economy, boost human capital development, increase the volume of trade and investments, bolster oil and gas production, get our manufacturing sector humming again and ultimately increase the competitiveness of our economy.

8. We do not intend to depart from this critical path to strengthen the Nigerian economy. Just as I believe in the resilience of our economy to withstand the current challenges, I also strongly believe in the resilience of the Nigerian people. Again, I summon the unstoppable Nigerian spirit to lead us on as we work to rebuild the fabric of our economy and existence.

9. The improvements we witnessed in the 2024 budget have led us into the 2025 budget. The goals of advancing national security, creating economic opportunities, investing in our youthful population, infrastructure development, and national re-orientation form the core of the 2025 budget. But more than that, this will lay a solid foundation for Nigeria’s future growth trajectory.

CURRENT ECONOMIC REALITIES AND PROGRESS

10. Distinguished Senate President, Right Honourable Speaker of the House of Representatives, leaders and members of both Chambers of the National Assembly, I report today that our economy is responding positively to stimulus. Our objective is to further stimulate the economy through the implementation of targeted fiscal stimulus packages through public expenditures and specific non-inflationary spending.

11. The reforms we have instituted are beginning to yield results. Nigerians will soon experience a better and more functional economy.

12. Global economic growth for the outgoing year 2024 was projected at 3.2 percent, and against predictions, our country made significant progress.

o Our economy grew by 3.46 percent in the third quarter of 2024, up from 2.54 percent in the third quarter of 2023.

o Our Foreign Reserves now stand at nearly 42 billion US dollars, providing a robust buffer against external shocks.

o Our rising exports are reflected in the current trade surplus, which now stands at 5.8 trillion naira, according to the National Bureau of Statistics.

13. These clear results of gradual recovery, among others, reflect the resilience of our economy and the impact of deliberate policy choices we made from the outset.

2024 BUDGET PERFORMANCE

14. I am happy to inform this National Assembly that our administration attained remarkable milestones in implementing the 2024 Budget. In 2024, we achieved:

o 14.55 trillion naira in revenue, meeting 75 percent of our target as of the third quarter.

o 21.60 trillion naira in expenditure, representing 85 percent of our target, also in the third quarter.

15. While challenges persist, we improved revenue collection and fulfilled key obligations. The transformational effects of this on our economy are gradually being felt.

PHILOSOPHY OF THE 2025 BUDGET

16. The 2025 Budget seeks to:

o Restore macroeconomic stability.

o Enhance the business environment.

o Foster inclusive growth, employment, and poverty reduction.

o Promote equitable income distribution and human capital development.

17. Our budgetary allocations reflect the administration’s strategic priorities, especially in the implementation of the Renewed Hope Agenda and its developmental objectives.

2025 BUDGET OVERVIEW

18. 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.

o In 2025, we are targeting 34.82 trillion naira in revenue to fund the budget.

o Government expenditure in the same year is projected to be 47.90 trillion naira, including 15.81 trillion naira for debt servicing.

o A total of 13.08 trillion naira, or 3.89 percent of GDP, will make up the budget deficit.

19. This is an ambitious but necessary budget to secure our future.

20. The Budget projects inflation will decline from the current rate of 34.6 percent to 15 percent 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).

21. These projections are based on the following observations:

o Reduced importation of petroleum products alongside increased export of finished petroleum products.

o Bumper harvests, driven by enhanced security, reducing reliance on food imports.

o Increased foreign exchange inflows through Foreign Portfolio Investments.

o Higher crude oil output and exports, coupled with a substantial reduction in upstream oil and gas production costs.

KEY PRIORITIES: REBUILDING NIGERIA

22. Our budgetary allocations underscore this administration’s strategic priorities, particularly in advancing the Renewed Hope Agenda and achieving its developmental objectives.

23. Highlights of the 2025 Budget Allocations:

• Defence and Security: N4.91 trillion

• Infrastructure: N4.06 trillion

• Health: N2.48 trillion

• Education: N3.52 trillion

24. As we embark on implementing the 2025 Budget, our steps are deliberate, our decisions resolute, and our priorities are clear. This budget reflects a renewed commitment to strengthening the foundation of a robust economy, while addressing critical sectors essential for the growth and development we envision.

Securing Our Nation:

25. Security is the foundation of all progress. We have significantly increased funding for the military, paramilitary, and police forces to secure the nation, protect our borders, and consolidate government control over every inch of our national territory. The 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.

26. The officers, men, and women of our Armed Forces and the Nigerian Police Force are the shields and protectors of our nation. 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.

Infrastructure Development:

27. When we launched the Renewed Hope Infrastructure Development Fund, it was with the conviction that infrastructure remains the backbone of every thriving economy. Under this programme, we are accelerating investments in energy, transport, and public works. By 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, which will have a huge impact on the lives of our people and accelerate economic output.

Human Capital Development:

28. Our people are our greatest resource. That is why we are making record investments in education, healthcare, and social services:

o Our administration has so far disbursed 34 billion naira to over 300,000 students via the Nigeria Education Loan Fund (NELFUND). In the 2025 Budget, we have made provision for 826.90 billion naira 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.

o We are convinced that Universal Health Coverage initiatives will strengthen primary healthcare systems across Nigeria. In this way, we have allocated 402 billion naira 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.

Revitalizing Agriculture:

29. Increasing agricultural production is central to our food security agenda, but insecurity has crippled this vital sector. We are supporting our farmers with funding and inputs to reignite productivity. 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.

30. Distinguished Senate President, Right Honourable Speaker of the House of Representatives, leaders and members of both Chambers of the National Assembly and fellow Nigerians, our 2025 budget proposal is not just another statement on projected government revenue and expenditures. It is one that calls for action.

31. Our nation faces existential threats from corruption and insecurity and suffers from many past poor choices. These challenges are surmountable when we work collaboratively to overcome them. We must rewrite the narrative of this nation together, with every leader, institution, and citizen playing their part.

32. The time for lamentation is over. This is a time to act. A time to support and promote greater investment in the private sector. A time for our civil servants to faithfully execute our policies and programmes. It is a time for every Nigerian to look hopefully towards a brighter future because a new day has dawned for us as a nation.

33. As your President, I remain committed and resolute to continue to lead the charge.

34. This 2025 budget proposal lays the foundation for peace, prosperity, and much needed hope. It is the plan through which a Nigeria where every citizen can dream, work, and thrive in safety can be achieved.

35. It is with great pleasure, therefore, that I lay before this distinguished Joint Session of the National Assembly the 2025 Budget of the Federal Government of Nigeria titled “The Restoration Budget: Securing Peace, Rebuilding Prosperity.

36. May God bless our Armed Forces and keep them safe. May God bless the Federal Republic of Nigeria.

Thank you.

Bola Ahmed Tinubu, GCFR

President, Commander-in-Chief of The Armed Forces,

Federal Republic of Nigeria

December 18, 2024
BREAKING: Tinubu begins 2025 budget presentation

President Bola Tinubu has begun the 2025 budget presentation at the joint session of the National Assembly.

He arrived at the House of Representatives chamber at around 12:25 pm.

The session commenced with the National Anthem, followed by both Muslim and Christian prayers.

Read Also: JUST IN: Security beefed up at NASS as Tinubu presents 2025 budget today

The highlights of the budget include: Security, Healthcare, and Infrastructure to get a significant boost, the budget is expected to reduce inflation from 34% to 15%, Health and Education will be given unprecedented priority and Military, Police to receive increased budgetary allocation as part of efforts to keep the homeland safe

Details shortly…

December 18, 2024